Russia's State Duma ratifies agreement on promoting investment with Myanmar
MOSCOW. Feb 10 (Interfax) - The State Duma ratified a bilateral agreement at a meeting on Tuesday on promoting and protecting investments between Russia and Myanmar, establishing an investment protection regime including a mechanism for compensation in case of expropriation and a procedure for resolving investment disputes.
The document (no. 1120520-8) was submitted to parliament by the government in January.
Among other matters, the agreement protects movable and immovable property, shares and equity interests in legal entities, claims under monetary obligations and contracts, bonds, debt obligations, loans, and other forms of debt instruments, as well as intellectual property rights, including copyrights, patents, and trademarks. Ordinary commercial claims for the payment for goods and services, government loans and bonds, credits in trade transactions, or claims based on judicial, administrative, or arbitration decisions are not recognized as investments for the purposes of the agreement.
The document enshrines a procedure for protecting investments and most-favored-nation treatment.
The agreement envisages measures to promote investment, including supporting joint investment initiatives, organizing events to find business partners and exchange information on investment opportunities, and establishing contact points for investor consultations.
The agreement outlines a procedure for protecting investors in the event of expropriation and breach of obligations by the state. "The agreement stipulates that the Russian Federation will be required to pay compensation in the event of expropriation/nationalization of investments of Myanmar's investors or other damages to them. Paying compensation would also occur if a Russian court or international arbitration tribunal determines that the Russian Federation is failing to fulfill or improperly fulfilling its obligations to Myanmar's investors arising from the agreement. The Myanmar side assumes similar obligations," the explanatory materials said.
The agreement envisages the possibility of resolving investment disputes involving investors through international arbitration. Unless the parties agree otherwise and the dispute is resolved through consultations within one year, the investor may submit it to the national court of the country where the investment was made, or to international arbitration, namely an ad hoc arbitration tribunal under UNCITRAL rules, the Hong Kong International Arbitration Centre, or, by agreement of the parties, another arbitral institution.
The agreement is valid for 15 years, and the provisions remain applicable for an additional eight years for investments made prior to the agreement's termination.
