Opinions & Interviews

The IFC took an active part in the preparation of the document. “Experts made the use of the best international practices,” Vyacheslav Zhuk noted. In his words, unlike the present Code the law is more compact.

“It is a step forward in improving the investment climate in Belarus. We hope the law will promote investment in the country’s economy,” the IFC representative said.

Speaking about the new law which is to take effect on 24 January 2014, head of the main department on investments under the Economy Ministry Sergei Vaitekhovsky noted: “Investment activities involve all areas of the financial and economic activity of the investor. That is why the law is focused not on thorough regulation of the investment activity (there is no need in it as there are banking, tax, economic, civil and other codes which are efficient enough) but on strengthening the basic legal framework for investment activity and on securing guarantees, rights and legal interests of investors, their legal protection.”

According to Sergei Vaitekhovsky, the law describes legal principles of conducting investment activities: inadmissibility of arbitrary interference, equality of investors in investment activities, supremacy of the law as well as the protection of infringed rights.

“The law lists exceptions from the regulation sphere, defines and expands the list of investments. We have left this list open,” the representative added.

Another peculiarity of the law on investment is a norm, under which the investor is not limited with the ways of conducting investment activities and types of financing resources. The law does not place restrictions on the volume of investments and forms of business ownership, regulations for setting up the authorized fund, liquidation as well as control over the activity of a commercial organization with foreign investments.

The new law details and expands the rights of investors. For instance, an unhindered transfer of profits from investment activities as well as of other compulsory payments prescribed by the law is envisaged for foreign investors. Investors also have the right to receive land plots (for use, lease, property) in accordance with the Belarusian laws on the protection and the use of lands.

According to Sergei Vaitekhovsky, under the law, investors will be able to protect their rights in national courts as well as in international arbitral bodies, foreign investors – in the International Center for Settlement of Investment Disputes. The present Code does not have such norms.

“With this the law does not regulate the issues related to state financing and state support for investment projects, excludes the direct participation of the state in investment activities,” he added.

According to Sergei Vaitekhovsky, all the abovementioned norms of the law will promote better investment climate in Belarus. In his words, “in H1 2013 net FDI already exceeded $1.5 billion, with the annual target of $2 billion.”