The Investment Forum of the Republic of Belarus was held in London on November 18, 2008 (the United Kingdom of Great Britain and Northern Ireland).
Attending the forum was a governmental delegation led by the Prime Minister of the Republic of Belarus. The delegation also included the chiefs and top-ranking officials of the Presidential Administration of the Republic of Belarus, the Council of Ministers of Belarus, ministries and concerns, state-run organizations and banks and representatives of Belarusian mass media.
The forum was the first specialized event which the Republic of Belarus organised abroad in order to raise the awareness of foreign businessmen and investors about Belarus’ investment opportunities and to find certain foreign partners to attract foreign investment and high technology, establish long-term mutually beneficial business contacts in the strategic sectors of the Belarusian economy.
More than 500 delegates took part in the forum; more than 300 of them were representatives of foreign companies and financial institutions from 35 countries.
A plenary session and thematic meetings were held within the framework of the forum. Moreover, on the day preceding the forum and on the forum day the Prime Minister held meetings, both planned meetings and the meetings that were agreed upon in the course of the forum, with representatives of foreign companies and political circles of Great Britain
About the Plenary Session
The forum was organised in such a way so that potential foreign investors could get familiar with comprehensive and objective information about the business and investment climate of Belarus.
The speeches of the members of the Government and governmental bodies of the Republic of Belarus, who are in charge of certain sectors of the economy, alternated with the speeches of chief executives of the prestigious international organizations and also foreign companies which have gained positive experience of operating in Belarus.
The Prime Minister of Belarus opened the plenary session. He read out a welcome message from the Belarusian Head of State to the participants of the forum and described the social and political situation in the Republic of Belarus.
In his speech Deputy Prime Minister of the Republic of Belarus Andrei Kobyakov described the state and the development trends in certain sectors of the national economy of Belarus (foreign trade, transport and logistics system, innovation and privatisation policy, personnel potential, agricultural and energy industries). He also familiarized the participants of the forum with the system-based measures that have been taken in Belarus to create a favorable investment climate.
More detailed information about the investment climate of the Republic of Belarus was given by the heads of the National Bank of the Republic of Belarus, State Property Committee, State Customs Committee and the Administration of the High-Tech Park.
The speeches of the officials of Belarus were cut to a minimum during the plenary session. The main emphasis was made on the reports of the heads of the international organizations and foreign companies, which have had positive experience of operating in Belarus.
The speeches were delivered by the heads of the UNCTAD, the World Trade Organization, the International Finance Corporation, ABN AMRO (Netherlands) and Raiffeisen (Austria), General Union of the Chambers of Commerce, Industry and Agriculture for Arab Countries, the Confederation of Industrialists of Lithuania, Robert Bosch (Germany), SB Telecom (Austria), Itera (Russia), ATEC (Austria), and Members of Parliament of Great Britain, Lords Ponsonby and Skidelsky.
During the forum ‘the icons’ of the international business, the heads of the international organizations, influential people of Great Britain noted that the investment climate of the Republic of Belarus was attractive and urged businessmen to invest in the Belarusian economy.
Notwithstanding the fact that the plenary session lasted quite long (for five hours), the level of the participants' interest would not decrease during the entire session. Owing to ‘the eloquent and animated’ speeches and discussions, the plenary session was held in an atmosphere of a full-fledged and informational dialogue.
About the Thematic Sections of the Forum
The forum included four thematic sections (Development of the Banks and Financial Institutions; Industry, Petrochemistry and Energy; Development of the Agricultural Industry, Food and Light Industries, Regions, Free Economic Zones, Small and Medium-Sized Business in the Republic of Belarus - the priority sectors of attracting foreign investment).
More than 70 investment projects of Belarusian organizations who are interested in attracting foreign investment were presented in the course of the thematic sessions.
Potential investors showed a big interest in the Belarusian investment projects. Belarusian and foreign companies reached certain agreements to implement joint projects.
For example, the Energy Ministry and Belenergo signed three protocols of intent with European investors and large producers of energy equipment:
An agreement with ALSTOM (Switzerland) was reached to explore various ways of participation of this company in the construction of advanced high-tech heating and power stations, including a coal-fired station in the town of Zelva, a 450MW steam-gas unit in Beloozersk, hydroelectric power stations on the Western Dvina and Dnieper and wind mills;
Kulczyk Holding (Poland) has started working on the joint project to construct a 1,600MW coal-fired power plant in Zelva and necessary infrastructure to transport the electricity generated by this plant to the neighboring countries;
An agreement with CTY GROUP (Czech Republic) was reached to cooperate in power engineering in the construction of high-tech heating and power stations and hydroelectric power stations and also in establishing comprehensive supplies of high-pressure pipeline systems and other equipment necessary for the implementation of other energy projects involving foreign capital.
