Recent legal & business developments in Belarus, March 2011
1. Government of Belarus has approved the plan of privatization objects owned by Belarus for 2011-2013 and plan to transform the republican unitary enterprises into joint stock companies. The applicable decision is provided by the Regulation of the Council of Ministers № 348 dated March 21.
Privatization plan includes 244 business entities, whose shares (shares in statutory funds) are subject to privatization, as well as one Republican Unitary Enterprise. Among the largest JSC, included in the list, are manufacturing enterprises belonging to the Ministry of Industry: JSC "Baranovichi Machine-Tool Plant”, “Borisov tool factory", "Brestmash", "Vitebsk Instrument-making Plant”, “Volmet” (Volkovysk), “Tekhnopribor" (Mogilev). The list also includes stock corporations of the Ministry of Energy, the Minstroyarhitektrury enterprises, transport enterprises of the Ministry of Transport, companies of the “Belneftekhim”, “Belgospishcheprom”, “Bellegprom”, “Bellesbumprom” concerns, ministries of communications and informatization, education, trade and culture.
Plan to transform the republican unitary enterprises into joint stock companies for 2011-2013 includes 134 RUE. Among them there are “Belorusneft” subsidiaries, including RUE "Production Association “Belorusneft” (Gomel) and RUE “Svetlogorsk Production Association “Khimvolokno”.
2. Investment agreement on construction of the yeast plant in Slutsk district is signed. Project, the total cost is estimated at 25 million Euros, involves foreign direct investment. Investor will be the German company Uniferm, its Belarusian partner - JSC "Slutsky Sugar Refinery Complex”. A joint venture Interferm, which will build the plant, was specially created for the project realization.
3. The Czech company Eco Clean Energy will build a waste recycling plant using a plasma reactor in Minsk. Investment contract for the construction of the object was concluded in Mingorispolkom on 16 March 2011. Document was signed by the Chairman of Minsk city executive committee Nikolai Ladutko and the Chairman of Supervisory Board of the Czech company Vaclav Aubreht. The polygon “Trostenetz” is considered as a possible site for the erection of the plant. Facility commission is scheduled in December 2013.
4. Belarus has announced an open international competition to select an investor for the extraction and processing of granite in the region of the Pripyat Polesie (Brest region) and also creation in the region mining and concentrating plant. Tender is held by the Government of Belarus with the support of the National Agency on Investment and Privatization. The required investment amount is estimated at 381.3 million dollars. It is expected to define the winner of the project before the 3rd October, the signing of investment agreement should take place before the end of the year.
5. This year Belarusbank plans to issue Eurobonds in the amount of up to $ 500 million, said the Chairman of the Bank Board Nadezhda Ermakova at the General Meeting of Shareholders of the JSC “Belarusbank”. However, she noted that the bank does not intend to obtain funds at high rates.
6. Refinancing rate has changed. Since March 16, 2011 refinancing rate of the National Bank of the Republic of Belarus has increased by 1.5% and currently stands at 12% per annum.
7. The pharmaceutical market of Belarus increased by 10%. According to the analytical agency Intellix information, the volume of the pharmaceutical market of Belarus totaled 676.4 million dollars last year. That's almost 10% more than in
