Latin America Legal Alert

    View Author October 2009
    The Russian-Venezuelan intergovernmental agreement on the encouragement and mutual protection of capital investments, signed in Caracas on November 7, 2008, has been ratified by Russia pursuant to Federal Law No. 221-FZ, "On Ratification of the Agreement by and Between the Government of the Russian Federation and the Government of the Bolivarian Republic of Venezuela on the Encouragement and Mutual Protection of Capital Investments," dated September 27, 2009.

    The agreement allows for the admission of capital investments by investors from Venezuela or Russia into the jurisdiction of the other party. In this respect, investors shall be given fair and equitable treatment with respect to the possession, use and disposal of such investments.

    The agreement provides that investment disputes may be settled through UNCITRAL ad-hoc arbitration or before the Arbitration Institute of the Stockholm Chamber of Commerce.

    The next step will be the reciprocal notices, after which the BIT will come into force.

    For more information on the agreement, please contact  Hernando Diaz-Candia, +58.212.953.4006 from Squire, Sanders & Dempsey S.C. in Caracas or Ivan A. Trifonov, +7.495.258.5250 from our Moscow office.