As far as the industry and petrochemistry are concerned, discussions were held with STEMCOR company (UK) to consider bilateral cooperation for expanding the line-up and increasing supplies of BMZ products. Expansion of the presence of MAZ machines in North Africa was discussed with MAZ PROJECT LTD company.
Negotiations were held with heads of banking and consulting agencies regarding the potential participation in privatisation of enterprises accountable to the Industry Ministry.
Negotiations with Phillips company (Netherlands) regarding setting up domestic production of photodiode products in Belarus continued. An agreement was reached to schedule a visit of Phillips executives to Minsk on November 27-28 for the sake of determining the degree of the company’s financial participation in the project.
Negotiations were held with Barclays Capital company and Global Petrochemical Marketing company (UK). An agreement regarding a visit of representatives of these companies to Grodno Azot with a view to assessing the degree of their participation in implementing an investment programme of the Belarusian company was reached.
Petroholland company (Netherlands) expressed an intention to more closely study the investment project of Belgospischeprom concern “Production of fuel bioethanol at Zhabinka Sugar Refinery”.
Executives of the Brest Oblast Executive Committee held a meeting with OKD Doprava company (Czechia) to discuss the implementation of the investment project “Construction of a modern transport and logistics centre for transhipping at premises of Belterminal company (Brest)”. In elaboration of the meeting held on November 20, 2008 a contract for selling Belterminal shares worth $2.5 million to OKD Doprava was signed.
During the forum the National Bank held meetings with representatives of the world’s leading financial organisations (FRANSABANK, Deutsche Bank, UniCredit and others) regarding the attraction of strategic investors to Belarusian banks.
Representatives of the aforementioned financial institutions expressed an intention to aid Belarus with organising the sale of Belarusian banks, offered consulting aid regarding arranging international assessment of the Belarusian banks and negotiations with potential strategic investors regarding their participation in buying packages of shares of state banks.
During negotiations between Belarusbank and Sumitomo Mitsui bank (Japan) the financing of equipment supplies from Japan to Belarus for Mogilevkhimvolokno was discussed. Taking into account the cost and volume of the supplied equipment the bank suggested arranging intergovernmental negotiations between Belarus and Japan with a view to establishing a limit for Belarus by national export insurance agencies of Japan.
During negotiations with Belagroprombank Sumitomo Mitsui bank (Japan) expressed readiness to additionally consider the possibility of arranging the financing of Belarusian export to certain countries in Eastern Europe and the USA. The financing can be provided for up to six months for Belarus’ largest companies such as Minsk Automobile Plant, Minsk Tractor Works and Belarusian Steel Works.
A report about the Belarusian insurance market met major interest. The report indicated opportunities for insuring risks involved in the implementation of investment projects. Belgosstrakh company received proposals for cooperation in this area from British banking institutions Standard Bank and Fox Pitt Kelton. Representatives of Standard Bank informed about plans to visit Minsk as early as January 19, 2009.
With a view to developing the advertising and information business in Belarus and promoting the country’s image in the international arena, including in sports and tourism businesses, the Sports and Tourism Ministry held negotiations with Buzz TV company, one of the world’s leading television and publishing companies, which has been providing services to state agencies and private institutions for over 40 years.
The proposal to make a 52-minute documentary about ecological tourism and rural tourism in Belarus for posterior broadcasting via the world’s and Europe’s biggest channels BBC, CNN, Discovery and others (the viewership — around 450 million) is worth noting.
Working meetings with representatives of tourism business of England, Italy, Monaco, and France were held. An agreement was reached to arrange fact-finding tours across the Republic of Belarus for mass media and representatives of tourism businesses of these countries in December 2008 — March 2009 was reached.
Negotiations and meetings of the Prime Minister of the Republic of Belarus with foreign political and business circles
The forum was accompanied by several meetings and negotiations of the Prime Minister of the Republic of Belarus with political and business circles of the United Kingdom.
On November 27, 2008 a meeting with members of the House of Commons and the House of Lords of the United Kingdom was held. The Prime Minister of the Republic of Belarus made a report about the country’s economic development, answered questions about the liberalisation of the Belarusian economy, development of the country’s industry, banking industry privatisation.
UK parliamentarians rather thoroughly asked about the reduction of the tax burden on business and in particular measures taken by the Belarusian government to cancel turnover taxes, which testifies to the thoughtful nature of the analysis and interest in processes going on in the Republic of Belarus. Questions regarding the alleviation of consequences of the Chernobyl disaster and recreation of Belarusian children affected by the tragedy were asked.
The dialogue with the parliamentarians had certain political shades. Questions about priorities in relations of the Republic of Belarus with the Russian Federation and the European Union were asked.
It was explained that in the international arena protection of the national sovereignty, rights, freedoms and legal interests of Belarusian citizens are the strategic goal of the Republic of Belarus.
Due to objective reasons Belarus’ partnership with the Russian Federation boasts the highest level. However, Belarus’ interests include the development of full-fledged cooperation with Europe. This is why the Republic of Belarus pursues a multi-vector foreign policy and is interested in mutually beneficial interstate relations with all partners in foreign policy and trade.
