Investment Climate in the Brest Region

The Brest Region has great potential for attracting substantial foreign investment.

Thanks to its favorable geopolitical location, the region can become a springboard for bringing export-oriented products to the markets of Russia and the CIS countries.

The region has a large pool of highly qualified labor, which—when progressive Western technologies, forms and methods of work and production management are applied—can ensure a high level of labor productivity.

The Republic has developed clear investment legislation that allows investors to conduct business activities without impediment.
Active work is also underway in the region to ensure the most favorable conditions for the activities of foreign investors. A Regulation on the support of investment activities in the region has been developed and approved.

Priority areas for attracting investment to the region's economy are:
• high-tech and innovative projects;
• export-oriented and import-substituting production;
• production and processing of agricultural products;
• development of roadside service infrastructure;
• development of tourism services.

In recent years the region has accumulated significant investment potential. Over the period 2000–2004 the volume of investment in fixed capital increased 1.6 times.

Sources of investment in fixed capital:
- own funds of enterprises and organizations – 56.7%;
including bank loans – 23.4%;
- funds from the republican and local budgets – 17.5%;
- household funds – 16.9%;
- other sources – 8.9%.

Over the years of operation of joint ventures in the republic and in the Brest region, a certain amount of experience has been accumulated in organizing joint activities with foreign partners and in creating, based on the capabilities of the Brest region, the most favorable economic conditions for them.
The dynamics of attracting foreign capital to the region indicate a steadily growing interest of foreign investors in the region. If in 2002 the region attracted USD 7.3 million in foreign direct investment, then in 2003 – USD 15.8 million, and in 2004 – already USD 32.4 million.

In total, as of January 1, 2005, the region had accumulated USD 121.8 million in foreign investments.

Examples of successful enterprises with foreign investment in the region:
- JV OJSC "Brestgazoapparat" (production of gas and electric stoves);
- JV "Santa Bremor" (production of fish products);
- IE "Inko-Food" (production of meat products);
- JV "Black Red White", JV "Anrex" (furniture production);
- JV "Belkelme" (shoe manufacturing);
- JV "KamSil" (electronics industry);
- many others.

In total, as of January 1, 2005, more than 500 enterprises with foreign investments were registered in the Brest region. The top three countries by number of joint and foreign enterprises are Poland, Germany and Russia. In 2004 the largest share of incoming foreign investment went to industry (83.3%), agriculture (6.8%), and transport (5.1%). Within industry, the most attractive sectors were: woodworking (32.3%), the food industry (31.0%), and mechanical engineering and metalworking (5.4%).