ArmInfo. Armenia is attempting to legislatively equalize the rights of foreign and local investors. At its April 8 meeting, the National Assembly's Committee on Economic Affairs issued a positive opinion on the draft law "On Investments" submitted by the RA government.
Presenting the document, RA Deputy Minister of Economy Lilia Sirakanyan noted that the purpose of the bill is to consolidate the legal framework for investment relations in accordance with modern requirements for both local and foreign investors. According to her, the current law "On Foreign Investments," adopted in 1994, no longer fully regulates the investment process in accordance with modern requirements and applies exclusively to legal relations related to foreign investments and investors. Sirakanyan emphasized that one of the key features of the document is its extension of its regulations to both foreign and local investors and investments.
"The draft establishes a non-discrimination guarantee with two important components: national treatment, according to which foreign investors will have equal rights, freedoms, and obligations with local investors, and most-favored-nation treatment, according to which investors from foreign countries in similar situations will enjoy similar favorable treatment," she said.
The deputy minister explained that this means the right of a foreign investor to expect the same favorable treatment afforded to other foreign investors in the Republic of Armenia. "Exceptions are provided only for cases related to the Customs Union, free economic zones, and the Eurasian Economic Union, established on the basis of international treaties, as well as in other cases regulated by international treaties."
According to her, the draft also establishes guarantees of legal and physical security, transparency and sustainability of the investment legal framework, guarantees of free movement and conversion of capital and property, property rights to land, guarantees of employment, dispute resolution mechanisms, and access to justice, among other things. Sirakanyan added that the document also provides for measures to support investors from the state, which could take the form of financial assistance, infrastructure construction, and other measures established by the country's legislation.
"The adoption of the law will create a clear and predictable legal environment in line with modern international standards, enhance Armenia's competitiveness and investment attractiveness, and stimulate inclusive and sustainable economic growth," the deputy minister stated.
