In this term paper, answers to setting up a legal entity in the Republic of Belarus in the context of positive factors and impediments are to be explored and found. Therefore, the underlying formulation of the question is set as following: Which factors help an energy related Swiss corporation setting up a legal entity in the Republic of Belarus and which impediments are to be expected?
The underlying term paper is a literature-based work, which tries to take the newest literature found about economical facts and figures, energy in Belarus and the relation between Belarus and Switzerland into account. In the theory part of this paper, facts and figures of Belarus are being described, followed by the relationship between Belarus and Switzerland, to conclude how the two countries doing business with each other in the current state. Common casualties as well as differences are shown with underlying material. The theory part ends with an overview of the current state of political issues in the Republic of Belarus. The evaluation part points out the different positive and negative aspects of setting up a legal entity in Belarus. The term paper is rounded up with a conclusion section, in which recommended actions are being presented as well as closing remarks and an outlook is given.
Table of Contents
1 Introductory section
1.1 Initial situation
1.2 Phenomenon
1.3 Relevancy
1.4 Formulation of the question - scientific issue
1.5 Objective target and expected results
1.6 Demarcations
1.7 Structure of the term paper
2 Theory section
2.1 Facts and figures of Belarus
2.1.1 Starting a business in Belarus
2.1.2 Free economic zones in Belarus
2.1.3 Belarus in economic numbers
2.2 Relationship Belarus – Switzerland
2.2.1 Hofstede’s 6 Dimension Model
2.2.2 Bilateral relations Switzerland – Belarus
2.2.3 Swiss flagship in investing into Belarus: StadlerRail
2.3 Energy business in Belarus
2.3.1 Current state of the energy system
2.3.2 Growth potential
2.4 Political and other issues in Belarus
2.4.1 Political crisis in the aftermath of the presidential election
2.4.2 Concerns on economic growth
2.5 Conclusion of the theory section
3 Evaluation section
3.1 Evaluation of economic and political state of Belarus
3.1.1 Economy of Belarus
3.1.2 Belarusian – Swiss relationship
3.1.3 Energy business growth potential
3.1.4 Entering Belarusian energy market
3.2 Discussion
3.2.1 Economic Belarus
3.2.2 Belarusian – Swiss future
3.2.3 Belarusian Energy
3.2.4 Setting up a legal entity in Belarus
3.3 Results of the evaluation section
4 Conclusion
4.1 Closing remarks
4.2 Recommended actions
4.3 Outlook
Research Objectives and Topics
This paper aims to identify and analyze the positive factors and impediments for Swiss energy companies looking to establish a legal entity in the Republic of Belarus. It explores the current economic and political climate, focusing on the specific challenges and opportunities within the energy sector, including renewable energy development and the regulatory environment for foreign investors.
- Analysis of the current economic and political state of Belarus.
- Evaluation of bilateral business relations between Switzerland and Belarus.
- Assessment of growth potential within the Belarusian renewable energy sector.
- Identification of legal and operational factors influencing foreign business entry.
- Overview of the impact of the 2020 political crisis on foreign investment.
Auszug aus dem Buch
2.3.1 Current state of the energy system
Belarus had a demand of 27 Million tonnes of oil equivalent (Mtoe) in the year 2018, where only 15% of the demand side could be delivered by own energy production in the country. This makes Belarus one of the least energy self-sufficient countries in the world. Therefore, most of the remaining part needs to be imported. In 2018 close to 97% or 39 terrawatt hours (TWH) of all electricity generation came from natural gas. That again makes Belarus one of the biggest importers of natural gas worldwide. Additionally, Belarus imports 17 Mtoe of crude oil, which mainly is imported from Russia. Though as Belarus is a big oil refiner, this is mostly be re-exported to countries like Ukraine (IEA, 2020). The price of Natural Gas coming from Russia has increased again from USD 127 in 2020 to USD 128.5 in 2021 per thousand cubic meters. This is to be put into relations with the price the European countries pay: USD 258 per thousand cubic meters (Tut, 2021b).
36% of total consumption of energy is taken by the industry sector (7.3 Mtoe). The industry sector also is the biggest consumer of electricity and heat. With 27% (5.2 Mtoe) the residential sector is followed second biggest energy consumer. The largest increase of energy consumption from the year 2000 to the year 2018 comes from the transport sector with an increase of 80%. The transport sector is also the largest consumer of oil products in the country (IEA, 2020).
Summary of Chapters
1 Introductory section: Defines the research scope, the scientific issue regarding market entry, and the overall structure of the paper.
2 Theory section: Provides a comprehensive overview of the Belarusian business landscape, bilateral Swiss-Belarusian relations, and the status of the energy sector.
3 Evaluation section: Examines the gathered data to assess specific opportunities and obstacles for Swiss companies entering the market, including political and economic risks.
4 Conclusion: Synthesizes the findings, provides recommended actions for potential investors, and outlines future research prospects.
Keywords
Belarus, Switzerland, Energy Market, Renewable Energy, Foreign Investment, Business Entry, Economic Growth, Political Crisis, Regulatory Environment, Sustainable Energy, Market Analysis, Renewable Energy Sources, RES, Business Development, Energy Security
Frequently Asked Questions
What is the primary focus of this paper?
The paper explores the market entry possibilities for Swiss energy corporations in Belarus, identifying both positive factors and impediments in the current political and economic climate.
What are the central thematic fields covered?
The key themes include Belarusian economic history, bilateral relations with Switzerland, the current state of the energy system, and the challenges posed by political instability.
What is the main research question?
The research asks: Which factors help an energy-related Swiss corporation in setting up a legal entity in the Republic of Belarus and which impediments are to be expected?
Which scientific method is applied?
The paper utilizes a literature-based approach, analyzing current reports, economic data, and legal guidelines regarding market entry in Belarus.
What does the main body address?
The main body covers the business environment, economic figures, energy sector infrastructure, growth potential in renewable energy, and the impact of the 2020 presidential election.
Which keywords characterize the work?
The work is characterized by terms such as Belarusian energy market, Swiss investment, renewable energy, RES, and political/economic stability.
How has the 2020 political crisis affected the investment climate?
The crisis, following the presidential election, has introduced increased uncertainty, international sanctions, and potential delays for foreign investors.
What role does renewable energy play in Belarus's future?
The government sees high growth potential in renewables and is actively seeking foreign investment in this sector, supported by purchasing guarantees.
Is StadlerRail a significant case study?
Yes, StadlerRail is highlighted as a successful flagship project for Swiss investment, demonstrating that entry into Belarus can be lucrative despite challenges.
- Arbeit zitieren
- Fabian Boner (Autor:in), 2021, Entering the Belarusian Energy Market. Positive Factors and Impediments for Swiss Investors, München, GRIN Verlag, https://www.grin.com/document/1044740
