The Federal Law ratifies the Agreement between the Government of the Russian Federation and the Government of the Republic of Armenia on Encouraging and Providing Mutual Protection for Investment (hereafter referred to as the Agreement), signed in Yerevan on September 15, 2001.
The Agreement’s ratification will create a favourable climate for the two parties to the Agreement to carry out investment activity on each other’s territory.
The Agreement contains provisions for protecting investment from forcible confiscation measures akin to expropriation or nationalisation in their consequences, and also sets out the conditions for compensating the value of expropriated investment.
The Agreement also guarantees investors the right to make unhindered transfers of payments abroad that are connected with the investment. This includes income, compensation, funds received through the liquidation or sale of the investment, funds paid as settlement of loans and borrowings, and also wages and other forms of remuneration. The Agreement sets out the procedures for investment dispute resolution.
The Federal Law was passed by the State Duma on November 23, 2005, and approved by the Federation Council on December 7, 2005.