Vitebsk Regional Executive Committee

Vitebsk region is located in the northern part of the Republic of Belarus and covers an area of 40.1 thousand sq. km, or 19.3 percent of the territory, with a population of 1.4 million people. It borders Latvia, Lithuania, and the Russian Federation, where special trade conditions apply to certain types of goods. The total length of the region's borders with neighboring states is 933.8 km, including 575.8 km with Russia (Pskov region – 341.8, Smolensk region – 234), 192.2 km with Lithuania, and 165.8 km with Latvia.

Major cities such as Moscow, Saint Petersburg, Riga, Vilnius, Warsaw, and Kyiv are located within 400-600 km of Vitebsk, and their populations are constant potential consumers of products manufactured by the region's enterprises.

The significance of the geographical location is also due to the developed infrastructure of gas and oil pipeline transport, the intersection of major European transport corridors within the region, and the potential for developing comprehensive services for passenger and freight traffic by road, rail, and air.

Vitebsk region is located in the northern part of the Republic of Belarus and occupies 40.1 thousand sq. km, or 19.3 percent of the territory with a population of 1.4 million people. It borders Latvia, Lithuania, and the Russian Federation, where special trade conditions apply to certain types of goods. The total length of the region's borders with adjacent states is 933.8 km, including with Russia – 575.8 km (Pskov region – 341.8, Smolensk region – 234), Lithuania – 192.2 km, Latvia – 165.8 km.

Transport arteries connecting the largest and most developed economic regions of Russia with European countries run through the region. These are two European transport corridors: Crete No. 2 (Berlin – Warsaw – Minsk – Moscow), Crete No. 9 (Helsinki – St. Petersburg – Kyiv – Chisinau – Bucharest). Such major economic centers as Moscow, St. Petersburg, Kyiv, Warsaw, Vilnius, Riga are located at a distance of 400–800 km from the regional center, the distance to the seaport of Klaipeda is 400 km, to the seaport of Ust-Luga in the Leningrad region – 630 km. The economic and geographical position of Vitebsk region is presented in Appendix 10.

The railway junctions of Vitebsk and Orsha have international significance. They also house airports that provide opportunities for organizing cargo and passenger air transportation, and the "Bremeno-Orsha" special economic zone.

Vitebsk region concentrates more than 1/3 of the republican peat reserves (1135 million tons, 52% of which are within protected areas), almost 100% of the explored dolomite reserves, 14% of the republican reserves of construction sands, 35% of the explored reserves of sand and gravel material, 38% of the balance reserves of clay raw materials, including 47% of the developed reserves, and more than 77% of the republican sapropel reserves. A number of mineral water sources have also been identified. Forest resources have significant potential – 39.5% of the region's land fund is occupied by forests and shrubs, the total timber reserves in the region's forests amount to about 1/5 of all Belarusian reserves.

For most types of products, exports account for more than 50% of the manufactured volume (acrylic fibers, organic acids, polyethylene, fiberglass, etc.). In the commodity structure of exports, products of the oil refining and chemical industries, meat and dairy products, and textile products prevail. The main trading partners of the Vitebsk region are Russia, the EAEU countries, and the CIS. The presence of Belarusian manufacturers in the markets of Asian, African, American, and Oceanian countries is expanding. Together with EAEU partners, work is underway to expand access to "far arc" countries' markets by concluding free trade agreements.

Each district of the region has a pronounced export specificity and basic conditions for the implementation of new export-oriented projects.

The investment process is one of the key factors determining the socio-economic development of the Republic of Belarus, its technological progress, and the efficiency of material production.

This explains the increased interest in state instruments for activating the investment process within the framework of economic impact on domestic and foreign investments.

Currently, favorable legal conditions for investors' activities have been established in Belarus.

On July 11, 2024, the updated version of the Law of the Republic of Belarus of July 12, 2013 No. 53-Z "On Investments" (hereinafter referred to as the Law) entered into force.

The Law provides for three mechanisms for implementing investment projects with the provision of benefits and preferences to the investor:

          – investment agreement;

– special investment agreement;

– preferential investment project.

The main benefits and preferences within these mechanisms are provided in terms of taxation, land relations, architecture, and construction.

Also, as a separate mechanism for stimulating the implementation of investment projects in the Republic of Belarus, the right of legal entities of the Republic of Belarus to provide state financial support in the form of budget transfers to reimburse part of the costs for investment projects implemented in certain regions is enshrined.

          In development of the provisions of this Law, Resolution of the Council of Ministers of the Republic of Belarus No. 417 of June 13, 2024 was adopted, which updated the list of priority types of activities (economic sectors) for making investments, and also determined the minimum investment volume by type of activity (economic sector) for the implementation of investment agreements.

Also, in development of the Law, resolutions of the Council of Ministers of the Republic of Belarus have been developed defining the procedures for:

– conclusions, amendments and termination of investment agreements, decisions on including investment projects in the list of preferential investment projects, provision of state financial support in the form of budget transfers to reimburse part of the costs for investment projects implemented in certain administrative-territorial units;

          – interaction of state bodies, organizations for resolving disputes (disagreements) between an investor and the Republic of Belarus, as well as ensuring the protection of the interests of the Republic of Belarus during legal (arbitration) proceedings.

