On September 15, the Edict of the President No. 285 dated September 13, 2023 “On Special Accounts” has been published.
What does the Edict regulate?
The Edict regulates the operation of special bank accounts into which profits/dividends of Belarusian legal entities are credited and distributed in favor of foreign shareholders from “unfriendly countries” and persons under their control (regardless of their place of registration/place of primary business activity).
Account operation mode
The Edict establishes that special accounts are opened in Belarusian banks and only in Belarusian rubles.
The use of funds credited to such bank accounts for shareholders receiving dividends will be exclusively for the following purposes: (i) financing the implementation of investment projects in Belarus; (ii) repayment of debts to banks; (iii) acquisition of specially issued government securities, without the right to circulate them; (iv) placement in irrevocable deposits for a period of at least 1 year; (v) other purposes agreed with the Council of Ministers/President.
Grounds for the Edict application
It shall be noted that the specified procedure for paying dividends by crediting to special bank accounts with a special regime does not apply automatically, but in the event if Belarus introduces a special restrictive measure in the form of limiting financial transactions for foreign shareholders to receive profits/dividends by adopting a separate Resolution of the Council of Ministers.
Currently, this special restrictive measure has not been adopted.
The Edict comes into force on September 16, 2023.
If you have any additional questions on profits distribution and dividends payment, please do not hesitate to contact us.
