Updated at 18:07,08-09-2017

Belarus warned foreign investors about corruption risks and weak Belarusian ruble

belsat.eu, rbc.ru

Belarus warned foreign investors about corruption risks and weak Belarusian ruble
Belarus has issued a Eurobond prospectus to warn investors about the risks of its dependence on Russia.

The prospectus lists 15 risk factors that potential investors may face: corruption, external shocks, instability of the Belarusian currency, difficult relations with the EU and the US, the impact of the conflict in Ukraine on the economy.

Next week Belarus will hold meetings with investors in Europe and the US to issue Eurobonds for first time in six and a half years, news agency belta.by learned from the spokesperson of the Finance Ministry Iryna Kamar.

The volume of placement is not yet known. At the end of 2016, Prime Minister of Belarus Andrei Kabyakou announced the release of Eurobonds for the sum of $ 800 million.

Several risk factors, of which the Belarusian Ministry of Finance decided to warn investors, are either directly or indirectly connected with Russia — the largest trading partner and the largest creditor of Belarus, rbc.ru reports.

Among the risk factors are the “revising” of oil and gas agreements, which unleash the current Belarusian-Russian energy conflict.

According to the prospectus, another risk factor is a strong loan dependence on Russia. At the end of 2016, loans from Russia and Russian banks amounted to $ 6.61 billion, or 48% of the public debt of Belarus.

Belarusian government officials have not ruled out the failure of or delays with the construction of the Astravets NPP, which is financed by the Russian Federation. The risks here come from the refusal of Lithuania and Poland to purchase electricity from the Belarusian NPP, which will lead to significant expenditures from the Belarusian budget.