An attractive jurisdiction will boost investment flows to Belarus

MINSK, Dec. 17 (BelTA) — An attractive national jurisdiction will encourage investment flows into the national economy, Belarusian Deputy Economy Minister Anzhelika Nikitina said at a meeting of the Standing Committee on Economy, of the budget and finances of the Council of the Republic of the National. Assembly, BelTA learned from the press service of the Ministry of the Economy.

Anzhelika Nikitina presented the draft laws “On Amendments to the Law on Investments of the Republic of Belarus” and “On Amendments to the Law on Free Economic Zones of the Republic of Belarus”. She pointed out that an attractive jurisdiction will intensify the inflow of investment into the economy.

The Deputy Minister explained the essence of the main amendments to the Investment Law. “One of the most important amendments set out in the bill is to limit the ability to overrule decisions made by government agencies if doing so may cause damage to the investor’s property. A bona fide businessman should not suffer damages due to procedural errors made by officials,” she said.

Another amendment concerns the “stabilization clause” against unfavorable legislative changes, such as the introduction of new taxes or the increase of existing taxes. An important point is that the scale of the “stabilization clause” for investment agreements cannot exceed that of the agreements signed in the Sino-Belarusian industrial park of Great Stone. This requirement was formalized by the presidential directive on the development of relations with China.

“The updated law will formalize the obligation to provide full and prompt compensation to an investor for the seizure of their assets by the state, adjust the conceptual framework, increase the pre-trial settlement period to six months and will introduce other targeted adjustments to bring the document up to standard with global best practices,” said Anzhelika Nikitina.

Improving laws on Free Economic Zones (FEZ) is another area of ​​legislative work. Their performance is increasing faster than the national average: production, income, exports, investments and finally jobs. Therefore, the goal of this legislative effort is to create a more conducive environment for new manufacturing projects.

“The business community, regional administrations, the Minsk City Hall have regularly suggested adjusting the boundaries of the free zone for promising business ideas. It is clear that the shorter the period of coordination and approval, the faster these ideas can take off, so in March this year, at a meeting on the redistribution of powers between the authorities, the head of state gave instructions to transfer these powers to the Council of Ministers. carefully studied the relevant experience of our partners in the UEE where these matters fall within the purview of the government.Accordingly, the rule of obtaining the approval of the President for the inclusion of agricultural and forest land in the free zone is Another rule remained unchanged, namely the limits of the free zone can be extended exclusively for specific investment projects,” said Anzhelika Nikitina.

At the end of this meeting, the Permanent Commission for the Economy, Budget and Finance of the Council of the Republic approved two bills.

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