Recent legal & business developments in Belarus, June 2009
1. On June 2, 2009 Belarusian state concern of food industry “Belgospischeprom” announced tender to the position of the manager (managing company) for OJSC “Krinitsa” - the largest national beer producer in Belarus. The manger (managing company) is supposed to increase the production volume of the company, ensure the profitability of the company, repayment of investment credits, etc.
2. By virtue of the Edict No. 276 dated June 2, 2009 all licensed bank are permitted to hold the pledge on land plots/lease of land plots. Previously, 18 out of 31 Belarusian banks were allowed to hold the pledge on land plots/lease of land plots.
3. On June 9, 2009 the prime-ministers of Belarus, Russian Federation and Kazakhstan approved the draft of Single customs tariff and decided that the said countries will join WTO as single customs territory. The heads of the governments noted that the procedure of joining WTO in the recent years has become an impediment for integration processes between the three countries. Thus, the decision has been made to
4. A number of legal acts have been adopted aimed at liberalization of pricing: Resolution of the Council of Ministers No. 752 dated June 8, 2009 abolished state regulation of the pricing of the services of laundries, dry-cleaning etc. and certain goods; on June 10, 2009 the Council of Ministers adopted the Resolution No. 757 which decreased the list of the goods in regard to which minimum export prices are fixed from 29 to 12.
5. On June 25 the President of the Republic of Belarus approved Edict No. 331 which is aimed at development of equity market. The Edict contemplates that the accounting of rights to securities, issued by Belarusian residents, can be carried out by non-residents; certain limitations in regard to the activity of depositaries are abandoned (the right to act as broker, to own shares). The Edict also introduces the obligation of the emitter, executive officials of the emitter and other persons, which have access to confidential
6. The President of the Republic of Belarus approved the Decree No. 8 of June 26, 2009 which introduces certain changes to the regulation of privatization. The Decree provides for the pre-emptive rights of the emitter to purchase the shares, sold by its shareholders and also provides for additional method of disposal of shares, which are still subject to moratorium – sale to other shareholders (save for open joint stock companies).
7. On June 29, 2009 the International monetary fund made decision to increase the amount of credit program stand-by for Belarus up to USD 3,52 biliions, i.e. approximately for USD 1 billion, and also approved the immediate transfer to Belarus of the second tranch in the amount of USD 679,2 millions. One of the conditions of the program, agreed by Belarus and IMF, is the establishment of a special privatization agency and adoption of new legislation in this sphere.
