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Student Y.D. Shumskaya

Polessky State University, Belarus

 

State regulation of investment activity in Belarus

 

Belarus has created an effective legal framework for the investment business underpinned by international treaties and the national legislation.

The Republic of Belarus is a party to the Investor Rights Convention (28 March 1997), Investment Co-operation Agreement (24 December 1993); in 1992 Belarus joined the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (18 March 1965) and the Convention Establishing the Multilateral Investment Guarantee Agency (11 October 1985, Seoul).

In addition, Belarus is a party to a number of bilateral and multilateral agreements offering the most-favored-investor treatment and (or) introducing a set of national investment rules that secure investors’ rights at the international level. Today Belarus is a party to nearly 50 treaties on the promotion and mutual protection of investment; these treaties offer additional safety guarantees for investments from the European Union, the CIS member states, countries of Asia, Latin America and others [2].

General legal conditions of performance of investment activity in Belarus are determined by the Investment Code of the Republic of Belarus, which is aimed at stimulating state support of investment activities, as well as protection of the rights of investors on the territory of the Republic of Belarus. For example, the Investment Code of the Republic of Belarus provides guarantees to use the results of investment activities and investment protection.

Foreign investors in the Republic of Belarus in accordance with the Investment Code of the Republic of Belarus shall be recognized:

1.     Foreign states and their administrative-territorial units in the person of authorized state bodies;

2.     International organizations;

3.     Foreign legal entities;

4.     Foreign organizations that are not legal entities and established in accordance with the legislation of foreign states;

5.     Foreign citizens.

The investor is entitled to dispose at his own discretion of profit (income) generated as the result of investment activities, including performance of reinvestment on the territory of the Republic of Belarus in accordance with the legislative acts of the Republic of Belarus.
         The following benefits for investors include:

1.     Strategic geographical location;

2.     Direct access to SES markets(Belarus, Russia, Kazakhstan);

3.     A well-developed infrastructure in Belarus: transport, logistics and communications;

4.     Progressive investment legislation in Belarus;

5.     Guarantees of investors rights and investment protection in Belarus;

6.     An attractive investment climate and favorable taxation policies;

7.     Government support for investors in the form of guarantees, benefits and preferences;

8.     Privatisation opportunities;

9.     6 free economic zones;

10. Highly skilled workforce;

11. Good quality of life [3].

In accordance with the legislation foreign investors have equal rights with the Belarusian legal entities and individuals.

The foreign investor is guaranteed after payment by him (it) of all taxes and other obligatory payments, established by the legislation of the Republic of Belarus, an unimpeded transfer out of the Republic of Belarus, belonging to him (it) profit (income) received in the territory of the Republic of Belarus as a result of performance of investment activities, including transfer of the proceeds from total or partial disposal of investment property upon termination of the investment activities [1].
          The State gives an investor the following guarantees:

1.     The right to private property and other proprietary and non-proprietary rights;

2.     The equality of rights and the equal nondiscriminatory protection of the rights and legitimate interests of an investor;

3.     The stability of the rights to perform investment activities and terminate them;

4.     The right to an independent choice of action and the performance of actions related to the ownership, use and disposal of the objects and results of  investment activity, including independent disposal of the revenues (profits) and free transfer of profits abroad;

5.     Compensation of the market value of the invested property and recovery of  other loss suffered by an investor as a result of nationalization or requisition allowed in exceptional cases only;

6.     Recovery of the loss and damage inflicted upon to an investor as a result of the actions (or lack thereof) of government officials.

Thus, today’s Belarus is a country open to foreign investments and offers favorable business conditions. In addition to securing investor’s rights, the State has created a system of incentives to encourage investment activity in the country. All the sectors of the Belarus economy are open to foreign investments, except the production of weapons, narcotics and toxic substances.

 

References

1.      National Internet Portal of the Republic of Belarus [electronic resource] / Belarus EU Business Council. – Minsk, 2015. – Access: http://www.beubc.com/. – Date of access: 09.04.2015.

2.      National Internet Portal of the Republic of Belarus [electronic resource] / Ministry of economy of the Republic of Belarus. – Minsk, 2015. – Access: http://www.economy.gov.by/. – Date of access: 08.04.2015.

3.      National Internet Portal of the Republic of Belarus [electronic resource] / Official Website of the Republic of Belarus. – Minsk, 2015. – Access: http://www.belarus.by/. – Date of access: 08.04.2015.