Russia and Cambodia agreed about mutual protection of capital investments
The Chairman of the Government of the Russian Federation Dmitry Medvedev signed the Federal Law draft "About ratification of the Agreement between the Government of the Russian Federation and the Government of the Kingdom of Cambodia about stimulation and mutual protection of capital investments", prepared by the Ministry of Foreign Affairs and by the Ministry of Economic Development of the Russian Federation.
The Agreement provides the admission of capital investments of investors of the State of the one Party to the territory of the State of the other Party in accordance with the laws of the accepting State; providing by the each Party to capital investments of investors of the State of another Party the regime not less favorable than that which is provided to capital investments of its own investors or to capital investments of investors of any third State. In addition, the document contains a paragraph about preservation by each party of the right to use and to enter in accordance with the laws of their State exceptions from the national treatment concerning foreign investors and their capital investments.
At the same time in accordance with the Agreement, neither Party is obliged to distribute to the capital investments of investors of the State of other Party the advantages which it provides to capital investments of investors of any third State in connection with participation in free trade zone, customs or monetary union, common market and any similar economic integration entities or any international agreement leading to the creation of such unions or entities, as well as on the basis of agreements about avoiding of double taxation or other agreements about taxation.
The agreement establishes the right of the investor to get an adequate compensation in case of damage to his investment. Also it is guaranteed a free transfer of payments related to the capital investments abroad, after execution by investors of all their tax obligations.
Ratification and entry of the Agreement into force will provide to Russian and Cambodian investors long-term stability and predictability of the legal environment, will promote activation of investment, trade and economic cooperation of the two countries.
In accordance with the Federal law "About international treaties of the Russian Federation" the Agreement is subject to ratification, because it contains rules different from those stipulated by Russian laws.
The Bill reviewed and approved at the meeting of the Government of the Russian Federation on October 1, 2015.