Recent legal & business developments in Belarus, May 2010
1. State Property Committee of the Republic of Belarus has announced that it is planned to sell 5 state enterprises through open auctions. The auctions are planned to be held in August and September. The following enterprises will be sold: “Bobruisk machinery construction plant”, “Lida casting-mechanical plant”, “Rechitsa textile”, “Barchim” (Baranovichy), “Volmet” (Volkovysk).
2. The Ministry of Finance of the Republic of Belarus has prepared amendments to the insurance legislation, providing equal possibilities for insurers of all forms of ownership, including insurers with foreign capital. Such amendments, in particular, include possibilities for foreign insurers to insure life in Belarus.
3. Lithuanian company Vakaru Miadenos Groupe in cooperation with Swedish company IKEA are planning to build woodworking plant that will produce chipboards, laminating boards with approximate amount of investments – 100 mln USD. Investors are planning to locate the production in Free Economic Zone “Mogilev”.
4. Railway passenger communications between Belarus and Latvia is planned to be organized in 2011. At the moment the negotiations between Belarusian and Latvian railroads and state authorities are held.
5. 13 May 2010 President of the Republic of Belarus has signed the Edict № 245 “On issuing of state bonds of the Republic of Belarus”. This Edict empowers the Government to issue Eurobonds in the amount of 2 bln USD. The term of circulation of obligations – not less than 5 years. Belarusian government has chosen several foreign companies which were authorized to organize Belarusian Eurobonds: BNP Paribas, Deutsche Bank, The Royal Bank of Scotland and Sberbank of Russia.
6. 25 May 2010 President of the Republic of Belarus has signed the Edict № 273 “Оn creation of state enterprise “National agency on investments and privatization”. The purpose of its creation – attraction foreign investments, securing effective cooperation between state bodies and potential investors, forming positive investments image of Belarus.
7. Since 1 July the Customs union between Russian Federation and Kazakhstan will start functioning. Initially it was planned that Belarus will also participate in the Customs union, however, due to disagreements, Belarus refused to sign the necessary documents. At the same time Russia and Kazakhstan declare their openness to joining of Customs union by Belarus.
