Belarus: Economic and Trade Overview

Updated: June 1999

General Information

Geography and Size: Located in the European part of the former Soviet Union, Belarus is a landlocked country bordering Russia, Ukraine, Poland, Lithuania, and Latvia. With land area of 80,154 square miles, Belarus is slightly smaller than Kansas.

Population: 10.5 million (1995 estimate); 77.9 percent are ethnic Belarusians; 13.2 percent are Russians; 4.1 percent are Poles; and 2.9 percent are Ukrainians.

Language: Majority of the population speaks Russian. Belarusian is also widely spoken.

Currency: Belarusian ruble (BRB) is the official currency since May 1992. The official exchange rate was about BRB 229,000 to $1 on March 1, 1999.

National Government: The Belarusian government is composed of four levels: the republican government; six oblasts (provinces); rayons (districts) and cities directly under oblasts; and towns, villages, and settlements that make up the districts. The current president, Alexander Lukashenko, was elected in 1994 for a five-year term.

Political Background: Belarus declared its independence from the Soviet Union on July 27, 1991. Since then, the country has continued to pursue greater economic and other integration with Russia (see below for details).

Alexander Lukashenko was elected as Belarus's first president in July 1994. Since then, president Lukashenko has taken several steps to create closer political, economic, and military links with Russia. The most prominent measure was the signing of a new Belarus-Russian Union Treaty on April 2, 1997. The agreement provides for close coordination of foreign, military, and economic policies between the two countries, including freedom of movement of its citizens, right of residency, property ownership, and participation in local elections. Exactly a year earlier, a treaty on the formation of the Community of Belarus and Russia declared similar goals, including measures to harmonize customs, labor, energy, tax, and investment policies in the two countries. Majority of provisions of both treaties have not been implemented. Other integration efforts with Russia, including a Customs Union involving Kazakhstan, Kyrgyzstan, and Turkmenistan, have bogged down in problems.

In November 1996, Belarus went through a major constitutional crisis caused by president Lukashenko's holding a binding referendum on a new constitution extending his presidential term to 2001 and giving him near absolute power and control over the parliament and the courts. The referendum was widely considered to be undemocratic and flawed.

Following the flawed referendum, worsening human rights problems, and the lack of significant market reforms, the U.S. Government announced the suspension of all U.S. Government-funded assistance to the government of Belarus and state-run institutions. This suspension includes a travel ban on Belarus government officials at the deputy- minister level and above. The U.S. Government also advises potential U.S. investors to seek trade and investment opportunities in neighboring NIS countries due to the high risk of doing business in Belaurs.

Recent Economic Performance

Gross Domestic Production (GDP): There are conflicting claims about Belarus economic performance for 1998. According to the Belarus Ministry for Statistics and Analysis, the country GDP grew by more than 8 percent to an estimated $49 billion, as compared with 1997. Production output by major industry sectors was also reported to have increased by 11 percent. Other economic observers point out that while there was an increase in the industrial production, it was at the cost of soaring volume of unsold industrial goods stocked in enterprises' warehouses. In January 1999, for example, an estimated 85 percent of production output remained unsold.

Inflation: In 1998, a monthly inflation rate average 3.8 percent until August. Following the Russian ruble crash, however, monthly inflation rate jumped to more then 17 percent. Year-end inflation was recorded at 181 percent. Inflation recorded in January of 1999 also remained high at over 16 percent for the month.

One of the chief factors in the rising inflation rate was the collapse of the Belarus ruble (BRB) from BRB 31,000 to $1 at the beginning of the year to BRB 106,000 to $1 by the end. Belaurs's currency devaluation followed that of Russia's at the end of August. The Belarus ruble devaluation continues into the new year. At the end of February 1999, the exchange rate was BRB 229,000 to $1.

Foreign Trade: According to the Foreign Ministry, Belarus's foreign trade turnover totaled $15.5 billion in 1998, down by 3 percent from the previous year. Exports accounted for an estimated $7 billion and imports $8.5 billion. Some 60 percent of Belarus's trade is done with Russia, as much as half in barter deals. Recent trade data indicate that Belarus exports to Russian shrank by as much as 17 percent after the Russian August crises and imports fell by 19 percent.

Major Belarusian exports included vehicles (16.3 percent), machinery (12.8 percent), chemicals (12.5 percent), textile (11.5 percent), and metalware (9.2 percent). Principal imports were energy resources (24.7 percent), machinery and equipment (16.4 percent), metalware (12.6 percent), foodstuff (11 percent).

Industrial Profile

Compared to other Newly Independent States, Belarus has a relatively well developed and a diversified industrial profile. Main industrial activities in Belarus include: machine building, electronics, chemicals, light industry, defense-related products, and prefabricated construction materials. Belarus is also a major producer of trucks, tractors, metal-cutting machinery, electrical motors, household appliances, wood products chemical fibers and threads. Belarus imports between 60-70 percent of raw materials, mostly from Russia, need for the production of finished industrial goods.

According to the Belarus Industry Ministry, the financial crisis in Russia and the rise in producer prices have forced Belarus companies to rely more and more heavily on barter as their primary mode of trade with Russia and the other NIS countries.

Energy Profile

Oil: Belarus has a sizeable refining capacity for oil and gas and is an important transportation route for energy exports from the NIS to elsewhere in Europe, but the country produces only a small portion of its overall energy requirements. In 1998, for example, Belarus imported an estimated 10 million tons of crude oil (87 percent of total domestic consumption) from Russia.

