Guarantees For Foreign Investors In Russia

Federal Law № 160-FZ "On Foreign Investment in the Russian Federation", dated 09 July 1999 gives main guarantees of foreign investors’ rights with regard to investment and profit and other income received from such investment. 

The provisions of this Law are mainly as follows: 

- Legal treatment of foreign investors’ business operations and the use of profit gained from investment must not be less favourable than those of Russian investors.

-  At the same time legislation set forth some restrictions and exceptions with regard to foreign investment (Federal Law "On Procedures for Foreign Investments in the Business Entities of Strategic Importance for the  Russian National Defence and State Security" dated 29 April 2008 № 57-FZ, Law of the RF dated № 2124-1 "On Mass Media" 27 December 1991, and other regulations). 

- Foreign investors operating in Russia are given full and unconditional protection of their rights and interests guaranteed by Federal Laws and other legal acts,  international treaties to which Russia is a party.

- Foreign investors have rights to recover damages suffered as a result of illegal actions (or inaction) of state authorities, local administrations, or officials of these authorities. 

- Property of a foreign investor or a business entity receiving foreign investment cannot be seized or be subject to nationalization, or requisition. 

- Foreign investors’ disputes arising from investment and business operations in Russia shall be resolved in accordance with the international treaties of the RF and the Federal Laws in court, or arbitration tribunal, or in an international court of arbitration (court of mediation).

- Constitution of the RF claims that  generally recognised principles and provisions of the international law,  international treaties of the RF form an integral part of its legal system. The latter shall prevail in case of any contradictions.