The federal law ratifies the Agreement between the Government of the Russian Federation and the Government of the Democratic People's Republic of Korea on Encouraging and Providing Mutual Protection for Investments signed on 28 November 1996 in Moscow.
The Agreement will create favourable conditions for the investment activity of one Party to the Agreement in the territory of the other Party.
The Agreement establishes mechanisms for protecting the parties' investments from measures of compulsory expropriation equivalent to nationalization and also defines conditions with respect to the value of the indemnification of expropriated investments.
Investors on both sides are guaranteed an uninterrupted transfer of foreign payments connected with capital investments such as revenues, compensations and financial means received in connection with the liquidation or the sale of investments, and also wages and other compensations.
The Agreement also establishes a regime which resolves investment disputes.