Gas: Belarus imports its natural gas from the Russian gas monopoly Gazprom. According to industry experts, Belarus's gas debt to Russia amounted to $320 million in 1998. In recent past, Gazprom has repeatedly threatened to reduce gas supplies to Belarus until it starts to receive regular payments. In January 1999, for example, Gazprom has temporarily cut Belarus gas deliveries by 12-20 percent. In April 1999, Belarus negotiated to pay part of its Russian gas bill in deliveries of foodstuff and equipment.

Domestic energy sources consist of crude oil and some peat; production of natural gas is negligible. Recent geological exploration indicates that Belarus may have large deposits of brown coal, but significant investments are needed in order to extract and utilize the reserves. Thermal plants generate some of Belarus's domestic electricity, but the country must import more than 90 percent of its primary energy, most of which comes from Russia.

Agricultural Profile

Agricultural Production: In 1998, Belarus's agricultural production remained virtually unchanged as compared with 1997. However, as a result of poor weather conditions last year, the output of grain fell by 25 percent. The agricultural sector accounts for an estimated 26 percent of the country's GDP and employs approximately 21 percent of Belarus's labor force. Belarus meets all of its own basic food needs with the exception of feed grains, sugar, and vegetable oil. The country's primary agricultural products are livestock, potatoes, barley, rye, flax, and fodder, with livestock contributing 60 percent to agricultural output. Belarus has been a net exporter of eggs, flour, meat, milk, flax, and potatoes. The country also specializes in the production of mineral fertilizers.

The Chernobyl disaster in the neighboring Ukraine has rendered more than 20 percent of the arable land in Belarus unusable. Beyond problems related to Chernobyl, the country also faces other obstacles to agricultural production, including problems with harvesting and processing agricultural products.

Investment Climate*

The investment climate in Belarus is poor due to a lack of checks and balances in the governmental structure and the government's failure to adopt economic reforms. Potential investors should familiarize themselves fully with the existing trade and investment risks before deciding to pursue business opportunities in Belarus. Virtually all governmental power is concentrated in the hands of the executive branch and there is no comprehensive system of laws regulating everyday business matters, and business/economic statistics are often unreliable. The president encourages investors to rely on his "personal" guarantee, but American investors have reported that promises made to them personally by the president have not been fulfilled. Laws that do exist, particularly those concerning taxes and customs, have often been arbitrarily enforced. The judiciary is not independent.

Belarus lags behind all its neighbors in market reforms. Privatization has generally been limited to small-scale objects; price controls are imposed on many products, including imports; modern financial instruments are practically unknown; and the difficulty in converting the Belarusian ruble to hard currency is seriously hampering western traders and investors.

The government's regulatory policies are not transparent. According to anecdotal evidence by persons doing business in Belarus, it is not so much existing law that makes foreign investors uncertain and cautious. Rather, it is the lack of consistency and compatibility of the existing legislation with numerous presidential decrees that often appear unexpectedly and require that investors change their policies overnight. This state of affairs is exacerbated by inefficient bureaucratic procedures. There is evidence that government officials often give inconsistent or contradictory advice, fail to answer questions clearly, and fail to take responsibility for their actions.

Tax laws greatly impede investment. As a general rule, the tax rates are high and are applied to income before deduction of legitimate business expenses.

* This section is excerpted from the "1998 Investment Climate Statement for Belarus," and "Belarus: An Assessment of Recent Economic Policies" prepared by the U.S. Embassy in Minsk, Belarus.

Privatization Profile

Since 1994, Belarus has made little progress toward economic reforms, including privatization of state enterprises. The country was among the last ones in Europe to legalize privatization. In 1993 the parliament passed a voucher program whereby each citizen would receive a non-transferable voucher, valued at the individual's years in the work force.

The initial privatization program planned to begin with the retail sector (small businesses, restaurants, stores) and outlined three basic procedures for privatizing state property: converting to employee ownership, converting to a joint stock company, and selling (auctioning) an enterprise. A number of enterprises, including defense operations, alcohol, and fuel distillation firms, and many companies involved in transportation are not subject to privatization.

Estimates put the number of privatized enterprises at around 10 percent of all Belarus enterprises. Privatization was put on hold at the end of March 1995, when president Lukashenko suspended the operation of investment funds responsible for collecting and carrying out voucher bids. Only some of the suspended investment funds were later permitted to renew their activities.

In early 1996, president Lukashenko issued an edict on privatization which outlines procedures for denationalizing and privatizing enterprises and the necessary conditions for Belarus citizens to obtain shares of state property.

Land cannot yet be privately owned by Belarus citizens, with a very few exceptions; small tracts of land can be owned for gardening, housing, and farming (up to 2.5 acres). According to June 1993 law "On Land Ownership," foreign citizens may not own land, but both foreign and Belarus citizens may lease or be granted the right to use land for up to 99 years. Foreign investors can buy state or communal property as long as they have the permission of the Ministry of State Property or the local council for communal property, respectively. In Belarus's transitional economy, identifying and confirming property ownership and rights remains difficult.

