List of most frequently asked questions

A. Investment
1 Which forms of investments by OAO “Mogilevkhimvolokno” into joint venture are accepted: cash, the territory and facilities, machines and equipment or other?

OAO “Mogilevkhimvolokno” can invest into joint venture in a way of production facilities and buildings, utilities, financial funds.

2. What is preferable percent size?

Subject to discussions

3. Are there any restrictions with respect to foreign investments in Belarus?

There are no principal restrictions. Activity of foreign enterprise shall not contravene
legislation of the Republic of Belarus. Protection of investors` rights is guaranteed by the Constitution and the Investment Code of the Republic of Belarus. 
Investors` benefits are envisaged by the Decree of the President of Republic of Belarus of August, 6, 2009 No.10 “On special conditions for investment activities in the Republic of Belarus” and Resolution of Counsel of Ministers of the Republic of Belarus of November, 6, 2009 No.1449 “On realization of the Decree of the President of Republic of Belarus of August, 6, 2009 No.10”.

4. Is it possible that the investor makes an investment in the form of technology license? Or shall the investor make investments in tangible form only?

Investments can be made both in tangible (equipment, financing facilities) and intangible (license, technology) forms.

B. Project site location
1. Is it necessary to construct any facilities for the joint production?

Buildings, facilities, engineering and energy infrastructure are available for the joint production setup.
The need in construction of new buildings will depend on the layout of equipment for the new product manufacture.

C. Organization and personnel
1. Personnel required for the joint production (for manufacture, sales and administrative department)

Depends on the management structure, production capacity and range of products. To be defined upon clarification of the equipment layout, list and quantity of the products, system of product sales. Currently a wide number of qualified specialists is available.

2. Organizational structure of the joint venture

To be developed upon clarification of the production capacity and list of equipment. Management structure is to ensure the manufacture, procurement and sales, accounting and management.

D. Special Economic Zones
1. Detailed information about special conditions for investors in free economic zones

Terms and conditions for the investment projects of FEZ "Mogilev" residents are presented on the web-site www.fezmogilev.com.

E. Other information
1. Are there any qualified international companies which can develop a feasibility study of the project?

OAO "Mogilevkhimvolokno" has an experience of cooperation with the companies PCI (UK), Technimont (Italy) and others.

2. Can the customs union of Belarus, Russian Federation and Kazakhstan influence the activity of the joint production?

Customs union will not have a significant effect on the joint production in case of product sales in the territory of the customs union's countries. In case of export outside the customs union possible variation of tax rates for the products should be considered.

3. Are there any special regulations for accounting in the Republic of Belarus? Are there any regulations for depreciation and amortization?

For maintenance of accounting it is reasonable to engage specialists with the knowledge of the legislation of the Republic of Belarus.