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Capital Investment Agreement between Russia and Nicaragua Ratified


Russian President signed Federal Law #139 from July 2, 2013 “Ratification of the Agreement between Russian Federation and Republic of Nicaragua for incentives and mutual protection of capital investments.” The Agreement was signed in Moscow on January 26, 2012.

According to the agreement, capital investments by investors of each country are allowed on the territory of the other.

Each country will provide capital investors of the other with a fiscal regime not less favorable than what exists for its own or those of any other country. At the same time, each country retains the right to enact and implement exceptions to its national regime in regards to investors and their investments in accordance to the country’s legislation.

The agreement includes several provisions and guarantees, including guaranteed protection of invested capital from appropriation by the State – nationalization, expropriation and other measures with similar consequences (with some exceptions). Investors are also guaranteed unhindered international transfer of funds related to the investments after fulfilling all necessary tax obligations.

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