Regulations on Registration of Businesses*

In September 1998, registration of all businesses (including individual entrepreneurs) was suspended in Belarus on the grounds that the existing registration procedure was excessively liberal and gave too much freedom to businesses. Following six months of heated debates, president Lukashenko issued an Edict # 11 (March 16, 1999), that establishes new, much more stringent registration procedures. Businesses in Belarus (especially private trading companies) have thus become even more vulnerable to unwarranted government intrusions.

When president Lukashenko abruptly suspended registration of businesses in September 1998, no one could legally start a new business from that time on.
There were two main reasons for this action. First, the government of Belarus (GOB) was concerned about the multiplication of what is known in Belarus as "one-day" firms. Such firms were used for one-two dubious transactions (primarily selling/purchasing hard currency) and were closed down a few days later. Second, Belarus' senior tax authorities believed that governmental supervision of private businesses under the existing regime was too loose. For example, they were unhappy that 17 percent of all registered Belarusian businesses either stayed idle or existed only on paper as of September 1998.

Among the new registration regulations that will probably aggravate the already substantial difficulties facing businesses in Belarus are:

-- "limited" limited liability. Liability for corporate debts may be imposed on the founders/owners of insolvent businesses, if a special court (handling economic/business cases) finds them responsible for the insolvency (the nebulous wording gives the court seemingly unfettered discretion to find personal liability);

-- all founders/owners of a new company must present themselves in person to the registering authority when the application is filed;

-- the registering authority may prohibit an applicant from engaging in certain types of business if the ministries of economy and entrepreneurship both approve the restriction;

-- the registering authority may deny an application for a limited liability corporation and require one or more founders to be fully responsible for corporate debts if:

1. one of the founders/owners of the applicant company has violated tax regulations more than once within twelve months preceding registration, or

2. if the applicant company would be involved in a "risky" business. (Note. Though this edict provides no explanation of what "risky" means, experts believe the government wants to hold business people personally liable for the possible bankruptcy and, consequently, "no payment" situation. End note.);

-- registration will be unconditionally denied if an applicant is also an owner/founder of some other business, which owes payments to the central and/or local budget, or has overdue wage payments;

-- registration may be denied if an applicant is already an owner/founder of three or more businesses. This is not applicable, however, to the joint-stocks and production (as opposed to trade) companies;

-- registering authorities may decide to close down a business for any one of a raft of reasons. Court approval is necessary for the closure of businesses with foreign investment, but Belarusian businesses may be closed by administrative fiat. Reasons for closure include:

1. if a business ended up its second (or subsequent) year with losses without providing a reasonable explanation to the registration office and local tax authority;

2. if location of business's management and books is different from the actual location of a business itself;

3. no money was put or withdrawn from business's bank accounts for at least three successive months and no reasonable explanation to the registration office and local tax authority was submitted; and

4. no business was done for at least six successive months and no explanation was submitted.

-- larger minimum charter capital. This requirement is not applicable to businesses with foreign investment. For Belarusian businesses, the equivalent of USD 7,500 as charter capital must be present in order to set up joint stocks and limited partnerships. (Note. Average monthly wage in Belarus is USD 30-40 per month. End note.)

The registration edict requires that all existing Belarusian businesses, private and public, to re register in accordance with the requirements set forth in this edict by January 1, 2001.

Leaders of the independent entrepreneurial associations are very unhappy about the new edict. Mr. Vladimir Karyagin, President of the Belarusian Union of Entrepreneurs, believes that the new edict will:
-- lead to more corruption and extortion, as Belarusian businesses find it increasingly difficult to comply with the ever-more-complex regulations and are constrained to resort to bribery;
-- lower the total number of businesses in Belarus; and
-- enables the authorities to create a "blacklist" consisting of those persons who have run afoul of one or another provision of the law and who would not be permitted to be involved in any business.

Mr. Alexander Kalinin, Deputy Chairman of the Belarusian Union of Tax-Payers, believes that these regulations will "significantly reduce businesses' flexibility, as the edict requires the applicant company to state each of the company's business activity and then requires the business to engage in every one of those activities." Thus, if an application states that the company will offer tours, provide interpreters and sell souvenirs, it must provide all of these services, even if its business experience shows that providing interpreters is the only profitable segment of the business; and
will make investment in the Belarusian economy more risky.

* This section is provided courtesy of the U.S. Embassy in Minsk, Belarus.

Taxes and Duties

Taxes, in particular the value-added tax (VAT), import levies, enterprise taxes, excise taxes, and personal income tax, provide the Belarusian government's with important sources of revenue.

Belarus has formed a customs union with Russia affecting some of the taxes and tariffs applicable to foreign trade and investment. For example, import duties on many commodities were increased by as much as 20%, to bring them in line with Russian levels.

Belarus has not yet fully implemented all of the changes in its tax and customs regimes, especially those unfavorable to Belarusian trade and manufacturing, which are called for by the union and further changes in the country's tax and tariff structures are, therefore, highly likely.

Main types of import taxes include:

Customs Duty. Most goods imported into Belarus are subject to a wide range of customs duties. The duty rate ranges from zero to 30 percent for most goods, but can go up to 100 percent for nearly pure alcohol. This rate is most often calculated as a percentage of the customs value of goods (calculated as CIF--cost, insurance, freight).

Excise Tax. This tax is levied on most imported luxury goods, such as cars, jewelry, alcoholic beverages, and tobacco products.

