Russia And Moldavia Ratify Agreement On Protection Of Capital Investments

The Russian State Duma (parliament's lower house) Wednesday ratified an agreement between the governments of Russia and Moldavia on encouragement and mutual protection of capital investments. In this agreement, both sides make commitments "to ensure, on a mutual basis, free access to its territory of capital investments by each of the parties to the contract and to provide for them a favourable legal regime." Each of the parties reserves for itself the right to set aside industries and spheres in which investment activity shall be banned or limited. The agreement guarantees protection of capital investments against forced expropriation or nationalisation, excluding cases when such measures are taken in public interests. Investors are guaranteed adequate compensation should damage be inflicted on them, including damage in the event of war and civil disturbances; they are also guaranteed free transfer of incomes and other funds having to do with capital investments. Apart from that, the agreement provides for legal protection of investor rights and for court proceedings to settle investment disputes, including international arbitration.

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