On January 16, Belarus approved the procedure for sale of assets by residents of foreign “unfriendly” jurisdictions. The most critical condition of sale is mandatory fee to the budget of Belarus in the amount of 25% of the asset value. In addition, the asset valuation can only be prepared by state-owned appraisers.

The Regulations, approved by the State Property Committee of Belarus, set up detailed procedural framework for sale of foreign assets in Belarus. Earlier, in October 2023, the amendments to the Presidential Decree “On Additional Measures to Ensure the Stable Functioning of the Economy” introduced basic approval criteria of such transactions - including 25% fee to the national budget of Belarus.

The Regulations of the State Property Committee clarify how the process of selling foreign assets will work. The logic of the regulation is similar to foreign exit regulations in Russia – any sale of foreign asset is prohibited by default and can only be approved as an exemption from the blanket ban – but the procedural framework is rather different.

Specifically, the application should be filed to the regional authorities (regional executive committees or Minsk City Executive Committee). Then, the draft decision is submitted to the State Property Committee. The final decision on the transaction is made by the Government.

This multi-stage approval procedure could pose significant challenges for foreign investors, interested to sell their asset in Belarus. The risk areas are related to payment of the fee to the budget, significant role of supervisory and national security bodies, which can recognize any transaction null and void, non-transparent requirements to the valuation reports, etc.

Please find more details in the memo.