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Lukashenko approves decree #10 to advance investment and introduces liability for investors 2009-08-11

Lukashenko approves decree #10 to advance investment and introduces liability for investors
 
Belarusian President Alexander Lukashenko has adopted by his decree #10 a set of rules for Belarusian and foreign investors to facilitate the startup of investment projects in Belarus and introduced liability of investors for fulfilling their commitments, the press service of the president reported.  
 
Contracts with investors must contain exhaustive information about the entities, volume and period of investment, and liability for non-compliance. Also, general preferences for investors are identified in each investment agreement.  
 
Furthermore, the decree introduces a three-tier system of investment agreements, with classification dependent on the magnitude of the project and extent of preferences.  
 
Investment agreements will be concluded based on a decision of the Council of Ministers approbated by the president in case the agreement offers an investor the preferences not stipulated by any regulatory act or decision of the president; a decision of the Council of Ministers in case the agreement offers an investor the preferences stipulated by a regulatory act; a decision of national authorities, state organization, region administration, Minsk administration if no preferences are offered.  
 
The document enumerates essential conditions of investment agreements and possibilities of imposing additional conditions depending on the industry.  
 
General preferences to investors traditionally include allocation of lands without an auction, gradual execution of the document required to allocate a land plot simultaneous with the construction of facilities and design of further construction operations on that land plot; exemption of import of production equipment and components/spare parts required for the investment project from customs duties and the value-added tax.  
 
Also, investors are exempted from compensatory payments for losses of farm production and transfer or clearance of planted areas in settlements; from the state duty for issuance of job permits for foreign citizens involved in investment projects in the territory of Belarus, whereas the foreign citizens mentioned above are exempted from the state duty for issuance of temporary residence permits.  
 
At the same time, the government of Belarus is entitled to terminate the investment agreement should an investor fail to perform its obligations.  
 
According to the press service, the decree is expected to promote large-scale investment.  
 
The document comes into effect three months after the official publication and is a temporary measure.  
 
The decree does not apply to earlier investment agreements.  
 
Prime-Tass
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