Belarus, a former Soviet bloc country whose government still has a reputation of being  authoritarian, is gradually aiming to make itself more attractive to foreign investors.

If everything goes according to plan, foreign companies and individuals will invest up to $2.8 million in the Belorussian economy before the end of the year. A total of 78 foreign investment projects are deemed to be especially important and, not surprisingly, one of the most crucial ones is being initiated by Russia’s Vologda region, with an aim of increasing economic cooperation between the two countries.

Russia and Belarus already have a history of close cooperation, especially since the country’s president, Alexander Lukashenko, is isolated by most European leaders.

Belarus remains an emerging market and it is likely to become more attractive to foreign investors and even those looking to purchase real estate in the coming years.

Most observes agree that the country’s democratization and economic liberalization would speed this process up very significantly. 

Minsk, the Belorussian capital city, is best positioned to attract foreign investors, mainly due to the fact that the manufacturing industry remains strong here, despite the economic problems of the early 1990s.

According to the latest estimates, 40 percent of the city’s adults are employed within the manufacturing industry and Russia’s appetite for Belorussia’s products helps fuel the local economy.

Yet westerners contemplating purchasing property in Belarus must keep in mind that since this country is not a member of the European Union and still has a centrally planned economy.

Regulations also severely restrict foreign ownership of land or real estate.

Those who are able to purchase property in Belarus —normally through the cooperation of local companies--would be wise to buy real estate located along or near Minsk’s two metro lines.