Expert on creating attractive conditions for investment activities

As part of the implementation of regional policy, the Belarusian Government assesses the possibilities of symbiosis of the country’s sectoral development priorities and regional strategic goals. The available resources of administrative-territorial units are being constantly monitored with a focus on infrastructure, labour potential and natural resources of the territory. A number of research institutes are being engaged in comparable assessment of the socio-economic effects of the placement of investment projects and the costs of modernisation or construction of a new facility in the regions of the country. Candidate of Economic Sciences and analyst at the Belarusian Institute of Strategic Studies Irina Rusak commented on the stimulation of investment activity by the state.

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“A range of financial instruments have been developed. Basically, this is investment project lending, the possibility of returning part of the costs from the budget, and receiving government orders for new products. All new mechanisms require analysis, additional calculations, approvals, and enshrinement in regulatory documents, which sometimes is a deterrent to attracting investments. A potential investor always evaluates risks. When the project is joint, both public and private investments are made, so some of the risks are immediately levelled. If the project is based only on attracted investments, then there is a need not only to calculate the payback period and the possibility of attracting loans on preferential terms, but also to have potential sales markets, labour resources, consumer demand, and regional infrastructure. The participation of local authorities is also important (how quickly they are ready to help resolve force majeure issues, especially during periods of sanctions pressure and reorientation of export markets). Many free economic zones, special economic zones and parks create attractive conditions for investors, but there are still certain difficulties with developed infrastructure. Sometimes the cost of its construction is several times more expensive than the investment project itself. Periodic difficulties on the border with the EU bring a number of changes to the investment attractiveness of the Belarusian regions. The eastern regions of our country increasingly have predominant interest and potential, while transport costs are becoming one of the significant factors in opening joint ventures and building logistics,” noted Irina Rusak.