Belarus offers favourable conditions to foreign businesses

On January 18th, the President of Belarus, Aleksandr Lukashenko, held a meeting with the leadership of the Council of Ministers. Several proposed innovations affecting various areas of the economy were submitted for Head of State’s consideration.

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The meeting began with a discussion of the draft decree, which proposes to introduce a number of innovations in the field of valuation activities.
“Only an objective assessment allows making the right management decisions. Especially when it concerns the market value of state (consider, people’s) property or future budget revenues. Let’s move on. The government proposes to show more flexibility (I don’t know how much more bending can be done here) in matters of the sale of property by foreigners from unfriendly countries and to provide for cases when this is possible. 

Of course, in order to protect our economy from the lawlessness of the West in the face of growing sanctions pressure, we have adopted a number of systemic documents, and today not a single shareholder or owner who has the citizenship of an unfriendly country has the right, without special permission from the Government and a contribution to the budget, to sell off property, exposing the main economic funds. 

I would like to discuss in detail the feasibility of accepting proposals prepared by the government on permits for the sale of property by foreigners,” Aleksandr Lukashenko stressed.
As Economy Minister Yuri Chebotar explained, if now a company with foreign capital (from an unfriendly state) wants to leave the market by selling its asset to Belarus, then it will need to pay a duty of at least 25 percent and then obtain permission from the government. They are not going to abandon this approach, but it is necessary to make certain adjustments, since this rule sometimes negatively affects the current activities of organisations in the banking, leasing and construction sectors.
For example, a bank issues a loan to a citizen secured by real estate. And if this property ultimately goes to the bank, it must sell it to compensate for its losses from the unpaid loan. But, having sold the property, the bank must pay another 25 percent duty. As a result, all this one way or another falls in the future on the shoulders of its clients — ordinary people.
The situation is the same with foreign developers: according to the current rules, they can sell built housing to people only with the payment of a duty. But most likely the developer will simply compensate for their additional costs with the increased cost per square metre, and in the end everything will again fall on the shoulders of buyers.
“If this foreign bank (and it is actually foreign) plans to operate in Belarus, they must be placed on equal terms with our banks. And tomorrow this bank will curtail its activities...” Aleksandr Lukashenko noted.
“Then the rule of the decree comes into play, and he can leave only with the permission of the Government, provided that it pays at least 25 percent,” Chairman of the State Control Committee Vasily Gerasimov joined the conversation.
One of the topics of the meeting was opposition to the withdrawal of capital. Aleksandr Lukashenko noted that Belarus, surrounded by barriers and prohibitions, lives and works in difficult economic conditions.

“Sanctions are a traditional and time-tested practice of pressure by so-called world leaders on countries they dislike. Unfortunately, this is, so to speak, a fashionable economic trend. Thus, both the United States and the European Union have been cracking down on competitors for a long time. We offer foreigners some of the best conditions: preferences, benefits, infrastructure, and, of course, skill sets. Come and work. But not for the sake of profit at the expense of our people,” the Head of State emphasised.

Nevertheless, representatives of state control report facts about the outflow of funds to unfriendly countries and even the deliberate withdrawal of profits outside Belarus. 
Another topic of the meeting was the adjustment of customs legislation. According to the government, the changes are necessary to harmonise the legislation of Belarus and Russia.
“That is, as part of the implementation of the Union programme. But in the process of unification, the interests of the state cannot be infringed,” the President emphasised.
Aleksandr Lukashenko noted that relations between the two countries, no matter how good they are, must be improved. But with any changes or innovations, we must remember, first of all, sovereignty and independence.
One of the important topics on the agenda of the event was the creation of a Russian-Belarusian spacecraft for remote sensing of the Earth.
Aleksandr Lukashenko noted that the draft relevant decree had already been submitted for his consideration and the government was instructed to study the issue of financing in more detail. The President noted that the process of creating the device itself does not present any particular difficulties; this can be done, figuratively speaking, by taking a Russian platform and installing Belarusian equipment on it. 

“The project must be considered not only from the point of view of national security, but also as a promising area of bilateral scientific co-operation, which will allow developing the skill sets of both the Belarusian and Russian sides. And in the future it will bring even greater returns to us and our partners,” Aleksandr Lukashenko added and asked how things are going with the use of our first Earth remote sensing device, the service life of which has been extended, and a communications satellite. 

The President asked about the economic efficiency of both devices, how much these projects paid for themselves.
The meeting participants discussed all the identified issues substantively and in detail.
Regarding amendments to the decree, which regulates valuation activities in the Republic of Belarus, several norms in the document were laid down at the initiative of the customs authorities. As a result of the discussion, the Head of State instructed to develop criteria as soon as possible and identify organisations that are most competent and will provide assessment services within the framework of customs affairs.
It is also necessary to look at the organisation of work in this area as a whole. The audit period is until April 1st, during which time it is necessary to study the activities of appraisal organisations and establish proper order by defining clear and understandable rules of the game.
The bill on amendments to the law on customs regulation considered by the Head of State concerns both directly national customs administration and contains provisions aimed at unifying legislation with Russia.
Significant relief for business, a reduction in administrative regulations, and simplification of procedures are proposed. For example, business entities will not provide a number of documents to customs at all; in certain areas, the terms of administrative customs procedures are being reduced, and new procedures are being introduced that will make customs clearance easier for business entities.
A significant part of the changes also applies to individuals. We are talking, among other things, about simplifying the procedure for filing a customs declaration when crossing the border.
Regarding the creation of a new Belarusian-Russian spacecraft for remote sensing of the Earth, Aleksandr Lukashenko particularly focused on issues of economic efficiency and payback. An order was given to calculate costs, payback and efficiency in even more detail.
Regarding the government’s proposals regarding the sale of property by owners from unfriendly countries, Aleksandr Lukashenko instructed to develop an exhaustive list of ‘exceptions to the rules’ and make an appropriate decision at the level of the Council of Ministers. These cases will be taken into account, but otherwise strict restrictive measures aimed at preventing attempts to withdraw capital from the country will continue to be in effect.
At the meeting, Aleksandr Lukashenko also emphasised that Belarus can and should engage in import substitution in those segments that, due to sanctions, were abandoned by investors from unfriendly countries.

The State Quality Mark has been established in Belarus

The corresponding Decree No. 21 was signed by the President of Belarus, Aleksandr Lukashenko.
The sign is a red pentagon, in the center of which there is a stylised image of an inverted letter ‘K’ and the inscription ‘Belarus’. The five corners of the sign symbolise the quality of Belarusian products, achieved by a combination of five production indicators: safety, environmental friendliness, innovation, manufacturability and aesthetics.
The procedure for assigning the State Quality Mark and the list of incentive benefits and preferences provided to manufacturers upon its assignment will be determined by the government. The establishment of the State Quality Mark will help improve the quality of Belarusian goods and services. 

Based on materials of sb.by and belta.by