Draft Law on Investments approved in Belarus

The sixth session of the Upper House of Parliament agreed to make amendments to the Law on Investments

According to the Chairperson of the Standing Committee of the Council of the Republic on Economy, Budget and Finance, Tatiana Runets, investments are the key for sustainable development of enterprises, regions and the country as a whole. With this in view, it is extremely important to ensure their positive dynamics on an ongoing basis.

“From January-September 2021, foreigners invested $6.7bn in the real sector of the Belarusian economy – 104.5 percent more than in the same period last year,” Ms. Runets informed, also drawing attention to a high geographical concentration of investors. According to her, Russia, Ukraine and Cyprus account for 70 percent of direct investments at present.

“These statistics show that changes in investment legislation are already needed. We should create attractive conditions – primarily for a strategic investor. In particular, the updated Law on Investments envisages application of a stabilisation clause. According to it, an investor can be provided with guarantees against adverse changes in tax legislation. Compensation for the value of nationalised property created during the investment process is stipulated, as well as the principle of completeness and timeliness of such compensation,” Ms. Runets added.

In addition, the document introduces a kind of limitation period of three years in terms of making claims to investors that affect their rights and legitimate interests. However, this rule does not apply to investors’ illegal actions.