Foreign investment: regional overview

In 2011 Belarus managed to attract only about USD 4 billion of foreign direct investment on a net basis. Meanwhile, the plan for 2011 was USD 6.4-6.5 billion.

To receive further funding from the ACF of the EurAsEC in 2012 Belarus needs to sell state property worth USD 2.5 billion however, apart from oil refineries and Belaruskali there are no other large properties in the country. Therefore, it is reasonable to expect a boost of small and local privatization.

The amount of FDIs attracted to the country in 2011 looks rather satisfactory, even though not quite reaching the projected amounts. At the same time, FDIs by region look very scanty.

It goes without saying that FDI plans in the regions were adopted without any real consideration of opportunities and were of purely mechanical nature. In fact, the FDI plan for 2011 included sales of state enterprises worth USD 2.5 billion and a USD 3-3.5 billion IMF loan, the rest was supposed to add up from the local privatization and loans of corporations and businesses. The IMF refused a loan, Beltransgaz was sold for USD 2.5 billion and Belarus received a loan from the EurAsEC – all that is reflected in the statistics of Minsk city. Lukashenko was mildly discontent with local authorities.

It is unlikely that reduced, compared with 2011, FDI plan will be fulfilled in 2012 by Belarus. In January Belarus attracted USD 67 million of FDI; USD 29 million in the Minsk city; USD 10 million in Minsk region; USD 2 million in Mogilev region; USD 6 million in Grodno region; USD 1 million in Gomel region; USD 12 million in Brest region; USD 2 million in Vitebsk region.

It is likely that in 2012 Gomel and Minsk regions will be responsible for fulfilling the entire plan. In early January Belarusian Steel Works and Svetlogorsk “Khimvolokno” enterprises have become joint-stock companies. There is a plan to incorporate other enterprises, including the flagman of the Belarusian agricultural machinery – Gomselmash.