Foreign investments are regulated by the Federal Law No. 160-FZ issued in 1999, which guarantees foreign investors the right to invest and to receive revenues and profits from such investments and sets forth the general terms for foreign investors’ business activities in Russia.

The law treats foreign investors no less favorable than domestic investors, with some exceptions intended to protect the Russian constitution or for the purposes of protecting state security or health or protecting the rights of persons and public morals in society.
The law gives guarantees that foreign investments will not be nationalized except in exceptional cases, with a guarantee of compensation.

The law allows foreign investors to invest in most economic sectors including investing in government securities, bonds and stocks, investing and establishing new businesses, acquiring existing Russian companies, entering into joint ventures and other businesses. 

According to the investment law, the foreign investor has the right to obtain compensation in the case of  loss resulting from legal violations or inaction by government agencies.

The Investment law guarantees that the tax burden on investments will not increase until the value of the investment is recovered and has a maximum period of 7 years unless this period is extended by the Russian government. Excluded are excise tax, VAT on domestic goods and payments to the pension fund.

This law does not apply to foreign investment in the following areas:

•  Insurance companies and other credit institutions;
• The media in all its forms;
• Air carriers;
• The Non-profit organizations;

Where foreign investment in these entities is subject to criteria established by Russian legislation.

As for foreign investments in Russian companies of strategic importance for national defense and security, investment in these entities is regulated by Federal Law No. 57-FZ of 2008 (Strategic Companies Law).