Azernews.Az

By Amina Nazarli

Russia has approved the introduction of a draft law in the State Duma on ratification of the agreement between Russia and Azerbaijan on Promotion and Reciprocal Protection of Investments, the Cabinet of Ministers said on July 22.

The agreement was signed between the two countries in Astrakhan, Russia on September 29, 2014.

The ratification of the agreement will aid in the protection of mutual investments and the settlement of investment disputes.

The document specifies the mechanisms for the protection of investments against forced withdrawal and compensation. It also provides the judicial protection of investors' rights and procedures for resolving investment disputes, including international arbitration.

It also guarantees protection against the forced withdrawal of investments, including nationalization and expropriation.

The entry of the agreement into force will provide investors from the two countries with the long-term stability in a predictable legal environment, along with boosting investment, trade, and economic cooperation between the two sides.

So far, Russia has invested more than $1.8 billion in the economy of Azerbaijan, while Azerbaijan has invested more than $1 billion in the Russian economy.

More than 600 companies including Gazprom, Lukoil, KAMAZ, and Bank VTB with Russian capital are operating in Azerbaijan. About 200 of these companies are fully funded by Russian capital, while 300 are operating together in the form of a joint venture.

The trade turnover between Azerbaijan and Russia amounted to $799.4 million in January-May of 2015, an increase of 5.8 percent than in the same period of 2014, the State Customs Committee of Azerbaijan said. Azerbaijan exported roughly $138.6 million worth of products to Russia in January-May 2015.

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Amina Nazarli is AzerNews’ staff journalist, follow her on Twitter: @amina_nazarli

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