EURASIAN CUSTOM UNION&BELARUS JUST THE EXPERIENCE OF A BELGIAN

Ing.Filip VandenbroeleHon. Consul of Belgium to Belarus

Filip A.G. Vandenbroele

°Brugge, 1961 Engineer in biochemistry

food&winetechnology Purchaser for a mayor EU supermarket

group

Since 1993 in CIS« it is easy to become a millionnaire here, but you have to be a billionair first »

EDAH EDA

SOYUZKONTRAKT1993-1998 Dutch-Russian holding Largest food importer in Russia Bush legs & distribution FMCG Tysson foods, Farmland, Land-o-lakes, Unilever,

Herschi cola, Hero, Grolsch, Maple river Responsible for several projects Best Supermarket and C&C ‘96 Pilot store Dutch partner (and me) left on timeRIP 1998

MARKOM Ukraine1998-2000 Wines&Spirits : Bacardi-Martini, Calvet,

Johnnie Walker, Hennessy, Interbrew, Evian,....

Food : Albi, Seeberger, Gundelsheim, dr Oetker, Destrooper

Group of supermarkets & restaurants

huge market share, but did not like to sponsor presidential campaign UA

Komsokol IP Belarus2000-2004 till now Production of garden furniture near

Minsk One of first purchases of state property 200-250 trucks export to Belgium- 100-

150 staff Fast growth of a Belgian KMO after

investment BY

Honorary consul of the Kingdom of Belgium to the Republic of Belarussince 2004

-Belgium representation in Belarus-Link to Embassy in Moscow for Consular affairs-Assistance to Belgian citizens-Humanitarian and cultural exchange-Economical development and relations -Local information source

Voluntary and not paid

http://consulbel.at.tut.by

Honorary consul of the Kingdom of Belgium to the Republic of Belarus

Some activities Exposition Belgian lace in National bibliotheque EU business networking events Friendship fire men and cities DEVE gallery Bruges www.deve-gallery.com Seminars and business talks JCI, Europa college,

rotary, business clubs, VOKA, FIT Sports events FICAC World Association of Honorary consuls All to stimulate economical activities with

Belgium

Activities

Honorary Consul

Obligations to the public

Function not understood by both parties

Expensive hobby Not paid

Free to fill in Prestige & opens

doors Some privileges

and immunities Important

business and social network

To consider Also to consider

Consultbel bvba Our business : start ups, problem solving ,

networking & lobby, local representation in Belarus

References & partners :

www.consultbel.com

Questions & cases Big and small EU compagnies, often in Moscow Main fields: logistics, hypermarkets, pharma,

global brand companies and producers. We are happy to be first guide

But too often problem solving when too late(confiscation, liquidation, incassation, stealing, unclear financial rapporting )

BY unknown EU-Rus neighbour, unfortunately still bad reputation

After visit, always good impression : clean, safe and organized

Belarus

Belarus Population 9,7 million GDP per person 5.330 USD, still small growth Inflation 20% Average salaries increased, but productivity

not Big gabs in salaries 10.000 millionaires, 800.000 BY in Russia World bank & IFC “Doing Business 2013” BY improved now on 58 th place (B 33, Rus

112)

BELARUS

Belarus import & export 50% Rus 50 % EU Import : minerals 41%; machines 9,4%; cars 7,6%;

steel 5,6%; electronics 4,1% Export : minerals 35,5%; transport 10,3%;

meststoffen 9,4%; machines 4,6%; dairy 4,3% BY-B : 240 million import, 124 million export Now negotiations WTO. Result increased competition Now difficulties to Russia in dairy, food, agro

machinery

Belarus Transport and logistics2 transeuropean transport corridors 2&4

Warehouses & logistic centres in Belarus 2.600.000 sqm warehouses 362.000 sqm class A&B in 22 locations 4 major private logistic centres (35.000sqm) Important share of Beltamozhservice

Plan government : 15 new warehouses till 2015

www.prilesie.com 150.000 sqm

Belarus & transport Total cargo 462 million Tons/y 36% automobile 4500 companies +44% 33% Train 154 million T of which 45,6

transit 30% pipeline oil& gas

Belarus & transitConfusing signals Not forgotten : confiscation policy in 2000-2004 Still problems with transit (often mistake

documents and no presence=quick reaction not easy) Still big concurn : stable economy, predictable

legislation, trustworthdy gouverment Difference between Minsk and regions Logistic infrastructure (warehousing) not yet Facts : low foreign investments, little business

presence, small country, bureaucracy,… Still work on better legislation or procedure

Custom Unionconfusion signals from presentations

Simplifying procedures for individuals

Electronic declaration More members CU WTO & competition tariffs from 10% to

7,8%

VAT Custom clearance at

borders Principe of residence Promising but not

realised infrastructure

Difficult political relations

positive negative

But: Long term : Euroasian Union more and more economical player in

world wide trade, particular between EU and Asia. 2011-2020 : carrying over of custom control on external borders

(internal order of 8 nov 2010: 42 custom offices in Moscow dissolved, 19 newly found custom offices)

Moscow saturation traffic jams, lack of available place, high costs. Just in time more and more important for all companies Belarus offers unique geostrategic location, excellent roads,

competent workforce at relatively good price (excellent specialists, hard work, russian speakers who think european), still possibilites in locations and opportunities

Extra market of 10 million, next to Europe Safe & clean, low corruption

Do and Don’ts Respect documents and administration Never be tempted to brown envelops Keep low profile and know your strategy Ask information first or help to

professionals Consider local presence (rep office, local

partner, activity) Study if interesting without prejudgments Be social

THANK YOU FOR YOUR ATTENTION

Filip VandenbroeleHonorary Consul of Belgium to Belarushttp://consulbel.at.tut.byconsulbel@tut.by