Value-added Tax. VAT is applied to nearly all goods imported into Belarus. The current rate is 20 percent. For certain food items, agricultural goods, and medicines, the effective rate is 10 percent. VAT is calculated on the total value of the goods, including customs duty and excise tax, where applicable--in other words, after all other charges
have been added to the customs value of the shipment.

Useful Contacts and Addresses

U.S. Embassy in Minsk, Belarus
Ambassador: The Honorable Daniel V. Speckhard
Deputy Chief of Mission: Mr. Randall LeCocq
Political/Economic Officer: Mr. James Boughner Political/Commercial Officer: Ms. Anne L. Carson

Minsk Location: #46 Starovilenskaya
Mailing Address: U.S. Embassy Minsk
Department of State
Washington, D.C. 20521-7010
Tel: 375-172/ 347-761
Fax: 375-172/ 347-853

Embassy of Belarus in the US
Ambassador: The Honorable Valery Tsepkalo
Commercial Counselor: Mr. Sergei Didenko

Address: Embassy of the Republic of Belarus
1619 New Hampshire Ave., NW
Washington, D.C. 20009
Tel: 202/986-1604
Fax: 202/986-1805

Selected List of Belarus Government Officials

President: Aleksandr Lukashenko

Prime Minister: Syarhey Linh
220010, Minsk
House of Government

First Deputy Minister: Vasily Dolgolev
Deputy Prime Minister: Valeriy Kokorev
Deputy Prime Minister: Leonid Kozik
Deputy Prime Minister: Ural Latypov
Deputy Prime Minister: Gennadiy Novitsiy

Ministry of Agriculture and Food:
220031, Minsk
Ul. Kirova, 15
Fax: 172/ 275-388

Ministry of Communications
and Information Technology: Vladimir Goncharenko
220050, Minsk
Prospekt F. Skoriny, 10
Fax: 172/ 260-848

Ministry of Architecture and Construction : Viktor Vetrov
220050, Minsk
Ul. K. Marxa, 3
Tel.: 172/ 272-422

Ministry of Culture: Aleksandr Sosnovsky
220010, Minsk
Ul. Sovetskaya, 9
Fax: 172/ 209-125

Ministry of Defense: Col. Gen. Alexander Chumakov
220003, Minsk
Ul. Kommunisticheskaya, 1
Tel: 172/ 330-352, 273-671

Ministry of Economy: Vladimir Shimov
220000, Minsk
10 Sovetskaya St.
Fax: 172/296-944

Ministry of Education: Vasiliy Strazhov
220010, Minsk
Ul. Sovetskaya, 9
Fax: 172/ 208-057

Ministry of Fuel and Energy:Nikolay Korbut
220677, Minsk
Ul. K. Marxa, 14
Fax: 172/ 298-468

Ministry of Finance: Pavel Dik
220010, Minsk
Ul. Sovetskaya, 11
Fax: 172/ 296-640

Ministry of Foreign Affairs: Ural Latypov
220030, Minsk
Ul. Lenina, 19
Fax: 172/ 274-521

Ministry of Forestry: Valentin Zorin
220039, Minsk
Ul. Chkalova, 6
Fax: 172/ 244-183

Ministry of Health: Igor Zelenkevich
220010, Minsk
Ul. Myasnikova, 39
House of Government
Fax: 172/ 296-297

Ministry of Housing and
Communal Services: Boris Batura
220640, Minsk
Ul. Bersona, 16
Fax: 172/ 200-297

Ministry of Justice: Gennady Vorontsov
220084, Minsk
Ul. Kollektornaya, 10
Fax: 172/ 209-684

Ministry of Natural Resources
& Environmental Protection: Mikhail Rusyy
220855, Minsk
Ul. Kazintsa, 4
Fax: 172/ 260-084

Ministry of Social Security: Olga Dargel
220010, Minsk
Ul. Sovetskaya, 9
Fax: 172/ 296-990

Ministry of State Property
& Privatization: Vasily Novak
220010, Minsk
Ul. Myasnikova, 39
Tel: 172/ 768-178, 205-260

Ministry of Transport: Aleksandr Lukashev
220612, Minsk
Ul. Lenina, 17
Tel: 172/ 27 16 42
Fax: 172/ 271-981

Ministry of Industry: Anatoliy Kharlap
220033 Minsk
Partizansky Prospekt 2/4
Tel: 172/20 61 37
Fax: 172/27 39 24

Selected State Committees

State Committee on Customs
220029, Minsk
Kommunisticheskaya ul, 11
Tel: 172/ 33 23 16
Fax: 172/34 68 93

State Committee on Energy
220084, Minsk
Ul. Karla Marksa 14
Fax: 172/ 229-8355

Other Useful Contacts

Chamber of Commerce and Industry of the Republic of Belarus
Chairman: Vladimir Lesun
220600, Minsk, Prospekt Masherova, 14
Fax: 172/ 29--936
Tel: 172/ 269-937

Belarusian Science and Industry Association
Director of Overseas Economic Relations: Vladimir Sobolev
220030, Minsk, Ul. Lenina, 19
Fax: 172/ 271-529

National Bank of Belarus: Petr Proopovich
220008 Minsk, 20 F. Skorina Ave
Tel: 172/ 274-479, 270-946, 276-431
Fax: 172/ 276-431

