Guarantee by Putin: Foreign investments in Russian economy to be restored for interested parties
Russia's President Vladimir Putin has signed Decree No. 436, titled "On Additional Guarantees for the Rights of Foreign Investors," on July 1, 2025. The decree aims to re-invigorate foreign investment inflows, particularly from the US and European countries, by lifting counter-sanction restrictions and introducing mechanisms that facilitate and safeguard non-resident investments [1].
Key implications of the decree include:
1. Lifting of Counter-Sanction Restrictions: The decree eases some of the counter-sanctions previously imposed, which had restricted foreign investors, particularly those from Western countries. This move creates a more favorable investment climate by reducing bureaucratic and regulatory barriers for these investors [1].
2. Introduction of 'In' Accounts: The decree introduces special "In" accounts for foreign investors. These accounts will track foreign investors' funds in foreign currency and rubles, stocks, bonds, federal loans (OFZ), and shares of Russian investment funds (PIF). The accounts are designed to facilitate more straightforward and secure financial operations and transactions for non-resident investors [1].
3. Enhanced Legal Guarantees and Protection: The decree aims to assure foreign investors that their rights will be protected under the new framework, which could include protection against expropriation or arbitrary restrictions stemming from geopolitical tensions and sanctions regimes [1].
4. Implications for US and European Investors: Given the strained Russia–US relations and the extensive sanctions regime since 2014, this decree represents a strategic move by Russia to attract foreign capital by offering stronger legal protections and easing previous hurdles for investors from these regions [1][4].
The decree comes into force on July 1, 2025, and it lifts counter-sanction restrictions imposed by Decrees No. 81 and No. 95 from 2022-2023. However, there are no signs of foreigners wanting to return to Russia, with the interdepartmental commission reviewing dozens of "exit" applications from foreigners every month.
Economic analysts, such as Mikhail Khazin and Evgeny Kogan, have discussed the potential consequences of the global dollar system's collapse and the focus areas for investors in the era of global world redistribution. As Russia seeks to attract foreign investment, these discussions could play a significant role in shaping investment strategies in the Russian market under the new, legally guaranteed conditions.
- The decree signed by President Putin on July 1, 2025, introduces 'In' accounts for foreign investors, which are designed to facilitate more straightforward and secure financial operations and transactions in foreign currency, rubles, stocks, bonds, federal loans (OFZ), and shares of Russian investment funds (PIF).
- The legal implications of the decree reassure foreign investors that their rights will be protected under the new framework, providing protection against expropriation and arbitrary restrictions stemming from geopolitical tensions and sanctions regimes.
- Given the strained Russia–US relations and the extensive sanctions regime since 2014, this decree could potentially serve as a strategic move by Russia to attract foreign capital from the US and European countries by offering stronger legal protections and easing previous hurdles for investors from these regions.
