Location

Belarus is located in eastern Europe, and is bordered by Poland, Lithuania, Latvia, Russia and Ukraine. Although the country is landlocked, it is strategically positioned to serve as a land transit transport corridor between the EU, Russia and Asia.

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Administration

Belarus is a presidential republic, and its main legal framework is a constitution enacted in March 1994 (significant amendments to the constitution were made in 1996 and 2004). The president, along with the Council of Ministers headed by the prime minister, is the main branch of executive, and there is no limit to the number presidential terms that a person can serve. The National Assembly, with two houses – House of Representatives and Council of Republic – is the main legislative branch of the republic, although presidential decrees and orders can often become a de facto source of law.

Labour force

The country's workforce is about 4.7 million. This is split between services (51.3%), industry (34.7%) and agriculture (14%). The nominal gross average pay in 2010 was $530 a month (though in capital city Minsk it was $700). Belarus's literacy rate is at 99.7% and the country ranks 65th in United Nations Development Programme’s 2011 Human Development Index, which is the highest position among Commonwealth of Independent State countries. There are 55 higher education establishments in the country.

Basic data

Time zone: Further-eastern European Time, which is three hours ahead of Greenwich Mean Time.

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International dialling code: +375.

Currency: Belarusian ruble (Rbs), which is divided into 100 kapeykas.

Exchange rate: $1 = Rbs8625.

Language: Both Belarusian and Russian are official languages, though Russian is more widely used.

Population: 9,577,552 (July 2011 estimate, CIA World Factbook).

Economy

GDP: $13,600 per capita (2010 estimate, CIA World Factbook).

Industrial growth rate: 10.5% (2010).

Exports: $25.35bn (2010).

Imports: $34.47bn (2010).

Industries

Belarus has a well developed industrial base, with machinery equipment being one of the main staples of its exports.

Natural resources

Timber, peat deposits, granite, dolomitic limestone, marl, chalk, sand, clay, gravel. Belarus has the third largest deposits of potash ore (a salt used as agricultural fertiliser), after Canada and Russia.

Foreign investments

FDI inflows: $1.35bn (2010).

Membership of regional or global economic organisations: European Economic Commission; United Nations Conference on Trade and Development; World Trade Organisation (observer status); World Customs Organisation; European Bank of Reconstruction and Development; Commonwealth of Independent States; Customs Union of Belarus, Kazakhstan and Russia.

UN agencies: United Nations Industrial Development Organisation; International Monetary Fund; World Intellectual Property Organisation; International Labour Organisation.

World Bank associations: International Bank for Reconstruction and Development; International Finance Corporation; Multilateral Investment Guarantee Agency; International Centre for the Settlement of Investment Disputes.

Sectors: The leading sector for inward FDI in Belarus is financial services, which accounted for 14% of all projects between 2008 and 2011. Manufacturing is the leading business activity, accounting for 25% of all projects between 2008 and 2011.

FDI source markets: Between 2008 and 2011, the top three source markets for outward investment were Russia (26%), Germany (9%) and Austria (7%).

FDI destination cities: Between 2008 and 2011, Minsk, Vitebsk and Mogilev were the main destination cities for greenfield FDI, with a share of 41%, 6%, 4%, respectively.

Investment guarantees

The Investment Code (updated in 2008) is the main legal framework for foreign investors coming into Belarus. Guarantees for investors include: full equality of rights to foreign investors, freedom to repatriate profits outside of Belarus, the right for foreign ownership of property. The Investment Code also provides the right to appeal against any state actions that can be perceived as violating investors’ rights.

Legal entities

Foreign investors can establish legal entities such as: unitary enterprise, limited liability company, superadded liability company, closed joint-stock company and opened joint-stock company

Useful links

Official Website of the Republic of Belarus: www.belarus.by/en/business/investing

National Agency of Investment and Privatization: www.economy.gov.by/en/naip

National Investment Site of the Republic of Belarus: www.invest.belarus.by

Belarusian office of KPMG: www.kpmg.com/by

Sorainen regional law practice: www.sorainen.com

(Sources: fDi Markets, KPMG, CIA World Factbook 2011, Belarusian National Agency of Investment and Privatization )

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