After the meeting the parliamentarians expressed the point of view that the stable development of Belarus during the global financial crisis deserves respect and instils confidence that the economic course which Belarus has chosen is the right one.
The talks between the Prime Minister of the Republic of Belarus and Minister of State for Europe at the Foreign and Commonwealth Office, member of the Cabinet of Ministers of Great Britain Caroline Flint focused on the development prospects of the bilateral cooperation between Belarus and Great Britain and the dialogue between Minsk and Brussels.
Considering the big role of Great Britain on the international political arena, the Republic of Belarus views it as a potentially important partner and would like to develop the relations on the principles of equality and mutual benefits. As it was noted during the meeting, the mutual interest in developing economic cooperation predetermines contacts at the inter-agency level. The political will of the two sides to intensify the dialogue will help preserve these contacts and bring the economic cooperation onto a brand new level.
A meeting was held with Shadow Foreign Secretary, Senior Member of the Shadow Cabinet of Great Britain William Hague (the meeting took place on the forum day on November 18, 2008).
Minister William Hague said that the forum was a success with businessmen and also showed the interest in further economic reforms in the Republic of Belarus.
During the meeting the Belarusian side expressed the wish to bring the Belarusian-British relations to the level of economic relations between Belarus and Germany. The Republic of Belarus is ready to take an initiative in trade and economic relations, to continue economic reforms and discuss the problems hampering the development of the partnership relations.
A meeting between the Prime Minister of the Republic of Belarus and Lord Mayor of the City of London Mr Ian Luder took place in the mayor’s office on November 17, 2008.
The sides discussed the issues related to the development and privatisation of the banking and insurance sectors of the Republic of Belarus. The receiving party was interested in the prospects and development opportunities of the consulting services sector in Belarus. In this respect the Belarusian side cited the participation of ABN AMRO in the evaluation of the Beltransgaz assets which evoked a positive response.
Several private meetings with representatives of the business circles were held on November 16-17, 2008.
After getting familiar with the British agricultural and horse breeding firms, the Embassy of the Republic of Belarus to the United Kingdom of Great Britain and Northern Ireland has started exploring the issue of organising a visit of representatives of the horse breeding industry of Great Britain to the Republic of Belarus to start the joint work in horse breeding and development of elite breeds of horses in Belarus.
During a visit to the Harrods shopping centre an agreement was reached to consider mutually beneficial cooperation, including a possibility of selling the Belarusian products (flax linens, alcohol drinks, furniture and others) through Harrods.
The meeting with chief executives of KESKO (Finland) focused on the issues of additional investment in the expansion of the OMA Company trading network in Belarus (construction materials and instruments) to increase the annual trade turnover from EUR 50 million to EUR 150 million during the next five years. The Trade Ministry was given the instructions to consider the issue of increasing the number of OMA stores to three stores in Minsk and to one in every oblast centre.
On the forum day the Prime Minister of the Republic of Belarus met with chief executives officers of twelve foreign companies.
Caterpillar (the USA) expressed the interest in establishing the cooperation with the Minsk Tractor Works (setting up the production of engines for trucks and tractors) and with the Belarusian Automobile Plant (joint sales of heavy-duty vehicles). During the meeting the sides discussed the opportunity of the construction by Caterpillar of a facility to make auto-components in Belarus (currently the company is considering India as a possible venue for the facility).
Navistar (the USA) also expressed interest in the cooperation with the Minsk Engine Works in the setting up of a joint manufacture of engines.
Another company from the USA, ArvinMeritor, showed the interest in the construction of auto-components production (bridge circuit and upper axles) with the annual turnover of $500 million.
Euro Immo Star (Belgium) would like to establish the cooperation in the development of transport logistics in the Republic of Belarus and to attract the world famous air carriers to promote the effective utilisation of the National Airport in Minsk.
Electrawinds (Belgium) has inquired about Belarus’ wind velocity with a view to constructing electric plants running on wind energy, meat production waste and other alternative energy.
Mobina Group (Iran) has offered the real estate projects. The company also showed the interest in purchasing stakes in the Belarusian banks.
The Government of the Republic of Belarus took the proposals from the foreign companies under special control. Every potential investor has been assigned a government body and organisation subordinate to the Government of the Republic of Belarus. The work has been launched to implement the agreements reached during the talks and to ensure that foreign investments and modern-day technology keep coming in the country.
The big interest of the international business community to the investment forum of the Republic of Belarus in London which was held for the first time shows that Belarus has a huge potential to raise foreign investments.
The forum allowed Belarus to establish direct contacts with foreign partners, inform the international community about its investment opportunities. The agreements reached in the course of the forum will help raise additional investments in the innovation and science-intensive branches of the Belarusian economy. One of the main results of the forum was its positive influence on the image of the Republic of Belarus as a reliable business and investment partner.
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