ArmInfo. The draft law "On Investments," presented by RA Deputy Minister of Economy Lilia Sirakanyan, was discussed in its second reading during a session of the NA Committee on Economic Affairs.
The Deputy Chairman of the Committee, Babken Tunyan, reported that after the first reading, representatives of the American Chamber of Commerce and Industry approached them and presented their proposals. These were discussed by the committee, followed by discussions with Deputy Prime Minister Mher Grigoryan.
After the first reading, no proposals were submitted by the parliamentarians. Fourteen proposals were submitted by the executive branch, as well as proposals from the Expert and Analytical Department of the National Assembly Staff. The main proposals were technical in nature. Lilia Sirakanyan outlined three substantive proposals. According to them, the right to compensation for damage caused to investors by illegal actions or inactions of local government bodies and officials is outlined. The draft excludes cases where the national operating procedure or most-favored-nation treatment is not applicable, as well as the circumstance leaving the procedure to the government's discretion, given that this may pose a challenge in terms of legal certainty. A provision has been added allowing investors to utilize not only the rights and protections enshrined in law, but also all other protective instruments established by any other law or legal act. It should be noted that the purpose of the presented document is to establish a legal framework in line with modern requirements for investment relations. Legal norms will apply to both local and foreign investors and investments. The draft defines the legal framework for investment in Armenia, the freedoms granted to investors and their investments, the guarantees and rights of investors and the mechanisms for protecting these rights, the obligations of investors, and the legal basis for investment incentives. A two-component guarantee of non-discrimination is established. The first is national treatment, under which foreign investors have equal rights, freedoms, and obligations with local investors. The second regime is the most favorable national treatment, under which all foreign investors in similar circumstances have equal rights. A foreign investor has the right to expect from Armenia the same favorable treatment that applies in the Republic of Armenia to any other foreign investor. Exceptions are provided only for international treaties. The draft defines guarantees for the protection of investments and investors, as well as the transparency and stability of the legal framework for investments. Such guarantees include the free movement and conversion of capital and property, ownership and other property rights to land, guarantees for the hiring of employees, dispute resolution mechanisms, access to justice, etc. Investments enjoying statutory guarantees will continue to be protected for five years. The types of investment incentives, their purpose, nature, legal grounds, and application mechanisms are established.
