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Investment potential of Belarus

The Republic of Belarus is considered to be one of the most attractive places to invest.  Below there is a list of reasons for this.

1. Strategically favourable location

A company that starts business on the territory of Belarus has a possibility to supply with goods one of the fast-rising and capacious markets of the countries of the EU (505 mln consumers), Russia, Ukraine, Kazakhstan and other CIS-countries (282 mln consumers).

Besides, Belarus is a member of numerous integration associations, including the Eurasian Economic Union of Russia, Belarus, Armenia and Kazakhstan (EEU). All these factors along with favourable geographical location, developed transportation and logistics and manufacturing system of the country enable rapid development of companies in the Eurasian region.

2. Direct access to the markets of EEU countries (Belarus, Russia, Kazakhstan, Armenia)

Today one of the distinct advantages to invest in Belarus is the possibility to trade with the EEU countries.

The Eurasian Economic Union represents:

  • free movement of goods, services, capital and labour movement;
  • the Customs Union of Russia, Belarus, Armenia and Kazakhstan that provides single tax rate;
  • equal commercial opportunities (including the cost of basic energy resources);
  • single rules of technical regulation, single sanitary, veterinary, and phytosanitary regulations;
  • exemption of process equipment, raw materials imported to implement investment projects from import customs duties.

3. Attractive tax and investment environment

Belarus provides foreign companies with a wide range of preferences that should help them to develop and succeed. They include special commercial conditions for doing business on the territory of one of six special economic zones  (0% profit tax for 5 years; 10% VAT), High-Tech Park (both VAT and income tax make up 0% for first 15 years), and the Belarusian-Chinese Industrial Park (income tax for first 10 years is 0% as well). Besides, a company gets an additional possibility to minimize investment costs and tax rates if it does its business on the territory of Belarusian towns (in this case the income tax rate makes up 0% during first 7 years). 

Belarus does its best to create favourable conditions for business. According to the «Doing Business-2015» researches that World Bank has conducted today Belarus strives to make the legislation better and is successful in this. In 2014 Belarus has made one step forward and become 57th country out of 189 in the DB ease of doing business ranking leaving behind Russia and Ukraine.

Country

Ease of doing business

Poland

32

Belarus

57

Russia

62

Kazakhstan

77

Ukraine

96

The Republic of Belarus has the lead among the countries all over the world and takes the 3rd place in the category “property registration” and the 7th place in the category “enforcing contracts”.

4. Highly developed transportation and shipping system

Belarus is considered to be the centre of the Eurasian region due to its geographic location. The fact that the country has a wide road network makes possible almost any way of transportation including railway, car, and air ones. The highways crossing the whole country are the most important elements of the Trans-European Transport Networks. Namely, Belarus is crossed by 2 Trans-European Transport corridors: No. 2 according to the international classification (The International West–East Transport Corridor – Berlin-Warsaw-Minsk-Moscow) and No. 9 (The International North–South Transport Corridor the border of Russia and Finland-Vyborg-St. Petersburg-Vitebsk-Gomel-Ukraine-Moldova-Bulgaria-Greece) with No. 9b branch (Gomel-Minsk-Vilnius-Klaipeda- Kaliningrad).

Every year Belarus carries over 100 mln tones 90% of which are the goods of Russia and the EU. Nevertheless Belarus has not exhausted all the possibilities for transit as for today Belarus uses only 25-40% of real carrying capacity of the corridors.

That is why Belarus is the best connecting-link between CIS and the EU and this is what companies placing on the territory of the country their manufacturing, logistic and sale businesses could use with great profit.

5. Unique conditions for privatization

As the country is interested in stepping up the privatization process, it provides foreign companies special conditions for rapid business development. Today the government possesses nearly 70% of industrial production. Being government property most important national enterprises got timely support from the government that in result has enhanced production capabilities and competitiveness.

Today in order to make national economy more effective Belarus has chosen the policy of “dotted” privatization and is going to develop mutually beneficial cooperation with leading investors.

National Agency of Investment and Privatization together with the World Bank introduces such tools and methods that correspond to foremost world practice. All these enable to create more convenient and clear conditions for foreign companies in Belarus.

6. Highly qualified personnel

Belarusian people are considered to be most hard-working. Moreover, they have quite high standard of professional and basic knowledge. More than 99% of Belarusians have higher, specialized secondary or secondary education. High level of professional training along with developed non-manufacturing and manufacturing businesses allow Belarusians to work almost in all spheres — clothing manufacture, agriculture, bioengineering or developing software.

7. Proper quality of life

The UNO has published the Human Development Report 2014 and produced a list of all countries by Human Development Index where Belarus became 53rd out of 187 countries and had the lead among the countries of CIS. The cost of living, dwelling costs, costs of education and various entertaining events are far lower than in most countries of West and East Europe. Moreover, along with developed infrastructure Belarus managed to save unique eco-environment. That is why in 2014 Belarus got the best eco-index among the CIS countries.