1. Denis Aleinikov, Senior partner Law Group «Argument» Privatization in the Republic of Belarus: opportunities for investors and advisors

2. 1. Establishing of open joint stock company with participation of other founder (not the state) 2. Contribution of investor’s property to the statutory fund of an open joint-stock company and acquisition of follow-on offering 3. Acquisition of a holding of shares of an open joint stock company, owned by the Republic of Belarus, by the investor 4. Acquisition of an enterprise by the investor 5. Acquisition of real estate facilities 6. Other methods (on the basis of a specific legal act) Privatization methods Participation of foreign investors in state property reformation

3. Privatization deals pro rata privatization process: 232 In 2009 232 state unitary enterprises were reorganized in the process of privatization and among them: 2 joint-stock companies2 joint-stock companies were created with the participation of the foreign investor (Belarus/Russia) The other joint-stock companiesThe other joint-stock companies – the state has become the owner of 100 % of the shares

4. The current situation with privatization: Problem or Opportunity?

5. Foreign consultants may act as investment agents of the Republic of Belarus in order to attract buyers for state-owned shares. Foreign consultants may act as consultants of the Republic of Belarus on pre-sale preparation of Open joint-stock companies and sale of state-owned shares. Opportunities for consultants in 2010 Open joint-stock companies which are incorporated with 100% state-owned shares will be added to the list of companies which state-owned shares to be sold on auctions/competitions in 2010, 2011, 2012.. Opportunities for investors in 2010

6. Investment agent of the Republic of Belarus The status of Investment agent was introduced in 2009 (Edict of the President of the Republic of Belarus of 6 August 2009 №413) The tasks of the investment agents: 1. attraction of the investors and support of the investment projects implementation by them in Belarus (including the intermediation in the procedure of privatization); 2.rendering consulting and legal services to the foreign investor. The rights of an investment agent can be granted to the non-residents of the Republic of Belarus (legal entities which perform activity on the territory of Belarus through the establishment of the representative office, as well as individual entrepreneurs and foreign individuals). Advisor of the Government of the Republic of Belarus on the issues of privatization Status of the Advisor of the Government is planned to be introduced in the nearest future. The tasks of the Advisor: 1.rendering of consulting services to the organizations included in the plan of privatization for the purpose of promotion of investment attractiveness; 2.rendering of consulting services on the issues of the distribution of the securities of Belarusian joint-stock companies at the foreign stock markets. It is planned that the rights of an Advisor can be granted to the non-residents

7. Privatization today Today - 24.06.2010 Today - 24.06.2010 there is a tender on the sale of 93,9 per cent of the shares of the joint- stock company “Smolevichi experimental mechanical plant” Till the end of June 2010 Till the end of June 2010 the investment agreement between the Republic of Belarus and the Swiss company Franck Muller on the privatization of the joint-stock company “Minsk clock plant” shall be signed. recently approved for sale: The holdings of shares of the following joint-stock companies have been recently approved for sale: ‘Prodmash’ (Minsk), ‘BGSHA Printing-House’ (Gorky) ‘Bobruisk Machinery Plant’, ‘VolMET’ (Volkovysk), ‘Lida Foundry Engineering Works’, ‘Barkhim’ (Baranovichi) and ‘Rechitsa Textile’. In 2010 it is planned In 2010 it is planned to offer for sale state packages of 159 open joint stock companies: industry 97; building 26; others 36.

8. INVEST IN BELARUS www.argument.by