Belarus to ease state control over investments
2012-06-27 17:00:24
There are plans to limit the reach of the government to investment activities and improve investment protection mechanisms in Belarus, Alexei Kuzmich, member of the Permanent Commission for Housing Policy, Construction, Trade and Privatization of the House of Representatives of the National Assembly of Belarus told reporters on 27 June, BelTA has learnt.
On 27 June, Belarusian MPs passed the draft law “Concerning investments” in the first reading. The draft law was presented by Deputy Economy Minister Anatoly Filonov. The document regulates investment activities; it aims to increase investments in Belarus and enhance their efficiency, safeguard guarantees, rights and legal interests of investors and their equal protection.
The developers of the draft law analyzed the existing investment legislation in Belarus, investment laws in other countries, recommendations of the International Finance Corporation and proposals of the task group on improving investment regulations under the aegis of the Foreign Investment Advisory Board of the Council of Ministers of Belarus, as well as remarks and recommendations of government agencies, legal entities and individuals. The developers also took into account the results of the company surveys held by the Economy Ministry in 2011.
“The principle of non-interference of the government was taken from the international practice. Here the government acts as a protector of investors and does not intervene in investment activities. This is of paramount importance for investors. Investors are protected; they have the right to go to court, to third countries. They will know that their investments will not be lost,” Alexei Kuzmich said.
“Bookkeeping will also be amended to comply with international standards; transparency of investments will be enhanced to make all legal acts clear and avoid different interpretations by different agencies,” Alexei Kuzmich added. In his words, many foreign investors are afraid of double interpretation in law enforcement practice.
The draft law determines the scope of reference of government agencies and explains the notions of “investments” and “investors”.
The draft law formalizes the major investing principles – supremacy of law, equality of investors, fair practices and rationality of investment activities, prohibition of arbitrary interference in private business, inviolability of property, unobstructed exercise of rights by investors, restoration of violated rights and legal interests, their judicial protection, transparency of investment regulations. The draft law envisages that Belarus admits the priority of generally recognized principles of the international law.
Investors will enjoy equal property and non-property rights, including the right to entrepreneurship, the right to independent management of their profits (income) and other earnings after paying taxes, duties (dues) and other mandatory payments established by the Belarusian legislation.
The draft law offers significant guarantees for foreign investors, like the right to transfer abroad profits (income) and other earnings received from investment activities in Belarus, the right to receive timely and full compensation of the cost of the property that acts as investment or was created as a result of investment activities and compensation of other losses incurred by forced withdrawal of this property during nationalization.