Iran and Russia Sign Agreement on Mutual Promotion and Protection of Investments
Nourlaw.com- Tehran- 16 January 2017- The Law of Agreement on Mutual Promotion and Protection of Investment between the Government of the Islamic Republic of Iran and the Government of the Russian Federation was passed on 24 Aban 1395 (14 November 2016) by the Iranian parliament. The Official Gazette published the text of the legislation today.
In the preface of the 12-article accord it is stated that: “The Government of the Islamic Republic of Iran and the Government of the Russian Federation, called hereinafter the “Contracting Parties”, desiring to consolidate their economic cooperation for securing the interests of the nationals of the Contracting Parties; utilizing economic resources and potential possibilities in the area of investment and creating and safeguarding appropriate conditions for investments of the investors of the Contracting Parties in their territories” have concluded the Agreement.
Article 2 of the Agreement has set the areas of mutual investments as follows: Movable and immovable assets and related rights; Shares or any type of partnership in the capital of companies; Intellectual property rights especially with respect to copyright, patent, industrial designs, trademarks, and know-how; Rights granted by law or contracts in line with the laws and regulations of the Parties such as the rights relating to exploitation, development, extraction and use of natural resources.
Various sections of the Agreement are: Definitions; Promotion and Admission of Investment; Treatment of Investment; Confiscation and Compensation of Damages; Compensation of Losses; Payment Transfers; Substitution; Scope of Applicability of the Agreement; Settlement of Disputes; Consultation; Enforcement and Duration.
The Agreement shall be valid for 10 years and automatic extension of 5-year periods, unless terminated by the written request of each party.