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The Russian legal system as a factor in attracting investment
1 June 2017

Russia’s legal system has seen a major overhaul in recent years, including a sweeping reform of the Civil Code, changes to the system for resolving economic disputes and the ongoing revision of the monitoring and oversight framework. Modern legal concepts have been introduced that allow for complex investment projects to be carried out, such as representations and warranties, escrow accounts and shareholder agreements. Reorganization of state courts and the introduction of procedures for forming arbitral tribunals and expansion of their powers have enabled parties to resolve economic disputes much faster than before. The legal community is well aware of these changes, but business owners and executives of Russian companies are slow to come on board, as they are used to thinking of English law as the only possible option. What new opportunities does the Russian jurisdiction offer businesses? How effective is the legal protection afforded to foreign investments in Russia? How successful are the measures being implemented to reduce administrative burdens on business? What steps need to be taken and what international best practices could be used to further improve the Russian legal system?

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