Economy

Belarusian is one of the most economically developed countries of the CIS (former USSR). The share of industry makes about one third of the national product.

The major industries are machine- and instrument-building (especially automobiles, tractors, agricultural machines, machine tools, bearings), oil mining and refinery, the production of electrical appliances, synthetic fibers, mineral fertilizers, pharmaceuticals, construction materials, light industry, food industry.

An important feature of the national economy is production of finished commodity, most of which are exported.

Belarus has favorable natural conditions for the production of such highly profitable goods as milk, beef, pork, eggs, grain, potato, flax, sugar beet, etc.

Great attention is paid to technical re-equipment of enterprises processing agricultural products and enhancement of the export potential of the agriculture.

67 countries export capital to Belarus. The major foreign investors (as of Q1 2003) are:

1. Switzerland - $47,718 million (17.8%);
2. Virgin Islands (Britain) - $38.117 million (14.2%);
3. Austria - $34.877 million (13.04%);
4. Russia - $34.754 million (12.97%);
5. Cyprus - $19.792 (7.3%);
6. the USA - $8.645 (3.2%);
7. Great Britain - $5.675 (2.1%).

To attract long-term strategic investments, the country introduced a set of guarantees for enterprises using foreign capital. They have the right of free import of foreign assets that will be included in the company’s capital fund. They are also exempt from income tax for three years. There are 6 free economic areas in Belarus.

The Investment Code adopted in 2001 was designed to improve investment climate in the country and clarify the policy of the Belarusian state towards investors. In 2001 the government established the Consultative Council on Foreign Investments, whose members are representatives of foreign companies and international organizations.

The council elaborates and implements policy aimed at the attraction of foreign investments, it also creates the so-called “green corridor” to help foreign investors deal with certain problems. Since 2003 Belarusian enterprises received $0.9 – 1 billion in direct investments in fixed capital. It is also planned to develop the system of insurance against non-commercial risks, to enhance provision of information to foreign investors, to develop legal framework of foreign capital attraction (trans-national companies, international leasing companies, international consortiums, concessions).