NEWS .

ENVIRONMENT OF INVESTMENT ACTIVITY IN BELARUS CHANGE

Press Service of the Belarusian leader reported that the President of the country, Alexander Lukashenko, has issued the according Decree No. 10 «On creation of additional conditions for investment activity in the Republic of Belarus».

The document lays down provisions, both for Belarusian and foreign investors, simplifying start-up of investment projects in Belarus. Responsibility for execution of the undertaken obligations is assigned to investors. Objects, volumes and terms of investments, as well as responsibility for their non-execution, should be clearly stated in the agreements concluded with investors. It also stipulates general preferences for projects being realized under investment agreements. Besides, it introduces a three-tier system of conclusion of investment agreements of the investors and the Republic of Belarus. The system is differentiated depending on the significance of projects and offered preferences.

The investment agreement can be concluded: a. on the basis of a resolution of the Counsel of Ministers agreed with the President of Belarus, in case the agreement provides the investor with the preferences other than stipulated by legislative acts or other executive decisions by the head of the state; b. on the basis of a resolution of the Counsel of Ministers in case the investment agreement provides the investor with privileges and preferences already established by legislative acts and other executive decisions of the President; c. on the basis of a resolution of a republican agency of the state administration, or other state organization subordinated to the government, a regional executive committee, or Executive Committee of Minsk city, in case when preferences are not required for realization of the project.

The Decree formalises mandatory terms for conclusion of investment agreements, as well as provides for possibility to extend them considering branch orientation and specifics of the investment project.

Considering practical experience of realization of investment projects in Belarus, investors, having concluded investment agreements, are being offered such general preferences as granting land property for rent without holding an auction; step-by-step processing of documents on allocation of a land plot simultaneously with construction works on the actually occupied lands, and construction of objects with parallel projecting of the next stages of construction; importing of technological equipment and spare parts for objects related to realisation of the investment projects without customs duties and value added tax. Besides that, the investor is released from reimbursement of agricultural losses, as well as compensation payments related to the transfer and devastation of green planting in populated areas, and from payment of the state duty for issue of special employment permissions to foreign citizens, involved by the investor in realisation of the investment project. And mentioned foreign citizens themselves are released from payment of the state duty for permission of temporal stay in Belarus.

At the same time, the Decree stipulates that in case of non-execution (or non-proper execution) by the investor of the undertaken obligations the Republic of Belarus can unilaterally refuse to perform its obligations under the concluded investment agreement.

The proposed norms aim at stimulation of large-scale investment activity. The Decree comes into force in three months after its official publication, except for some clauses. It is temporal and is being submitted to the National Assembly for consideration. Effect of the decree does not apply to investment agreements concluded before this document came into force.