Belarus Warned Investors about Risks because of Russia

In Europe, Belarusian delegation is holding a series of meetings with potential investors, who will take part in debut issue of Eurobonds. As noted in preliminary prospectus of Belarus' Eurobonds, it is expected that the worsening of relations with Russia will have a negative impact on the economy of Belarus.

In particular, it may be resulted by changes of terms of energy supplies to Belarus and the deterioration of the situation with Russian investment, reads the document. «Investing in emerging markets such as Belarus is associated with a high degree of risk, and investors should be particularly careful in their assessment of these risks», authors of the prospectus underline, RBC informs.

Among other risks, which must be taken into account by potential investors, Belarus marks narrow export base of its economy, its dependence on imports, deficit of budget and balance of payments, low foreign exchange reserves, reliance on external funding and changing political, economic, social, legal and regulatory environment.

Belarusian delegation, conducting a series of meetings with investors in London, Frankfurt-am-Main, Munich, Zurich and Geneva, includes Minister of Economy, Nikolai Snopkov, Finance Minister, Andrei Kharkovets, and First Deputy Chairman of the National Bank, Yuri Alymov.

It is assumed that by the end of this year, Belarus will issue Eurobonds cost one billion dollars, and in 2011 — one billion dollars more. The organizers of Belarus’ Eurobonds issue are BNP Paribas, Deutsche Bank, Royal Bank of Scotland and Sberbank of Russia.