Foreign investments in the Russian Federation during the period of sanctions: restrictions imposed and their correlation with the rights of foreign investors

Abstract

The article analyzes the problem of the correlation between the restrictive measures introduced by Russia against foreign investors, as a response to sanctions from unfriendly foreign states, and the guarantees for foreign investors, provided for by treaties for the promotion and reciprocal protection of investments. After that many foreign investors stopped or suspended their activities in Russia. To protect the national interests of Russia and ensure the stability of its economy, restrictive measures have been introduced against foreign investors: a ban to transfer assets from Russia abroad, a special procedure to carry out transactions with foreign persons from unfriendly states. A bill on external administration has been passed. According to foreign experts, such measures can be understood as violation of international investment treaties, and may affect companies, whose investments in Russia can be expropriated without compensation, the investors may get protection under these treaties. Russia introduced the above restrictions in response to the sanctions of unfriendly countries against our country and the departure of foreign investors, in order to maintain stability in the economic sphere, in order to ensure the security of the state. The author concludes that such restrictions based on the doctrine of reasonable state regulation are legitimate, since the state is forced to protect the national economy.