Belarus is generally poorly endowed with mineral resources. The government is attempting to accelerate the development of its raw-material base, but Belarus remains dependent on Russia for most of its energy and fossil-fuel requirements. In the 1960s, petroleum was discovered in the southeastern part of the republic, near Rechytsa. Production peaked in 1975 and fell to one-fourth of that total by the 1990s, when it stabilized.

Belarus does possess, however, one of the world’s largest reserves of potash (potassium salts), which was discovered south of Minsk in 1949 and exploited from the 1960s around the new mining town and fertilizer-manufacturing centre of Salihorsk. Potash exports remained high into the early 21st century. The country also is a world leader in the production of peat, which is especially abundant in the Pripet Marshes. In briquette form it is used as fuel. Among the other minerals recovered are salt, an important deposit of which, near Mazyr, was opened in the 1980s; building materials, chiefly limestone and, near Hrodna, quartz sands for glassmaking, both used locally; and small deposits of gold and diamonds.

Nearly all electricity is generated at thermal power stations using piped oil and natural gas; however, there is some local use of peat, and there are a number of low-capacity hydroelectric power plants. In the early 21st century Belarus began construction of its first nuclear power plant. The Lithuanian government strenuously objected to the plant, which was located less than 15 miles (24 km) from the Lithuanian border.

Manufacturing

Military production was of high industrial priority during the Soviet era, and the transition to primarily civilian production was difficult. Nevertheless, mining and manufacturing remain major components of the Belarusian economy and together account for more than one-fourth of GDP, with the processing of minerals and hydrocarbons playing an important role. A large facility for producing potash fertilizers is located at Salihorsk. There are oil refineries in the Polatsk area and at Mazyr in the south. Both are served by branches of a major pipeline originating in western Siberia, but the facilities at Mazyr also process local oil from Rechytsa. There also is a large petrochemical plant at Polatsk. Nitrogenous fertilizers are made at Hrodna, using natural gas piped from Dashava in Ukraine.

Heavy industry is well developed in Belarus. Heavy-duty vehicles, particularly trucks and tractors, are manufactured in Minsk, Zhodzina, and Mahilyow. Other engineering products include machine tools, such as metal-cutting equipment. Precision manufacturing was developed during the 1970s and ’80s, notably of such consumer goods as radios, television sets, watches, bicycles, and computers. Other industries are small-scale, and products are mostly for local consumption. These have included timber processing, furniture making, match and paper making, textile and clothing manufacture, and food processing.

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Finance

Independent Belarus restructured its Soviet-style banking system into a two-tier system consisting of the National Bank of Belarus and a growing number of commercial banks, most of which are either joint-stock or limited-liability companies. The republic introduced its own currency, the Belarusian rubel, in 1992. A securities market and stock exchange were also established that year.

Trade

During much of the Soviet period, the republic was a net exporter, with the bulk of its trade conducted with other Soviet republics, principally Russia and Ukraine. Independent Belarus became a net importer, however, when the price of previously inexpensive raw materials and energy from Soviet sources rose to meet world market levels. Nonetheless, in the early 21st century Russia and Ukraine remained the republic’s main trading partners, with trade increasing with China, Germany, Poland, and other countries of the European Union. Chief exports include refined petroleum, machinery, trucks, tractors, potassium chloride, metals, and foodstuffs. Major imports include crude petroleum, machinery, natural gas, rolled metal, chemical products, and foodstuffs.

Services

The service sector accounts for about two-fifths of GDP and employs the largest portion of the labour force. In the early 21st century the banking, communications, and real-estate industries experienced some of the highest rates of growth. Although the tourism industry is less developed in Belarus than in neighbouring countries, the revenue derived from tourist activities increased dramatically in the early 21st century. The Belovezhskaya Forest is one of the most visited destinations, and homestays on farmsteads have become popular. Another frequently visited site is the 19th-century fortress in Brest, known as the Hero Fortress for the courageous defense made there by Soviet soldiers against invading Nazis in 1941.

Labour and taxation

A large majority of the Belarusian labour force is employed in either services or mining and manufacturing. Belarus has one of the highest percentages of women in the workforce of any country, and women occupy key roles in the education, health care, communications, manufacturing, and agricultural sectors. Most employees in Belarus are members of a trade union. There are dozens of trade unions, and most are subordinated to the Federation of Trade Unions of Belarus, the body that oversees the unions.

In the early 21st century Belarus’s taxation system was simplified to bring it more in line with European standards. Taxes for individuals include an income tax, a social security tax, and property taxes. For businesses taxes include a corporate income tax, a social security tax, a value-added tax, ecological taxes (for the use of natural resources), and property taxes.

Transportation and telecommunications

Belarus has a good railway network that is headed by major interregional railways that crisscross the country: east-west between Berlin and Moscow, north-south between St. Petersburg and Kyiv, Ukraine, and northwest-southeast between the Baltic countries and Ukraine. The country’s main highway connects the city of Brest in the west to Minsk and the Russian border in the east. There are also good road connections between the capital and all regional centres. Buses operate throughout the country.

The city of Minsk is served by an extensive mass transit system that includes buses, streetcars, and an underground railway known as the Minsk Metro. Minsk has good air connections as well. Minsk National Airport, also called Minsk-2, is located about 25 miles (40 km) east of the city; it opened in 1982 and began international service in 1989. A domestic airport for smaller planes, located within the city, serves Belarusian regions and Moscow.

The state-owned telecommunications company of Belarus is the sole provider of fixed-line telephone service. Mobile phones are used much more extensively, however. Though privately owned, mobile phone companies in Belarus are subject to government oversight. In addition, opposition groups have reported that at times the government has monitored or interfered in individuals’ cell phone communications, and on occasion officials have confiscated mobile phones belonging to Belarusians suspected of criminal or antigovernment activities. The government also monitors and regulates Internet usage, which increased steadily during the opening years of the 21st century.