Belarus Investment Forum in London
The Belarusian Investment Forum will hold in the Church House Conference Centre of London on November 18. The work of the forum will be led by Belarusian Prime Minister Sergei Sidorsky. President of Belarus Alexander Lukashenko has sent his greeting to participants of the Belarus Investment Forum in London. The greeting was read out by Prime Minister of Belarus Sergei Sidorsky. “I am sincerely glad that we’ve managed to attract such a respected business community to the event.
We consider your participation as a token of the growing interest of foreign business in our country and we will support the interest,” says the greeting.
The document reads, the rapid growth of the economy and revenues achieved in recent years, the stable domestic situation, the dynamically improving investment climate, the favourable geographical location, the high scientific, manufacturing and human potential are some of the qualities inherent in modern Belarus.
Belarus guarantees protection of investments, free management of achieved profits, quality service, comfortable and safe stay for investors. The energy, transport, transit and tourism infrastructure, introduction of new technologies in industry and agriculture are unconditional priorities of the Belarusian state and the most profitable areas for investments.
“I am convinced the forum will become the starting point for a range of projects, which look attractive to investors and are meant to develop Belarus’ economy, improve the welfare of its citizens. I wish you fruitful, productive and substantive work,” reads the greeting.
The share of foreign investment will increase to account for 15-20% of the total investments in Belarus in 2010, Prime Minister of Belarus Sergei Sidorsky said at Belarus Investment Forum in London on November 18.
According to him, the Republic of Belarus has been successfully implementing the innovation policy. In the near future over 100 innovation companies will be built and around 400 new high technology and high efficiency manufactures will be created in Belarus.
The Prime Minister of Belarus noted that foreign investments in Belarus have been continuously growing. In 2007 they made up $5.4 billion, or three times up over 2005, 7.5 times up over 2002. This year a good growth rate remains in place too.
The number of companies with foreign capital has been increasing in Belarus. In 2002 there were 2,000 of them. Today there are over 4,000 featuring the capital from 100 countries.
“I would like to reiterate that it is not by chance that our forum is held in London. For the past several years Great Britain has been among the leaders in terms of investments in the Republic of Belarus. Belarus’ major investors include Russia, Austria, Switzerland and the countries,” he said. The representatives of some of them will share their experiences of working in Belarus and also the problems which they sometimes face.
An important factor for potential investment is the fact that in 2007 Belarus was assigned a sovereign credit rating which confirms the stability of the social and economic development of the country. This year, which is difficult for all of us, the international agencies have confirmed the initially assigned rating.
Belarus injects significant funds in the upgrade of the companies, manufacture of new products and searching for new markets. Today Belarusian exports account for 60% of the GDP; the country trades with 180 countries.
“We have been building our economy system relying on the world experience and trying to avoid socially dangerous tendencies. The strategic goal of the Belarusian state is to enhance the level and quality of life of its citizens, to ensure high level of social security and high employment rate,” Sergei Sidorsky said.
The state does not allow criminal capital in the country, takes serious anti-corruption efforts, he added.
The national legislation, first of all, economic laws have been liberalized. “We have set forth a quite ambitious task – to join the top 30 countries with the most favourable doing business conditions. Over 30 enactments have been recently adopted to improve the legislation in different economic areas,” Sergei Sidorsky said.
Belarus, the only country in the CIS, has adopted the Investment Code which is aimed at intensifying the investment activity including the state support and protection of the rights of investors on the territory of the country. The country took unprecedented measures to abolish the procedures of declaring the origin of the capital, guaranteed full return of bank deposits, introduced a five-year moratorium on worsening economic conditions for joint ventures and foreign companies. The investment climate has been considerably improved by the abolishment of the “golden share” rule that was criticized by the international organisations and foreign companies. Time and resources to register and receive a license have been reduced. The principle of the state registration and liquidation of the organisations was adopted. The number of administrative procedures has been considerably reduced. The country amended the legislation related to the land withdrawal and allocation, introduced a unified principle on its auction sales.
In order to attract investments the country offers a set of preferences to foreign investors in free economic zones, small and medium-sized towns, the rural area, the High-Tech Park. The residents of these territories are partially exempted from taxes, customs fees and receive some other privileges.
The measures taken by the Belarusian government were so effective that the country’s achievements were spelled out in the World Bank Doing Business Report 2009.
Partaking in the forum are representatives of such well-known international organisations as the UN, the International Finance Corporation, the European Bank for Reconstruction and Development.
The Belarusian side is presented by the deputies, the authorities of the Administration of the President and the National Bank of the Republic of Belarus, heads of the ministries, concerns, executive committees, Belarusian business circles interested in establishing bilateral mutually beneficial contacts.
