Belarus' Most Valuable Asset: Its People And Natural Resources

Belarus is a landlocked country in Eastern Europe with a largely flat terrain and expansive areas of marshland. It is bordered by five European countries: Poland, Latvia, Ukraine, Lithuania, and Russia. Belarus has a variety of natural resources, including peat deposits, forests, oil, natural gas, brown coal, fertile land, limestone, iron, clay, chalk, and sand. However, it is generally poorly endowed with mineral resources and remains dependent on Russia for most of its energy and fossil fuel requirements. The country has one of the world's largest reserves of potash (potassium salts), which is a significant contributor to its economy.

Belarus' natural resources

Belarus is a landlocked country in Eastern Europe, occupying an area of 80,153 square miles. It has a flat terrain with expansive areas of marshland and forests, which occupy around 40% of the land. Belarus has a range of natural resources, including:

• Peat deposits, which are found in the marshlands and used for fuel and power generation.
• Forests, which provide timber for local and international markets and support a huge forestry industry.
• Shale oil reserves, estimated at between 5 and 11 billion tons, although most remain unexploited due to high extraction costs and the availability of cheaper substitutes.
• Small quantities of natural gas, with commercial extraction beginning in 1965.
• Brown coal, which is used as a fuel source but remains under-exploited due to environmental concerns.
• Fertile land, especially close to river basins, which is used for growing crops such as barley, wheat, potatoes, and sugar beets, as well as for livestock farming.
• Limestone deposits, which are used in cement and fertiliser production, as well as in the manufacture of lime, paint, plastics, and medicine.
• Iron ores, with two major deposits located at Akolaŭskaje and Navasiolkaŭskaje.
• Sand, mainly found in the eastern region, which is used in construction and glass-making.
• Small deposits of oil, discovered in the 1960s and providing around 17-18% of the country's needs.
• Potash (potassium salts), with the world's third-largest reserves, discovered in 1949 and exploited from the 1960s onwards.
• Halite (salt), with large deposits formed during the Late Devonian epoch.
• Phosphorite ore deposits, containing over 400 million tonnes of phosphorites.
• Small deposits of gold and diamonds.
• Various building materials, including granite, dolomitic limestone, marl, chalk, clay, and gravel.

Belarus' economy

Belarus is an upper-middle-income economy with a strong emphasis on the public sector. It has a highly centralised control system with the state retaining control over key industries.

The country has a diverse range of natural resources, including peat deposits, forests, shale oil, natural gas, coal, fertile land, limestone, iron, clay, chalk, and sand. Belarus is self-sufficient in potash and table salt, ceramic clay, building sand, and building stone. The country also has small reserves of petroleum and natural gas, but it is heavily dependent on Russia for most of its energy and fossil fuel requirements.

Forestry is a key industry in Belarus, with over 5,000 enterprises and more than 146,000 people employed in the sector. The country's timber production has been steadily rising since 2013 due to high demand from the construction and furniture manufacturing industries.

Agriculture is another important sector, with potatoes, flax, hemp, sugar beets, rye, oats, and wheat being the chief agricultural products. Belarus also has a significant food processing industry, contributing to national income and providing employment.

The manufacturing sector in Belarus includes the production of tractors, heavy trucks, oil processing, metal-cutting, synthetic fibres, TV sets, semi-conductors, and microchips. The country has a well-developed heavy industry, producing heavy-duty vehicles, machine tools, precision manufacturing goods such as radios, watches, bicycles, and computers.

Belarus has a growing information technology sector, with the Hi-Tech Park in Minsk hosting more than 750 start-ups and outsourcing companies that employed 58,000 workers as of 2020.

The service sector accounts for about two-fifths of Belarus's GDP, with banking, communications, and real estate experiencing high growth rates. Tourism is also a growing industry, with popular destinations including the Belovezhskaya Forest and the 19th-century fortress in Brest.

The country has a good transportation network, including railways, highways, and an extensive mass transit system in the capital city of Minsk.

Overall, Belarus's economy is diverse and relies on a mix of natural resources, manufacturing, agriculture, and services. However, it faces challenges due to its dependence on Russia for energy and the impact of international sanctions.

Belarus' energy sector

Belarus is a net energy importer, relying on Russia to meet most of its energy needs. In 2018, only 15% of the country's energy demand was met by domestic production, making Belarus one of the least energy self-sufficient countries in the world. The country's energy sector is dominated by state-owned companies, with the president holding the exclusive right to make all strategic decisions.

The electricity sector is operated by a single vertically integrated national energy company, BelEnergo, while gas distribution is handled by BelTopGaz. Belarus is also an important part of Russia's gas transit corridor to Western Europe, with matters related to natural gas transit established in a bilateral agreement with Russia's Gazprom.

The main priorities of Belarusian energy policy are to provide reliable and sustainable energy for the national economy while reducing energy import dependence and improving the sector's financial stability. The government is considering power generation fuel diversification, including more coal and renewables, and has introduced a green feed-in tariff to attract investment in renewables. Belarus is also improving energy efficiency in electricity and heat production and phasing out subsidies, which is expected to make the energy sector more market-focused and attractive for private investment.

The country has two refineries and oil pipelines built during the Soviet era, including the Mozyr Oil Refinery. Belarus is a large oil refiner, ranked 36th in the world by the IEA in 2018. Oil consumption in 2021 amounted to 49.13 million barrels, with 12.52 million barrels produced and the rest imported.

Belarus is one of the world's largest importers of natural gas. In 2018, it imported an estimated 17 Mtoe (20 billion cubic metres) of natural gas, making it the leading importer among the EU4Energy countries. Nearly all electricity generation in 2018 came from natural gas (97%, or 39 terawatt hours), but this is projected to change with the commissioning of two nuclear generators (to be operational in 2020 and 2021). Renewable energy generation accounted for 6% of Belarus's energy in 2018, rising to 8% in 2020, mainly from biofuels and waste.

Belarus' exports

Belarus's exports are varied, and the country has a mixed, upper-middle-income economy. It has been described as a welfare state or market socialist.

The country's exports include machinery and equipment, mineral products, chemicals, metals, textiles, and foodstuffs. Belarus is a major producer of potash, and in 2024 it was the third-largest producer of potassic fertilizers in the world. In 2022, the country exported $1.89 billion worth of potassic fertilisers.

The country also exports refined petroleum, rapeseed oil, sawn wood, tractors, cheese, coniferous wood, bars and rods, particle board, and crude rape oil.

Belarus's chief agricultural products include potatoes, flax, hemp, sugar beets, rye, oats, and wheat. Dairy and beef cattle, pigs, and chickens are also raised.

The country's main export partners are China, Ukraine, Poland, Kazakhstan, and Lithuania.

Belarus' industries

Belarus has a mixed economy that is highly centralised, with the state retaining control over key industries. The country's economy is centred around heavy industry, manufacturing, and agriculture. In 2019, industry accounted for 25.5% of Belarus's GDP, with the food industry being the most important sector, making up 29.9% of total manufacturing output.

The country's other well-developed industries include the automotive industry, the chemical industry (including oil refining, petrochemistry, and the manufacturing of fertilisers and other chemical goods), and the production of machinery and equipment.

Belarus also has a significant forestry industry, with over 5,000 enterprises and more than 146,000 workers. The country's forests provide timber for local and international markets, and the government protects and manages the forests due to their importance to the country.

Belarus also has a large military industry, which was inherited from the Soviet era. The country was the 20th largest exporter of major arms between 2014 and 2018, according to the Stockholm International Peace Research Institute.

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