Russian law: the legal framework for foreign investment in the Russian petroleum industry - problems and progress

Recent developments in Russian law relating to foreign investment in the petroleum industry are reviewed. The central piece of legislation regulating foreign investment is the Law on Foreign Investments of 1991. Its significance is that it is opened up to foreign investment that had been a closed society but it did not set out how and or what conditions investors' rights were to be acquired and exercised. The main problems that have had to be dealt with include: determining which government authorities (federal, republic, regional etc.) have the power to grant petroleum exploration and production rights; determining the methods by which these rights may be obtained and on what terms; determining export rights; establishing the basis for taxation; establishing the general framework for foreign investment in Russia. The extent to which these issues have been resolved is discussed and remaining areas of concern considered. (UK)