The Russian ruble as a regional currency can have a place, Prime Minister of Belarus Sergei Sidorsky said when answering the questions of the participants of Belarus Investment Forum in London.
According to him, the issue was discussed by the Presidents of Belarus and Russia. The governments were given relevant orders to work through this issue.
Sergei Sidorsky informed that at a session of the CIS Council of the Heads of Government in Kishinev on November 4 he discussed this issue with Prime Minister of Russia Vladimir Putin. “I believe that the Russian ruble as the regional currency can have a place,” the Belarusian PM added.
Belarus has given comprehensive answers to all the IMF questions required for getting the loan, said Prime Minister of Belarus Sergei Sidorsky when asked by participants of the Belarus Investment Forum in London.
“The required documents have been presented to IMF experts. The group of Belarusian experts has given comprehensive answers to IMF questions. Now additional matters are being dealt with,” remarked Sergei Sidorsky.
In his words, both Belarus and the European Union need the loan. Money is required to “break through financial clots” brought about by the global financial crisis. The money will be used to support financial streams between economic entities in Belarus and those in Belarus’ trade partners.
Belarus has received the first tranche of a Russian loan. The money will be used for energy payments between Belarus and Russia.
Belarus is mulling over an opportunity to organize an investment forum in the United Arab Emirates, Prime Minister of Belarus Sergei Sidorsky said when answering the questions of the participants of Belarus Investment Forum in London on November 18.
The PM did not rule out a possibility of holding such forum on the American continent, “This continent is of interest to us, and we would not want to lose this market,” Sergei Sidorsky noted.
Accordign to the PM, it is not the venue of the forum that is very important but the fact of organizing of such an event. For example, international economic and investment forums which are held in Belarus are very effective for Belarus too, Sergei Sidorsky said.
The Belarusian Prime Minister urged the business communities of Belarus and foreign countries to interact closer as the cooperation potential is very big in many areas.
Over the nine months of 2008, Belarus received $824 million of foreign investments on net basis, Vice Premier of Belarus Andrei Kobyakov said at the Belarus Investment Forum in London November 18. If in 2004 the volume of foreign investments on net basis in the Belarusian economy totaled $146 million, then in 2007 it made up $1.28 billion.
Andrei Kobyakov said that the amount of direct foreign investments has been increasing: $131 million in 2004, $565 million in 2007, $633 in January-September 2008.
Belarus needs to continue working towards increasing investment attractiveness and improving the investment and tax legislation, the Vice Premier said.
Belarus is taking special measures to reduce the negative impact of the world financial crisis, Vice-Premier of Belarus Andrei Kobyakov said during Belarus Investment Forum. He noted that the state has ensured bank deposits guarantee for the population to prevent the capital outflow from the banking system. The Belarusian Government has addressed the Russian Federation and the International Monetary Fund for loans to support the national economy and financial system.
Andrei Kobyakov underscored that such loans are necessary not as emergency measures to save the economy. The loans serve as a kind of the airbag for the Belarusian financial system.
According to the Deputy Prime Minister, the world financial crisis cannot but affect Belarus. At the same time, the country does not have internal prerequisites for the crisis situations: all possible complications are connected with external threats. Belarus does not have heavy debts, did not allow speculative and criminal capital into the country, the official added.
Watching how the crisis has been developing in the most developed countries with liberal economy, one can notice that during the complicated situation the governments have remembered about the role of the state and took extraordinary measures including the nationalization of banks, the Vice-Premier said.
The WTO is in live negotiations with Belarus, Alejandro Jara, Deputy Director General of the World Trade Organisation, said at the Belarus Investment Forum in London on November 18.
In his words, business should aid the country’s accession to the WTO. “Foreign direct capital can help create conditions for liberalising trade, bringing the country closer to WTO standards,” said Alejandro Jara.
The official remarked, a certain price has to be paid to enter the WTO. It is related to how much a country can liberalise its economy and achieve tasks the WTO sets before member-nations.
Alejandro Jara said, the sooner Belarus joins the WTO, the better because accession requirements are on the rise.
The WTO Deputy Director General also remarked, Belarus has done a lot to improve the investment climate. Forums similar to the London forum will help increase the additional inflow of foreign investments into Belarus.
ITERA believes that the Belarusian economy is attractive to investors, the company’s press service quoted Igor Makarov, Chairman of the Board of Directors, as saying at the Belarus Investment Forum in London.
“Our plans in Belarus are primarily connected with a comparatively new business avenue for us. It is development,” he remarked.
