Belarus does not get a lot of press attention, but it is a well-kept secret that continues to diversify its business operations on a global basis. This equates to opportunities for foreign investors.
By William Bell

In the heart of Europe sits the Republic of Belarus. It is also located at the heart of trade routes from north to south and west to east. Bordered by Russia, Poland, Ukraine, Latvia, and Lithuania, Belarus has a temperate climate, a wealth of natural resources, a multinational population, direct access to the EU (European Union) and CIS (Commonwealth of Independent States) countries, a strong infrastructure, and a diversifying economy. It is also an avid foreign trader that is currently trading with 206 countries around the world.

Foreign investors will find plenty of opportunities in exports and imports, and in starting businesses to take advantage of Belarus’ location and business opportunities.

High Tech and Anxious to Accommodate Foreign Investors
Like every country, Belarus has its economic strengths and weaknesses.

When the USSR broke up, Belarus became the Republic of Belarus in 1994 with legislative, executive and judicial branches. The approximately 9.5 million residents represent a variety of countries that include Russia, Poland and Ukraine. The official languages are Belarusian and Russian, but English is used as a business language.

The state continues to retain ownership of utilities, mining manufacturing, engineering, transportation, banking, and agriculture. There is an excellent rail and road network and public transport system in a country in which millions of people are urbanites.

Belarus has a well-developed industrial sector that manufactures tractors, agricultural equipment, household appliances, electrical equipment, chemicals, timber, textiles, radio electronics and automotive. Belarus has six regions that are free economic zones that offer a number of tax benefits. The government is also currently working on a new economic zone China-Belarus industrial park called Great Stone that will convey tax and customs privileges to companies doing business in the zone. Minsk is the capital city and has a Hi-Tech Park that offers tax concessions and other benefits to technology companies; the park currently has a large number of software development businesses.

Foreign companies can participate in the growth of the Belarus economy in many ways. One is to buy export items like engineering products, chemical products and agricultural products.

However, its location makes it extraordinarily attractive. Setting up a business in Belarus gives the business access to large markets in the European Union, Russia, Kazakhstan, Ukraine and many others. Belarus has membership in the Eurasian Economic Union of Belarus, Russia, Armenia and Kazakhstan (EEU).

A business established in Belarus gets the automatic right to enter the EEU markets and enjoys a common customs territory; free movement of goods and services, capital, and labor; accessible energy sources; and other advantages.

Hub of Activity
The transportation system in Belarus is a logistics hub for the region. The railways, airlines and vehicle roads crossing the country carry 100 million tons of European cargo across Belarus, yet only a maximum of 40 percent of traffic capacity is used. There is an educated workforce.

Companies can sign investment agreements with the Belarusian government for preferential conditions for investments in hotels, restaurants, recreation, entertainment, food production, chemicals, agriculture, machinery and equipment manufacturing, and chemicals. Special treatment includes easier land transactions and exemption from import duties and VAT on equipment and spare parts importation, to name a few.

There are two ways to set up a foreign company in Belarus. One is as a representative office and the other is as a legal entity. A representative office means a business is operating as a representative for a foreign company. Legal entities include joint stock companies, limited liability companies and unitary enterprises. The unitary enterprise is similar to a sole proprietary legal form in which the owner retains ownership of the assets.

Plenty of Assistance
Belarus has simplified the process for setting up a business, and several agencies can provide assistance. One is the Ministry of Economy's National Agency of Investment and Privatization, a government agency that can help foreign investors in a variety of ways including the selection of investment projects, market research, site selection, and other ways. Other agencies offering a wealth of information and assistance include the Belarusian Chamber of Commerce and industry, the Embassy of the Republic of Belarus in the United States of America, and the U.S. Embassy in Belarus.

Belarus is a colorful country that takes enormous pride in its diversity of culture developed over the past centuries. The cities are filled with colorful buildings, museums, and theaters hosting plays and classical music concerts. In Minsk alone, there are the National Academic Bolshoi Opera and Ballet Theater of Belarus, the Belarusian State Academic Music Theater, and the Maxim Gorky National Academic Drama Theater. Each year a number of festivals are held that celebrate the country's history and arts offering a breathtaking array of colorful costumes, traditional folk dances, music, and art.

The classical nature of entertainment is also reflected in the business culture. As is true in many countries, developing personal relationships is important, and that takes time. Business meetings are usually formal and include a lot of negotiating. However, the people of Belarus are friendly, generous, good humored and always ready to be of assistance.

Though the population is approximately 80 percent ethnic Belarusians, there is a diversity of people in the other 20 percent. The population includes Russians, Poles, Ukrainians, Jews, Roma, Tartars, Lithuanians and Letts.

Read About Opportunities
Foreign companies looking for economies that offer opportunities for expansion should consider Belarus. The government is vigorously working to attract foreign investors as it continues to streamline its business processes.

This is just a brief overview of what the country has to offer. A number of reports provide detailed explanation of the business climate and opportunities in Belarus. Among these is "Doing business in Belarus – January 2017" published by Ernst & Young and the National Agency of Investment and Privatization (china.mfa.gov.by/docs/db_belarus_2017_eng.pdf). Additional information for companies looking for new opportunities in Belarus can be found at www.belarus.by/en/business/companies.