Union of Entrepreneurs of the Republic of Belarus
President: Vladimir Karyagin
220050, Minsk, Ul. Internatsionalnaya, 13
Tel: 172/ 271-483
Fax: 172/ 271-596

Union of Cooperatives of Belarus
220034, Minsk, Per. Voyskovy, 12
Tel: 172/ 391-063
Fax: 172/ 391-290

Union of Entrepreneurs and Lessees of Belarus
220079 Minsk, Ul. Bersona, 16
Tel: 172/ 203-114
Fax: 172/ 270-342

Belarus Computer-Aided Business Information System
Director: Leonid Gruzdilovich
220676, Minsk, Masherov, 7
Tel: 172/ 233-495
Fax: 172/ 209-125

National Brokers Guild of the Republic of Belarus
President: Alexander Yelovik
220030, Minsk, K. Marx St., 40
Tel: 172/ 274-075
Fax: 172/ 278-995

Consular Information Sheet (July 6, 1998)

Country Description: Economic and political reform in Belarus has stalled under the current government. Tourist facilities are not highly developed, and many of the goods and services taken for granted in other countries are not yet available. Localized street disturbances relating to political events may occur without warning, most frequently in the capital, Minsk. Bystanders face the possibility of arrest and detention.

Entry Requirements: A passport and visa are required. A visa must be obtained before entering Belarus. Travelers who do not have a visa cannot register at hotels. U.S. citizens residing in Belarus are required to register with the local Office of Visas and Registration (OVIR). Failure to do so can result in fines and visits from local militia. U.S. citizens residing in hotels are automatically registered at check-in. Visa validity dates are strictly enforced; travelers should request sufficient time to allow for delays in arrival and departure. For more information concerning entry requirements, travelers should contact the Belarus Embassy located at 1619 New Hampshire Ave, N.W. Washington, D.C. 20009, tel. (202)986-1606 or the consulate in New York at 708 Third Avenue, 21st Floor, New York, NY, 10017, Tel. (212)682-5392.

HIV Testing Requirement: Any person applying for a visa for a stay of more than three months must present a certificate showing that the individual is HIV negative. The certificate must contain the applicant's passport data, proposed length of stay in Belarus, blood test results for HIV infection, including date of the test, signature of the doctor conducting the test, medical examination results, diagnostic series, and seal of the hospital/medical organization. The certificate must be in both Russian and English and valid for three months from the date of the medical examination and testing.

Medical Facilities: Medical care in Belarus is limited. There is a severe shortage of basic medical supplies, including anaesthetics, vaccines and antibiotics. Elderly travelers and those with existing health problems may be at risk due to inadequate medical facilities. Doctors and hospitals often expect immediate cash payment for health services. U.S. medical insurance is not always valid outside the United States. Travelers have found that in some cases, supplemental medical insurance with specific overseas coverage, which includes air evacuation, has proven to be useful. For further information, travelers may contact the Centers for Disease Control and Prevention's international travelers' hotline at 1-888-232-3228, or their autofax service at 1-888-232-3299, or their Internet site at http://www.cdc.gov.

Crime Information: Belarus has a medium rate of crime and common street crime continues to increase, especially at night and in or near hotels frequented by foreigners. Foreigners, and particularly foreign cars, tend to be targets of crime. Travelers should keep a copy of their passport in a separate location from their original. The loss or theft abroad of a U.S. passport should be reported immediately to the local police and the nearest U.S. Embassy or Consulate. U.S. citizens can refer to the Department of State's pamphlet A Safe Trip Abroad for ways to promote a more trouble-free journey. Additional information on the region can be found in the brochure Tips for Travelers to Russia and the Newly Independent States. Both publications are available from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402.

Currency Regulations: Traveler's checks are not widely accepted in Belarus. Most Intourist hotels accept either American Express or Visa credit cards. In addition, one hotel in Minsk, the Planeta, provides cash from Visa credit cards during business hours. Travelers face arrest if they attempt to buy items with currency other than Belarusian rubles.

Customs Regulations: Belarus' customs laws and regulations are complicated and enforcement is highly arbitrary. It is important to declare all currency and valuable items upon entry to the country. Travelers should ensure that they keep a copy of the customs declaration for presentation at departure. All items which appear to have historical or cultural value, i.e. icons, art, rugs, antiquities, etc., may be taken out of Belarus only with prior written approval of the Ministry of Culture and payment of 100 percent duty. Failure to follow the customs regulations may result in penalties ranging from confiscation of the property in question and/or the imposition of fines to arrest and possible imprisonment.

Ground Transportation: While in a foreign country, U.S. citizens may encounter road conditions which differ significantly from those in the United States. The information below concerning Belarus is provided for general reference only, and may not be totally accurate in a particular location or circumstance.

Safety of Public Transportation: Fair
Urban Road Conditions/Maintenance: Poor
Rural Road conditions/Maintenance: Poor
Availability of Roadside Assistance: Poor

The roads in Belarus range from short stretches of highways where cars and trucks can exceed speeds of 120 km/h to dirt roads where 40 km/h is difficult to sustain. Visible and hidden dangers are profuse, including large potholes, the absence of roadsigns, and lack of service areas. Other hazards include unlit or poorly lit streets, inattentive and dark-clothed pedestrians walking on unlit roads, drivers under the influence of alcohol, and a common disregard for traffic rules. Driving in winter is especially dangerous because many roads are not properly cleared of ice and snow. Driving with caution is urged at all times.

