BELARUSIAN ECONOMY & TRADE

MINSK, Feb 23 (Prime-Tass) -- The commission for international affairs and relations with the CIS with the lower chamber of the Belarusian parliament, the House of Representatives, has suggested that the Foreign Ministry should revise the participation of Belarus in certain CIS’ agreements signed between 1991 and 1993. The decision was made at a commission meeting Wednesday, Prime-Tass correspondent reported.

Parliamentarians urge the ministry to consider the withdrawal of Belarus from 16 CIS agreements, including the agreement on principles of customs policy of 1992, agreement on coordinated principles of tax policy of 1992, agreement on regulation of the interstate securities market of 1993 and agreement on creation of transnational financial and economic group for maintenance of civil aviation aircraft of 1996.

“If the Foreign Ministry finds out that it is inadvisable to participate in these agreements, Belarus should explain its position to other CIS countries. Some of the deals are not urgent anymore, some of them are not ratified for 5-10 years,” Vadim Popov, the chairman of the commission, said.

He expressed concern that such a situation may repeat in the common economic area of Belarus, Kazakhstan, Russia and Ukraine. “We are forming a regulatory framework of the four countries now, and I am afraid some of the documents might prove worthless when there are many of them,” Popov said.

As of February 2005 the CIS countries signed 1,489 documents, of which 84% came into effect and 16% need ratification or other procedures.

In December 2000 the CIS signed a protocol on the termination of 41 deals, however, only five of 11 signatories have implemented the protocol so far.

Belarus, being the leader in terms of the number of implemented CIS deals, has failed to ratify 18 agreements.

The agreement on the creation of the Commonwealth of Independent State was signed by the heads of Belarus, Russia and Ukraine in the governmental residence of Viskuli, in Belarus, on December 8, 1991. In line with the protocol to that agreement signed in Kazakhstan’s Alma-Ata on December 21, 1991, Azerbaijan, Armenia, Belarus, Kazakhstan, Kyrgyzstan, Moldavia, Russia, Tajikistan, Turkmenistan, Uzbekistan and Ukraine formed the CIS. Georgia acceded to the CIS in December 1993.

Belarus’ exports to the CIS increased 34.2% on the year in 2004 to U.S. $7.296 billion, while imports from the CIS reached $11.806 billion, a rise of 46.7%.

21/02/2005

New Housing Code expected to bring 44 bln rbl of revenues

MINSK, Feb 21 (Prime-Tass) -- The new version of the Housing Code is expected to bring 44 billion Belarusian rubles of revenues to the state budget, Nikolai Chursin, the chairman of the commission for housing policy, construction, trade and privatization of the lower chamber of the Belarusian parliament, the House of Representatives, said during a discussion of the new code Monday.

“We will save money as a result of the redistribution of preferences when providing dwelling,” Chursin said.

The House of Representatives passed after the first reading the new version of the code on December 19, 2001. Since then more than 3,000 remarks have been received. “We managed to take all of them into account. The bill is ready and will soon be submitted to the president as the entity that submitted it for the consideration of the parliament,” the chairman of the commission said.

The new version of the code changes the term of payment for public utilities. “In accordance with the code, payments are to be effected before the 25th of the following month, although some departments proposed cutting this term to the 15th,” Chursin said.

In line with the new code, the housing stock is divided into state and private housing resources. The code sets requirements for housing facilities.

The document defines the rights and duties of citizens and organizations in housing relations, registration of those needing dwelling, regulates the procedure of reconstruction and refurbishing of housing facilities, as well as the procedure of registration and stock-taking of the housing stock.

The bill specifies the authorities of the Housing and Communal Services Ministry in regulation of housing relations.

The new version of the code is to be considered in the second reading during the spring session of the lower chamber, which is to start working on April 4, 2005.

Belarus’ housing relations are now based on the code that came into effect on July 1, 1999. End

17/02/2005

Belarus’ govt introduces licensing of realtor activity

MINSK, Feb 17 (Prime-Tass) -- The Belarusian government has tightened the conditions for licensing realtor [real estate] services in Belarus and banned private entrepreneurs from this business. The government issued the relevant ruling Thursday, according to the Justice Ministry.

There are 220 entities having certificates for realtor services in Belarus, of them 30% are private entrepreneurs, who will lose this business now.

The Justice Ministry attributes the new ruling to the necessity to make the real estate market more transparent and protect the citizens.

To get a license for realtor services the organization is to be the resident of Belarus, have a staff of at least six people, of whom at least three are to be attested by a special commission with the Economy Ministry.

The list of realtor services includes assistance in making, executing and terminating real estate services, deals with real estate, provision of information about demand and supply on the market and execution of documents pertaining to the deals with real estate. End

Number of petitions to Belarus’ econ courts up 10% on yr in 2004

MINSK, Feb 17 (Prime-Tass) -- In Belarus the number of petitions to economic courts increased 10% on the year in 2004 to 44,630, Chairman of the Supreme Economic Court Viktor Kamenkov told a news conference Thursday.

According to him, of the total 1.118 trillion rubles worth of penalties only 739 billion rubles were recovered, including 180 billion rubles recovered by the state.

“We considered only 80% of all petitions, for sometimes they have no grounds,” Kamenkov said.

