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Federation Council ratifies investment encouragement agreement with China

The document was signed in Moscow on May 8, 2025

MOSCOW, October 21. /TASS/. The Federation Council, the upper house of the Russian legislative assembly, ratified the intergovernmental agreement with China on encouragement and mutual protection of investments at its plenary session.

The document was signed in Moscow on May 8, 2025 for the purpose of making mutual cooperation more active on the basis of equality and mutual benefit.

The agreement contains updates in definitions of the terms of the investor and the investment and in provisions on the sphere of application of the agreement aimed at limiting the opportunity for foreign investors to file unjustified claims to international arbitration for compensation of damages.

The procedure for resolution of disputes between investors of the two countries was updated to make it more convenient for investors and for the countries. Certain limitations for lawsuits are introduced and requirements are set to the content of requests for consultations and transfer of disputes to arbitration. The opportunity is provided for the two countries to agree upon the interpretation of agreement provisions that will be binding for the arbitration tribunal in particular.

Norms were added that aim at simplifying procedures of making investments for the purpose of establishing stable, predictable and transparent conditions of the investment activity. The agreement also regulates issues of consideration of applications for permits to make investments by competent authorities.

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