Please note that in connection with the entry into force of the new version of the Law, Decree of the President of the Republic of Belarus of August 6, 2009 No. 10 "On Creating Additional Conditions for Investment in the Republic of Belarus" loses its effect. However, investment agreements concluded up to and including July 10, 2024, remain relevant, and obligations under them (provision of benefits, implementation of investment projects) are fulfilled in accordance with the previously applicable legislation.

By Decree of the President of the Republic of Belarus of 16.01.2009 No. 1 "On state registration and liquidation (termination of activity) of business entities", the procedure for state registration and liquidation of business entities has been simplified.

Since February 1, 2009, a declarative principle of state registration of business entities has been introduced, with the exception of banks and non-bank financial institutions. Registration is carried out on the day of submission of documents, and the list of documents provided for registration has been maximally reduced.

The Decree significantly simplifies the requirements for the constituent documents of business entities, and the requirements for the minimum authorized capital of commercial organizations (except for joint-stock companies, banks, and insurance organizations) have been excluded. The amount of the authorized capital is determined by legal entities independently. When liquidating legal entities and terminating the activities of individual entrepreneurs, the "single window" principle is enshrined in the relationship between the registering body and other state bodies.

The Decree of the President of the Republic of Belarus of 07.05.2012 No. 6 "On Stimulating Entrepreneurial Activity in Small and Medium-Sized Urban Settlements and Rural Areas" defines measures for economic stimulation of entrepreneurial activity in medium-sized, small urban settlements and rural areas, according to which commercial organizations and individual entrepreneurs carrying out their activities throughout Belarus, with the exception of regional cities, Minsk, as well as the cities of Baranovichi, Bobruisk, Borisov, Zhodino, Zhlobin, Lida, Mozyr, Molodechno, Novopolotsk, Orsha, Pinsk, Polotsk, Rechitsa, Svetlogorsk, Slutsk, Soligorsk, within seven calendar years from the date of their state registration:

• have the right not to calculate and pay profit tax (commercial organizations) and personal income tax (individual entrepreneurs) respectively on profits and income received from the sale of goods (works, services) of their own production;
• are exempted from paying state duty for issuing a special permit (license) for the implementation by legal entities and individuals of certain types of activities (including those related to specific goods (works, services)), making changes and/or additions to such a special permit (license), extending its validity period;
• are entitled not to calculate and pay other taxes, fees (duties) (except for value added tax, including value added tax levied on the import of goods into the territory of the Republic of Belarus, excise taxes, stamp and offshore duties, state duty, patent fee, customs duties and fees, land tax, environmental tax, tax on extraction (withdrawal) of natural resources and other taxes calculated, withheld and (or) transferred when performing the duties of a tax agent, unless otherwise provided by this Decree), and deductions to innovation funds formed in accordance with legislative acts;
• are exempted from the mandatory sale of foreign currency received from transactions with non-resident legal entities and non-resident individuals from the sale of goods (works, services) of their own production, including from leasing property.

The conditions for involving unused state property in economic circulation have been determined (Decree of the President of the Republic of Belarus No. 150 of March 29, 2012 "On some issues of leasing and gratuitous use of property", Decree of the President of the Republic of Belarus No. 294 of July 4, 2012 "On the procedure for disposing of state property").

The procedure for the seizure and provision of land plots has been simplified (Decree of the President of the Republic of Belarus No. 667 of December 27, 2007). The adoption of the document significantly reduces the investment risks of persons interested in obtaining land plots, currently associated with the need to prepare costly construction documentation and the possible refusal to provide land plots.

Business entities that have obtained the status of "reliable foreign economic activity participant" have been given the opportunity to import goods for their production needs in a simplified manner and, if necessary, use them immediately in production without customs clearance – the relevant customs procedures will be carried out on an application basis without presenting the goods to customs (Decree of the President of the Republic of Belarus No. 40 of January 28, 2008).

The list of benefits for residents of free economic zones has been expanded, and guarantees of the immutability of the special legal regime of taxation have been provided to them. (Decree of the President of the Republic of Belarus No. 42 of January 28, 2008).

Conditions have been created for reducing the construction period of facilities and developing the material and technical base, procedures in the construction industry have been simplified, and the right has been granted to other developers, along with the Unified Customer Services (UKSs), to carry out the construction of residential premises for citizens using state support for these purposes, which will increase the volume of housing construction for those in need (Decree of the President of the Republic of Belarus of May 15, 2008 No. 277), etc.

PDFSequence of actions for implementing an investment project in construction

• WEBList of land plots for the implementation of investment projects
• PDFProduction sites for the creation of new and expansion of existing production facilities
• DOCList of agricultural organizations of the Vitebsk region for sale to investors (privatization)
• DOCList of land plots offered for the construction of campsites and camper parking lots
• DOCList of investment projects of the Vitebsk region planned for implementation using investor funds

DOCXInclusion of the project in the list of preferential projects

DOCXConclusion of an investment agreement

DOCXConclusion of a special investment agreement