OREANDA-NEWS. August 10, 2009. Ordinance No 10 introduces a multifaceted approach to the work with investors in Belarus, head of the main investment department of the Economy Ministry of Belarus Sergei Trofimovich told reporters commenting on the document on 7 August.

“Ordinance No 10 will expand treaty-making practices to attract foreign and Belarusian investors,” he said. He explained that until the Ordinance was adopted, investment contracts could be concluded only on behalf of the government or authorized agencies, while executive committees did not have the right to do that. Apart from that, a list of objects eligible for privileges and preferences was defined by the government. There were also other nuances that had to be treated on a case-by-case basis.

Ordinance No 10 is a comprehensive document which applies to both national and foreign investors. “This document will tell an investor which agreement he should conclude, at which level and what to do next,” Sergei Trofimovich said. The Ordinance introduces a three-level system for concluding investment contracts with the Republic of Belarus, depending on the significance of the project and the related preferences.

An investment contract can be concluded through a resolution issued by the Council of Ministers of the Republic of Belarus with the approval of the President of the Republic of Belarus if the contract implies the provision of preferences to the investor which are stipulated neither in national legal acts nor in other legal documents issued by the Head of State; by the Council of Ministers if the contract implies the provision of privileges and preferences to the investor which are stipulated in national legal acts or other legal documents issued by the Head of State; by a national state administration body or other state organisation subordinate to the Government, by an oblast regional executive committee, or the Minsk City Executive Committee in cases when no preferences are required for the implementation of an investment project.

Foreign investors usually want to carry out design and construction works simultaneously, obtain land plots without any auctions and be exempt from various taxes. The government used to provide such opportunities, but on a case-by-case basis, by issuing a decree. The adoption of a comprehensive document will help to regulate this process. The Ordinance comes into effect in three months. By that moment the Economy Ministry of Belarus will draft the registration procedure of the investment contracts and other project documents.

This Ordinance sets the rules that make it easier to start investment projects in the Republic of Belarus and identifies investors’ responsibilities in this respect.

Contracts with investors should contain all the necessary information on investment projects, including the object of investment, the place, the amount of funding made available for it, the project deadline. The ordinance stipulates the mandatory conditions for the conclusion of investment contracts and provides for the opportunity to expand them depending on the specific nature of the industry and the investment project.

Taking into account the previous investment projects in Belarus, the Ordinance also stipulates general preferences for projects carried out as part of investment contracts.