Taxi service is prompt although fares vary greatly and the automobiles themselves are often in poor condition. Buses and trolleys are poorly maintained, unheated, uncooled, and usually crowded.

Aviation Safety Oversight: As there is no direct commercial air service at present, or economic authority to operate such service, between the U.S. and Belarus, the U.S. Federal Aviation Administration (FAA) has not assessed Belarus' Civil Aviation Authority for compliance with international aviation safety standards for oversight of Belarus' air carrier operations. For further information, travelers may contact the Department of Transportation within the U.S. at 1-800-322-7873, or visit the FAA Internet Home Page at http://www.faa.gov/avr/iasa.htm. The U.S. Department of Defense (DOD) separately assesses some foreign air carriers for suitability as official providers of air services. For information regarding the DOD policy on specific carriers, travellers may contact the Pentagon at (703) 697-7288.

Air travel within Belarus is often unreliable, with unpredictable schedules and difficult conditions, including quality of service below Western standards.

Drug Penalties: U.S. citizens are subject to the laws of the country in which they are traveling. Penalties for possession, use, or trafficking in illegal drugs are strict and convicted offenders can expect jail sentences and fines.

Registration and Embassy Location: U.S citizens are encouraged to register at the Consular Section of the U.S. Embassy and to obtain updated information on travel and security within Belarus. The U.S. Embassy in Minsk is located at 46 Starovilenskaya Ulitsa; telephone (375) 172-31-5000.

