Foreign investors interested in the business environment available in Russia
should be familiar with the legislation available for foreign investments
, which is designed to attract foreign direct investment (FDI) projects
into the country. The legislation in this sense provides a stable framework for businessmen as it refers to the protection of ownership
and investment agreements
. Entrepreneurs who want to know more about the legislation applicable in this field can receive assistance from our team of Russian company formation agents
Legal framework for foreign investments in Russia
Entrepreneurs who want to open a company in Russia
should know that the investment legislation
offers a set of provisions favorable to foreign businessmen
The main rule of law for investment projects in Russia
is the Federal Law No. 160-FZ
, referred to the Law on Foreign Investments
. One of the main provisions of the legislation refers to the fact that foreign investors
have approximately the same legal regime and advantages as prescribed for the local investors.
Foreign investors are guaranteed to several rights through this law, as follows:
• guarantee of legal protection of the business activities carried out in Russia;
• foreign investors can access a multitude of business sectors, except for several industries which are prohibited by law;
• the rights and obligations of a foreign investor can be transferred to a third party;
• under the Stability Law, foreign investors and their companies are protected from unfavorable changes which make happen in the business sector/local economy;
• investors can also own properties and other types of real estate items.
Business sectors unavailable to foreign investors in Russia
Although foreign investments are allowed in a wide area of business fields, several industries can’t be accessed by foreign investors or, if they do, there are special limitations imposed, as the sectors are considered to have a strategic importance for the Russian state.
Foreign investors are forbidden to own voting rights that will give them the right to control Russian companies
involved in strategic fields, such as:
• mining activities related to the extraction of mineral resources;
• aerospace industry;
• military activities.