Guarantees of investors rights and investment protection in Belarus

National treatment

Foreign investors in Belarus enjoy equal treatment with local ones under the Investment Code of the Republic of Belarus which was adopted in 2001 and replaced the Foreign Investment Law of 1991. The Government guarantees equal rights to all investors engaged in investment activity regardless of the form of ownership, as well as equal, discrimination-free protection of the rights and lawful interests of investors.

Stability of legislation

The state guarantees stability of the rights of subjects of investment activities. According to the Investment Code in case Belarusian legislation adopted subsequent to the creation of a commercial organization with foreign investment impairs the situation and business conditions for foreign investors and commercial organizations with foreign investment established with their participation (i.e. in case additional or increased obligations are imposed thereupon or in case of a limitation or suppression of their rights), for a period of five years the legislation in effect at the date of registration of the commercial organization with foreign investment shall be applied to the foreign investor, commercial organization with foreign investment, and/or foreign investments.

Protection of investments

Investments in Belarus are immune from nationalization without consideration, requisition, and measures equivalent to nationalization and requisition in terms of their consequences. Nationalization and requisitioning shall only be possible subject to the timely and full compensation of the cost of the nationalized or requisitioned investment assets and other damages caused as a result of nationalization or requisition.

Compensation payments with regard to nationalized or requisitioned investment assets shall be equivalent to the real value of said assets at the moment immediately preceding the earlier of the nationalization or requisition, or the date of the public announcement on the nationalization or requisition. Moreover, compensation payments to domestic investors shall include interest calculated on the basis of the appropriate currency as quoted by the National Bank of the Republic of Belarus, and compensation payments to foreign investors shall include interest payments calculated on the basis of the LIBOR rate, with respect to the period between the date of nationalization or requisition or the date of the public announcement to that effect, and the date of remittance of the compensation amount.

As of November 2001 Belarus has concluded 42 bilateral investment agreements with following countries: Poland, Vietnam, Finland, China, Germany, Switzerland, France, United States, Great Britain, Sweden, Netherlands, Romania, Iran, Italy, Turkey, Ukraine, Bulgaria, Yugoslavia, Czech Republic, Pakistan, Egypt, Korea, Latvia, Syria, Cyprus, Tadjikistan, Lithuania, Kyrgyz Republic, Moldova, UAE, Israel, Singapour, Cuba, Lybia, Quatar, Austria, Armenia, Mongolia, Lebanon, Macedonia, Croatia and Kuwait.

Guarantees against unlawful actions (inaction) of government bodies and their officials

Investors enjoy the right to appeal in court against actions (inaction) of government bodies or their officials and local self-governance bodies or their officials, as well as regulations issued by the government bodies of the Republic of Belarus or local self-governance bodies, in the event that the said actions or regulations infringe upon the investors' rights or cause them losses or other damages. Damages, including losses incurred as a result of actions by government bodies or their officials and local self-governance bodies or their officials, or as a result of regulations issued by government bodies of the Republic of Belarus or local self-governance bodies, shall be compensated from the appropriate treasury by court order.

Guarantees on the utilization of the results of investment activity

Foreign investors are guaranteed the right, following the payment of all taxes and other mandatory charges as established by the legislation of the Republic of Belarus, to repatriate to locations outside the Republic of Belarus any profits (earnings) received in the Republic of Belarus as a result of investment activity, as well as any proceeds from the full or partial sale of invested assets upon the termination of investment activity.