U.S. Merchandise Trade with Belarus

U.S. Exports to Belarus 1996-1998 Millions of U.S. Dollars % Share % Change HS Description 1996 1997 1998 1996 1997 1998 98/97 Belarus 53 41 30 0.01 0.01 0.00 -25.20 84 MACHINERY 7.061 8.042 6.756 13.31 19.81 22.25 -15.99 24 TOBACCO 5.548 5.691 3.887 10.46 14.02 12.80 -31.71 98 SPECIAL OTHER 12.383 6.395 3.847 23.33 15.75 12.67 -39.84 85 ELECTRICAL MACHINERY 2.465 2.423 3.138 4.64 5.97 10.33 29.51 30 PHARMACEUTICAL PRODUCTS 0.233 7.111 2.811 0.44 17.52 9.26 -60.48 61 KNIT APPAREL 0.000 0.634 2.364 0.00 1.56 7.79 272.89 90 OPTIC,NT 8544;MED INSTR 3.483 1.606 1.827 6.56 3.96 6.02 13.76 87 VEHICLES, NOT RAILWAY 4.267 1.575 0.637 8.04 3.88 2.10 -59.57 39 PLASTIC 0.615 0.274 0.520 1.16 0.68 1.71 89.57 59 IMPREGNATD TEXT FABRICS 0.020 0.988 0.471 0.04 2.43 1.55 -52.38 57 TEXTILE FLOOR COVERINGS 0.000 0.249 0.465 0.00 0.61 1.53 86.90 41 HIDES AND SKINS 0.000 0.472 0.431 0.00 1.16 1.42 -8.65 69 CERAMIC PRODUCTS 0.000 0.000 0.288 0.00 0.00 0.95 ###.## 38 MISC. CHEMICAL PRODUCTS 0.067 0.335 0.267 0.13 0.82 0.88 -20.30 94 FURNITURE AND BEDDING 0.161 0.365 0.253 0.30 0.90 0.83 -30.72 52 COTTON+YARN,FABRIC 0.122 0.035 0.217 0.23 0.09 0.72 517.46 76 ALUMINUM 0.000 0.115 0.188 0.00 0.28 0.62 63.13 20 PRESERVED FOOD 0.075 0.000 0.181 0.14 0.00 0.60 ###.## 96 MISCELLANEOUS MANUFACT 0.018 0.203 0.164 0.03 0.50 0.54 -19.21 56 WADDING,FELT,TWINE,ROPE 0.000 0.006 0.158 0.00 0.01 0.52 ###.## 60 KNIT,CROCHETED FABRICS 0.038 0.131 0.157 0.07 0.32 0.52 19.74 44 WOOD 0.000 0.046 0.129 0.00 0.11 0.43 183.85 09 SPICES,COFFEE AND TEA 0.026 0.000 0.108 0.05 0.00 0.36 ###.## 58 SPCL WOVEN FABRIC,ETC 0.000 0.032 0.097 0.00 0.08 0.32 204.28 43 FURSKIN+ARTIFICIAL FUR 0.008 0.225 0.087 0.02 0.55 0.29 -61.29 51 ANIMAL HAIR+YARN,FABRC 0.000 0.031 0.083 0.00 0.08 0.27 171.04 54 MANMADE FILAMENT,FABRIC 0.465 1.070 0.079 0.88 2.64 0.26 -92.58 27 MINERAL FUEL, OIL ETC 0.035 0.047 0.071 0.07 0.12 0.23 49.76 48 PAPER,PAPERBOARD 0.126 0.266 0.063 0.24 0.66 0.21 -76.46 49 BOOK+NEWSPAPR;MANUSCRPT 0.068 0.134 0.059 0.13 0.33 0.20 -55.79 63 MISC TEXTILE ARTICLES 0.000 0.049 0.057 0.00 0.12 0.19 15.32 34 SOAP,WAX,ET;DENTAL PREP 0.060 0.069 0.055 0.11 0.17 0.18 -20.77 03 FISH AND SEAFOOD 0.000 0.000 0.048 0.00 0.00 0.16 ###.## 62 WOVEN APPAREL 0.087 0.108 0.048 0.16 0.27 0.16 -55.64 55 MANMADE STAPLE FIBERS 0.055 0.061 0.045 0.10 0.15 0.15 -25.55 25 SALT;SULFUR;EARTH,STONE 0.078 0.015 0.040 0.15 0.04 0.13 158.64 95 TOYS AND SPORTS EQUIPMT 0.250 0.075 0.039 0.47 0.19 0.13 -47.99 70 GLASS AND GLASSWARE 0.053 0.036 0.035 0.10 0.09 0.11 -5.11 22 BEVERAGES 3.037 0.126 0.034 5.72 0.31 0.11 -72.99 28 INORG CHEM;RARE ERTH MT 0.059 0.003 0.030 0.11 0.01 0.10 852.88 88 AIRCRAFT,SPACECRAFT 0.013 0.108 0.023 0.02 0.27 0.08 -78.34 33 PERFUMERY,COSMETIC,ETC 0.066 0.145 0.017 0.13 0.36 0.06 -88.03 21 MISCELLANEOUS FOOD 0.268 0.018 0.016 0.50 0.04 0.05 -8.72 73 IRON/STEEL PRODUCTS 0.017 0.005 0.015 0.03 0.01 0.05 182.51 82 TOOL,CUTLRY, OF BASE MTL 0.003 0.040 0.013 0.01 0.10 0.04 -66.79 32 TANNING,DYE,PAINT,PUTTY 0.039 0.000 0.013 0.07 0.00 0.04 ###.## 89 SHIPS AND BOATS 0.000 0.000 0.011 0.00 0.00 0.04 ###.## 53 OTHER VEG TEXTILE FIBER 0.128 0.000 0.010 0.24 0.00 0.03 ###.## 50 SILK;SILK YARN,FABRIC 0.000 0.000 0.010 0.00 0.00 0.03 ###.## 40 RUBBER 0.000 0.087 0.004 0.00 0.21 0.01 -95.81 71 PRECIOUS STONES,METALS 0.010 0.003 0.003 0.02 0.01 0.01 -7.57 68 STONE,PLASTR,CEMENT,ETC 0.018 0.040 0.000 0.03 0.10 0.00 0.00 91 CLOCKS AND WATCHES 0.000 0.009 0.000 0.00 0.02 0.00 0.00 92 MUSICAL INSTRUMENTS 0.045 0.019 0.000 0.08 0.05 0.00 0.00 83 MISC ART OF BASE METAL 0.026 0.047 0.000 0.05 0.12 0.00 0.00 86 RAILWAY;TRF SIGN EQ 0.753 0.000 0.000 1.42 0.00 0.00 0.00 35 ALBUMINS;MOD STRCH;GLUE 0.000 0.016 0.000 0.00 0.04 0.00 0.00 37 PHOTOGRAPHIC/CINEMATOGR 0.000 0.017 0.000 0.00 0.04 0.00 0.00 42 LEATHR ART;SADDLRY;BAGS 0.060 0.000 0.000 0.11 0.00 0.00 0.00 02 MEAT 0.085 0.000 0.000 0.16 0.00 0.00 0.00 10 CEREALS 1.096 0.915 0.000 2.07 2.25 0.00 0.00 12 MISC GRAIN,SEED,FRUIT 0.010 0.000 0.000 0.02 0.00 0.00 0.00 15 FATS AND OILS 0.386 0.081 0.000 0.73 0.20 0.00 0.00 18 COCOA 0.005 0.000 0.000 0.01 0.00 0.00 0.00 23 FOOD WASTE; ANIMAL FEED 8.884 0.000 0.000 16.74 0.00 0.00 0.00 29 ORGANIC CHEMICALS 0.193 0.003 0.000 0.36 0.01 0.00 0.00