According to Deputy Chairman of the Supreme Economic Court Alexei Yegorov, the claims regarding the ungrounded nature of customs payments and duties are the most difficult ones. “When considering such cases we often reveal the drawbacks of the customs legislation and relations between Belarus and the CIS, Belarus and Russia,” Yegorov said. The number of cases involving Belarus’ customs agencies rose 79% on the year in 2004 to 104.

“Last year the number of cases connected with confiscation of property declined 23% to 1,234. This category of cases is very difficult, too, as it may result in bankruptcy,” Yegorov said.

He praised the improvement of the bankruptcy legislation, which brought the number of bankruptcy cases down 48% to 621 last year. “To recognize a debtor as a bankrupt it is necessary to have four reasons, including the decision of the economic court on collection of the debt,” Kamenkov said. End

16/02/2005

Belarus’ government tightens control over performance of 113 key cos

MINSK, Feb 16 (Prime-Tass) -- The Belarusian government has established special control over the performance of 113 key companies of the country, in accordance with ruling 128 of the Council of Ministers.

This tightened control is to be carried out by governing agencies, local administrations and state organizations.

The controlling agencies are to submit to the Economy Ministry reports on the performance of chief targets set by the government of the country.

The list of the key companies includes Mozyr oil refinery, Naftan oil refinery, Polimir, Grodno Azot, Grodno Khimvolokno, Belaruskaly, MAZ, MTZ, Gomselmash, BMZ, Yelizovo, Gomelsteklo, Krasnoselskstroymaterialy, Keramin, Borisov medical preparations plant, Nesvizh medical preparations plant and Belmedpreparaty.

The list includes 18 companies with the Industry Ministry, 22 companies with the Agriculture Ministry, 19 companies with the Architecture and Construction Ministry, one company with the state military committee, three plants with Belbiopharm holding, eight companies with Belgospischeprom, 14 companies with Bellegprom, nine enterprises with Bellesbumprom, five companies with Belersursy, 13 enterprises with Belneftekhim and one company with the Gomel Region administration. End

15/02/2005

BELARUS GOVERNMENT INTRODUCES ECOLOGY TAX RATES

(on the information from Interfax)

The Government of Belarus has introduced rates of the tax on using natural resources (ecology tax), the Council of Ministers informed.

The Council of Ministers’ Resolution N118 sets rates of the ecology tax on excavation of natural resources, atmospheric emission of polluting substances, dumping production wastes, geological exploration works, delivery of oil and oil products across Belarus.

The tax on oil production shall be paid at BYR 1,830 per ton, potassium salt - BYR 996, chalk – BYR 108, sand for road construction purposes – BYR 50.6 (per cubic metre), facing stone – BYR 2,050, construction stone – BYR 814, mineral water extracted as drinking water for sale – BYR 3,590, amber – BYR 13,320 (per kilo), gold – BYR 1780 (per gram).

The tax on dumping half-treated wastes shall be BYR 2,570 per cubic metre (below ground level), BYR 207 – 3,500 (above ground level), depending on the content of harmful substances.

To bury a ton of non-dangerous wastes shall cost you BYR 6,390, dangerous wastes – BYR 81,000 – BYR 1,619.9 million depending on the danger level.

The tax on the transit of 1 ton of oil and mineral oil through a pipeline main shall be collected at BYR 10.

The resolution reads, the tax on atmospheric pollutants emitted during construction works carried out with the use of paint and varnish inside and outside dwelling houses, buildings, equipment and vehicles, will be levied on payers who accomplish these works on a for-fee basis.

The tax on the disposal of industrial waste will be levied from payers storing untreated industrial waste. The tax will not apply to pesticides or herbicides that have lost their poisonous properties.

According to the decision of the government, if individual entrepreneurs install or restore gas or sewage clearing facilities as well as automatic pollution control systems, their pollution tax will be reduced every quarter of the year.

10/02/2005

Speaker says new version of Land Code to boost mortgage lending

MINSK, Feb 10 (Prime-Tass) -- The new version of Belarus’ Land Code will give an impetus to the development of mortgage lending, speaker of the upper chamber of the Belarusian parliament, the council of the Republic, Gennadi Novitsky, said during the discussion of the new land code.

“Land is a very important factor in mortgage lending, but land has never been an article of trade in our country. This is why we have a shadow market, and the state receives neither taxes nor profits. We should push land towards market relations faster,” Novitsky said.

The new version of the Land Code will make it possible to use land as collateral to get bank loans. “In many countries this is usual practice, and the faster we introduce the new rules the faster we get rid of the shadow market,” Novitsky said.

He denied the rumors that the new code has been drafted for large cities and will act against the interests of those involved in agriculture. “These issues are urgent both in cities and villages, and they may more important in the villages,” Novitsky said.

In turn, Mikhail Rusyi, the chairman of the lower chamber’s commission for agrarian issues, said it was planned to preserve land property right. “People will own the plots for construction, part-owner units, collective gardening and dacha construction,” he said.

“Land for tillage will have to be rented for the term of up to 10 years,” Rusyi said. At the same time, Rusyi said the MPs would insist on preservation of life land tenure.

Speaker Novitsky also believes life land tenure should not be cancelled. However, according to him, time is needed to fix this provision in the final variant of the code.

Only 15% of Belarus’ land is subject to a full-scale market turnover, this is why it is important to increase the effectiveness of their use. The remaining 85% are not to be sold [fields, forests, etc.]

The current Land Code was adopted on January 4, 1999 and amended on May 8, 2002.

The new version of the Land Code is likely to be considered by the spring session of the House of Representatives on April 4, 2005. End

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