On September 3, 2025, the Government of Belarus introduced new rules about loan and credit contracts. These rules say that if such contracts are ended early, a statutory penalty (a fixed fine set by law) can be applied. The measure will stay in force until December 31, 2026, though it may be extended later.

The rules apply only to contracts signed before September 6, 2025 that are still active after that date. They only concern contracts where one side is from what Belarusian law calls an “unfriendly” state. Contracts signed after September 6, 2025 are not mentioned, and it is not clear whether this was intentional or an oversight.

“Unfriendly” states include all EU countries, the USA, the UK, Canada, Australia, Switzerland, Norway, New Zealand, and several others. An organisation may count as “unfriendly” not only if it is registered in these countries but also if it is effectively controlled from there. For example, a Russian company owned or controlled by a French parent company could be treated as an “unfriendly” entity in this context. We suppose this rule may also affect loans within international corporate groups if the lender is linked to an “unfriendly” state.

How the statutory penalty works:

  • There must be a loan or credit contract.
  • Early termination is started by the “unfriendly” party (for example, they send notice to the Belarusian side).
  • The reason for termination is not listed in the contract itself and is not allowed under the law that governs the contract.

If those conditions are met, the “unfriendly” party must pay a penalty equal to 10% of the total loan or credit amount that is being repaid early. This penalty applies automatically, even if the contract itself does not mention it.

Example: If the contract clearly states that it can be ended early when the borrower’s financial results show negative net assets, and the lender ends the contract on that basis, then no penalty applies. But if the lender tries to end the contract without such a valid reason, the penalty can be claimed.

In light of these new rules, foreign businesses, particularly those based in Europe, the UK, or the USA, should take certain steps to reduce risks:

  • Review your loan and credit contracts to see what reasons for early termination are included. Add more detail if necessary.
  • Check which state’s law applies to the contract, since this affects whether termination is legally justified.
  • If possible, transfer claims or debts to companies in “friendly” states, but only if the contract doesn’t forbid this.
  • When signing new contracts, try to work with lenders from “friendly” jurisdictions, or at least include as many clear grounds for early termination as possible.

Belarusian law already provides some valid reasons for early termination, such as failure to make scheduled repayments, misuse of the loan, or loss of collateral. These rules still apply, but the new statutory penalty adds another layer of protection against unjustified early termination by “unfriendly” parties.

Authors:

Anton Mazol, junior associate

GRATA International, Belarus

Polina Sachava, senior associate

GRATA International, Belarus