U.S. Imports from Belarus 1996-1998 Millions of U.S. Dollars % Share % Change HS Description 1996 1997 1998 1996 1997 1998 98/97 Belarus 52 66 105 0.01 0.01 0.01 59.64 62 WOVEN APPAREL 30.611 43.451 40.053 58.68 65.81 38.00 -7.82 31 FERTILIZERS 4.113 0.607 23.607 7.88 0.92 22.40 ###.## 53 OTHER VEG TEXTILE FIBER 1.452 5.719 11.425 2.78 8.66 10.84 99.76 72 IRON AND STEEL 0.406 1.012 6.876 0.78 1.53 6.52 579.72 55 MANMADE STAPLE FIBERS 0.268 0.778 3.694 0.51 1.18 3.51 374.59 29 ORGANIC CHEMICALS 0.383 1.124 3.308 0.73 1.70 3.14 194.41 28 INORG CHEM;RARE ERTH MT 0.031 0.194 3.014 0.06 0.29 2.86 ###.## 54 MANMADE FILAMENT,FABRIC 0.407 0.806 2.851 0.78 1.22 2.71 253.59 70 GLASS AND GLASSWARE 0.672 1.150 2.601 1.29 1.74 2.47 126.22 84 MACHINERY 0.308 0.542 1.617 0.59 0.82 1.53 198.04 92 MUSICAL INSTRUMENTS 0.695 1.158 1.199 1.33 1.75 1.14 3.49 87 VEHICLES, NOT RAILWAY 6.611 5.782 0.813 12.67 8.76 0.77 -85.94 61 KNIT APPAREL 0.715 0.509 0.687 1.37 0.77 0.65 35.02 90 OPTIC,NT 8544;MED INSTR 0.758 0.557 0.661 1.45 0.84 0.63 18.75 51 ANIMAL HAIR+YARN,FABRC 0.058 0.469 0.483 0.11 0.71 0.46 3.04 57 TEXTILE FLOOR COVERINGS 0.178 0.153 0.413 0.34 0.23 0.39 170.61 40 RUBBER 0.080 0.286 0.376 0.15 0.43 0.36 31.33 44 WOOD 0.930 0.073 0.274 1.78 0.11 0.26 276.92 99 O SPECL IMPR PROVISIONS 0.078 0.065 0.236 0.15 0.10 0.22 261.14 85 ELECTRICAL MACHINERY 0.635 0.503 0.203 1.22 0.76 0.19 -59.65 97 ART AND ANTIQUES 0.179 0.031 0.148 0.34 0.05 0.14 379.47 98 SPECIAL OTHER 0.044 0.047 0.130 0.08 0.07 0.12 177.07 38 MISC. CHEMICAL PRODUCTS 0.230 0.232 0.119 0.44 0.35 0.11 -48.88 49 BOOK+NEWSPAPR;MANUSCRPT 0.047 0.132 0.115 0.09 0.20 0.11 -12.90 39 PLASTIC 0.000 0.001 0.076 0.00 0.00 0.07 ###.## 26 ORES,SLAG,ASH 0.751 0.000 0.076 1.44 0.00 0.07 ###.## 73 IRON/STEEL PRODUCTS 0.001 0.108 0.063 0.00 0.16 0.06 -41.56 25 SALT;SULFUR;EARTH,STONE 0.000 0.000 0.052 0.00 0.00 0.05 ###.## 63 MISC TEXTILE ARTICLES 0.039 0.107 0.046 0.07 0.16 0.04 -56.88 65 HEADGEAR 0.017 0.033 0.031 0.03 0.05 0.03 -5.83 95 TOYS AND SPORTS EQUIPMT 0.054 0.007 0.030 0.10 0.01 0.03 302.23 68 STONE,PLASTR,CEMENT,ETC 0.000 0.000 0.022 0.00 0.00 0.02 ###.## 37 PHOTOGRAPHIC/CINEMATOGR 0.000 0.000 0.021 0.00 0.00 0.02 ###.## 94 FURNITURE AND BEDDING 0.017 0.002 0.019 0.03 0.00 0.02 ###.## 30 PHARMACEUTICAL PRODUCTS 0.004 0.000 0.015 0.01 0.00 0.01 ###.## 71 PRECIOUS STONES,METALS 0.225 0.020 0.012 0.43 0.03 0.01 -39.68 75 NICKEL+ARTICLES THEREOF 0.000 0.057 0.011 0.00 0.09 0.01 -80.57 33 PERFUMERY,COSMETIC,ETC 0.000 0.000 0.006 0.00 0.00 0.01 ###.## 60 KNIT,CROCHETED FABRICS 0.000 0.000 0.005 0.00 0.00 0.00 ###.## 69 CERAMIC PRODUCTS 0.002 0.000 0.003 0.00 0.00 0.00 ###.## 59 IMPREGNATD TEXT FABRICS 0.000 0.000 0.003 0.00 0.00 0.00 ###.## 58 SPCL WOVEN FABRIC,ETC 0.000 0.000 0.003 0.00 0.00 0.00 ###.## 52 COTTON+YARN,FABRIC 0.000 0.000 0.002 0.00 0.00 0.00 ###.## 42 LEATHR ART;SADDLRY;BAGS 0.021 0.000 0.001 0.04 0.00 0.00 ###.## 43 FURSKIN+ARTIFICIAL FUR 0.008 0.000 0.000 0.02 0.00 0.00 0.00 35 ALBUMINS;MOD STRCH;GLUE 0.649 0.059 0.000 1.24 0.09 0.00 0.00 04 DAIRY,EGGS,HONEY,ETC 0.428 0.000 0.000 0.82 0.00 0.00 0.00 14 OTHER VEGETABLE 0.000 0.218 0.000 0.00 0.33 0.00 0.00 22 BEVERAGES 0.000 0.000 0.000 0.00 0.00 0.00 0.00 74 COPPER+ARTICLES THEREOF 0.011 0.000 0.000 0.02 0.00 0.00 0.00 81 OTHER BASE METALS, ETC. 0.006 0.000 0.000 0.01 0.00 0.00 0.00 96 MISCELLANEOUS MANUFACT 0.014 0.002 0.000 0.03 0.00 0.00 0.00 82 TOOL,CUTLRY, OF BASE MTL 0.032 0.009 0.000 0.06 0.01 0.00 0.00 83 MISC ART OF BASE METAL 0.000 0.017 0.000 0.00 0.03 0.00 0.00

Source of Data: U.S. Dept of Commerce, Bureau of the Census

This report is provided courtesy of the Business Information Service for the Newly Independent States (BISNIS)