Igor Makarov presented ITERA’s largest project in Belarus — Minsk City. With the project estimated at $5 billion, construction company ITERA-Invest-Stroi is supposed to accomplish it within 12 years.
Minsk City is a super advanced “city within a city” to be built in the centre of the Belarusian capital on an area as large as 318 hectares. There are plans to build 3 million square metres of housing there by 2020 along with social infrastructure, including nine kindergartens and seven schools. Office space is supposed to total 550,000 square metres. A shopping and entertainment centre will occupy 200,000 square metres. Minsk City will have a well-developed transport infrastructure, with all kinds of surface and underground transport available. The project will enable 60,000 Minsk residents to move into new homes.
According to the ITERA Chairman of the Board of Directors, the project is outstanding from the architectural and aesthetic points of view. Ten prominent architect bureaux from various countries participated in the tender for the best architectural concept of Minsk City’s development. The scale of investments in the Belarusian civil engineering industry is the best confirmation of the availability of a favourable investment climate in Belarus, believes Igor Makarov.
Construction of a multipurpose business centre in Minsk’s downtown is another project of ITERA-Invest-Stroi. There are plans to build an apartment house and two skyscrapers there by 2012. The two office skyscrapers will be the city’s highest buildings. The project is evaluated at $650 million.
Igor Makarov said, despite the large scale of the construction project gas business will remain the main priority for ITERA.
Fransabank advises foreign businessmen to invest in the Belarusian economy, Chief Executive Officer of Fransabank Group Adnan Kassar said at Belarus Investment Forum in London. According to Adnan Kassar, despite the global financial crisis some businessmen have “available” capital. He believes that “Belarus is one of the countries this capital should find its way to.”
“Belarus is a very stable country. The government takes a lot of efforts, carries out reforms to improve business climate. We welcome it,” Adnan Kassar said. He also noted that the government of Belarus supports foreign investors on the highest level, offers stable and fast growing market, highly skilled personnel.
Fransabank operates in Belarus in two areas: banking and real estate. Fransa Holding Company and Fransabank acquired a 98.93% stake in the Zolotoi Taler Bank. The move is part of Fransabank’s strategy to expand the presence in promising regional and international markets with the high level of economic and investment potential. The Bank will also provide all round assistance to the arrival of international and private Arab capital to Belarus.
In Belarus Fransabank invests and attracts foreign investments in the construction and real estate, for example, in the construction of a business centre and administrative building, shopping centres with the participation of ABC Shopping Malls.
The top managers of the bank are studying the possibility to finance the construction and modernization of deluxe hotels and entertainment centers in the Belarusian capital. The investment projects of Fransabank and Belarus’ Architect Ltd. to construct office buildings, shopping malls and entertainment centers in Minsk are estimated at $320 million.
“The recent years have seen an upsurge in interest to the Belarusian banking sector on the part of major foreign financial institutions, including Arab ones,” Adnan Kassar said.
“As for the real estate sector, it represents an abundance of opportunities for investors. The tourism business also seems quite attractive. The potential of the agricultural industry is huge, too,” the Chairman of Fransabank added.
One of the reasons for investing in the Belarusian economy is the fact that Belarus was not hit that hard by the global financial crisis. “I am absolutely sure about the success of your country,” the businessman underlined.
Established in 1921, Fransabank is ranked number one on the list of banks operating in Lebanon and is the oldest bank of this country. The bank provides a broad range of retail, commercial, corporate, investment and international banking services to local and international clients. The bank has its offices in France, Algeria, Syria, Sudan, Cuba and Libya.
During the forum, more than 70 investment projects will be presented for its participants. The construction of a plant to produce buses at the Minsk Automobile Plant, the setting up of a production facility to produce flat products at the Belarusian Steel Works, the construction of cascades of hydroelectric stations on the Zapadnaya Dvina and Dnepr rivers, the creation of the Belarusian seaport and other projects will be presented at the London forum.
Organizations of the ministries of industry, energy, architecture and construction, transport and communications, informatization, sport and tourism, agriculture and foodstuffs, the Belneftekhim, Bellesbumprom, Belgospischeprom, Bellegprom concerns will present their projects at the Belarusian Investment Forum in London. The oblast executive committees and free economic zones are expected to attract foreign investors. Belarusian banks will also hold presentations and tell about their investment possibilities.
Taking part in the forum will be representatives of the foreign production, investment and consulting companies, commercial banks and financial organizations which are interested in business development with Belarus.
Speech of Deputy Prime Minister of the Republic of Belarus Andrei Kobyakov at the Belarusian Investment Forum in London
Report
Presentation