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THE ESSENTIAL
Energy industry investors promised taxation preferences in Belarus

In Belarus energy industry investors will be offered taxation preferences, First Vice Premier of Belarus Vladimir Semashko said at the IV international investment forum in Mogilev on October 9. In his words, the government has prepared two new energy industry bills meant to encourage investments into the industry. They grant taxation preferences for up to 7 years. Investors are expected to recoup their money within five years and use the remaining two years to develop their companies, said Vladimir Semashko.

 

ALEXANDER LUKASHENKO ORDERS TO LIQUIDATE HURRICANE CONSEQUENCES IN SHORTEST POSSIBLE TIME

President of Belarus Alexander Lukashenko has ordered to liquidate hurricane consequences in the shortest possible time. The task was set forth during the report of Prime Minister of Belarus Sergei Sidorsky on July 17. According to the presidential press service, Alexander Lukashenko was informed on the work being done to liquidate the consequences of a hurricane that took place on July 13-15. The Minsk oblast, one region in the Mogilev oblast and two regions in the Brest oblast suffered from the natural calamity.

More than 800 houses, administrative buildings, schools and hospitals were damaged. The most hurricane-heat area was the Berezina region of the Minsk oblast. Sergei Sidorsky briefed that the communications between the regions were restored in 24 hours.

The President paid special attention to the necessity to restore the houses in the shortest possible time.

More than 2 thousand hectares of forests suffered from the hurricane as well. Additional reserves will be sent to the Emergencies and Forestry Ministries to help bring the forests in order. Alexander Lukashenko set forth a task to clear up felt trees, send timber to the processing companies within two or three months.

The Head of State was also informed on the draft socio-economic development forecast of the country and the draft budget 2009. Sergei Sidorsky noted that the government had already prepared all necessary documents. The growth of the gross domestic product in Belarus is projected at the level of 10-12% in 2009. This year, GDP will total Br123 trillion. The President underlined that the budget is set to orient social issues. The new budget will focus on the development of the healthcare, social infrastructure and education. Budget funds for these purposes will be considerably increased. The resources will be put in the acquisition of medical equipment, high-technology production of medical equipment in Belarus and in social companies. The draft budget envisages the average wages in the budgetary sphere to equal $560 by the end of 2009, tax burden reduction that would keep Br2 trillion in the real sector of the economy.

The President was informed that the harvesting campaign had been launched in the Brest and Gomel oblasts. Sergei Sidorsky underlined that this year good readiness of the agricultural companies would help reach high volumes in the harvesting.

The Head of State was reported on the economic development in H1 2008. According to the Prime Minister, stable economy and budget performance give confidence that this year many indices will be increased as against 2007. In 2008, the industry growth in the country makes up 13%. High-technology industries of the country show good performance in comparison with the neighbouring countries where the growth of the industrial production stands at 3-4%. The country has registered a considerable growth of investments (by more than 23% over the same period last year).

The profitability level will exceed 17% this year. According to Sergei Sidorsky, it is provided by the output of high-quality products that are in high demand abroad. In 2008, the exports growth will make up nearly 60%.

In H1 2008, the inflation totaled 7.3%. The Prime Minister noted that the inflation is influenced by the foreign financial factors. He assured that the government would take all necessary measures to secure stability of the Belarusian economy and minimize the inflation level in the country.

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NEWS
Regions reveal Belarus-Russia cooperation potential

On October 7, Deputy Prime Minister of Belarus Andrei Kobyakov and First Deputy Chairman of Government of the Russian Federation Igor Shuvalov met in the Brest oblast to discuss the issues of further development of the trade and economic relations between Belarus and Russia.

 
Belarus, Ukraine to set up joint ventures in engineering industry

In the near future Belarus and Ukraine intend to set up joint ventures in the engineering industry, First Deputy Prime Minister of Belarus Vladimir Semashko told reporters after the 15th session of the Belarus-Ukraine Intergovernmental Commission for Trade and Economic Cooperation in Kiev on October 7.

Meeting of the Council of Ministers of the Union State

Belarus and Russia should coordinate their efforts in the economic area in the conditions of the global financial crisis, Prime Minister of Belarus Sergei Sidorsky said as he met with Russian Premier Vladimir Putin in the run-up to the session of the Union State Council of Ministers.

 
Trade between Belarus and Ukraine to exceed $5bln in 2008

In 2008, the trade between Belarus and Ukraine will exceed $5 billion, First Deputy Prime Minister of Belarus Vladimir Semashko said. The First Vice Premier is the head of the Belarusian delegation at the 15th session of the Intergovernmental Belarusian-Ukrainian Commission for Trade and Economic Cooperation which is being held in Kiev on October 6-7.

 
Belarus is ready to carry out big projects with participation of European Bank for Reconstruction and Development

Belarus is ready to carry out big projects with the participation of the European Bank for Reconstruction and Development (EBRD), Belarusian Prime Minister Sergei Sidorsky noted during his meeting with Varel Freeman, the EBRD First Vice President.

Austrian capital participates in many key projects in Belarus

Many major projects in Belarus are implemented with the participation of Austrian capital and technologies, Deputy Prime Minister of Belarus Andrei Kobyakov said as he met with Johann Zaks, Director General for Foreign Trade Issues of the Federal Ministry of Economics and Labour of Austria, co-chairman of the Belarusian-Austrian committee on trade and economic cooperation in Minsk on October 2.

Biofuel to be produced in all regions of Belarus

Enterprises producing biofuel will be set up in all the regions of Belarus, Belarusian Prime Minister Sergei Sidorsky told reporters.

Belarus downs export oil duty October 1

On October 1, 2008, Belarus will down the crude oil export duty from $495.9 to $372.2 per tonne. The Council of Ministers issued relevant resolution No 1426 of September 27.

 
Belarusian business and expo centre to open in Kazakhstan

A multifunctional trade and logistics centre as well as administration and business and expo centres of the Republic of Belarus will open in Kazakhstan. Their opening was discussed at the fifth session of the Belarusian-Kazakh trade and economic cooperation commission in Astana. The Belarusian delegation was led by Deputy Prime Minister Ivan Bambiza, the Kazakh delegation — Emergencies Minister Vladimir Bozhko, the press service of the Foreign Ministry told BelTA.

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