Investment law: the impact of sanctions

Investment law should play a key role in ensuring the protection of the rights and interests of investors not only within the country, but also in the international arena. At the same time, the sanctions imposed by the West against our country have a significant impact on the investment climate in the country. They seriously reduce the level of investment activity, restrict Russia's access to foreign capital markets and increase the cost of borrowed funds for Russian companies. With the changing political and economic situation, some traditional investor protection mechanisms may become less effective or even tend to zero. In the current reality, there are a number of problems related to investment law. Firstly, there is a lack of effective mechanisms to protect the rights of investors. Secondly, it is a lack of awareness of investors about their rights and obligations. Thirdly, it is the presence of corruption schemes that may violate the rights of investors. Fourth, the political and economic will of individual States. Russia should continue to improve its legal framework, make even more efforts to create a favorable investment climate within the country and demonstrate transparency and simplicity of mechanisms to guarantee the safety of invested funds.

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Publication Details

Journal
RU SCIENCE
Published
2025-06-30
DOI
https://doi.org/10.64457/ru-science-2025-i02-a05
Primary Topic
International Arbitration and Investment Law
Type
article
Field-Weighted Citation Impact
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Investment law: the impact of sanctions

RU SCIENCE
International Arbitration and Investment Law
article

Investment law: the impact of sanctions

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Abstract

Investment law should play a key role in ensuring the protection of the rights and interests of investors not only within the country, but also in the international arena. At the same time, the sanctions imposed by the West against our country have a significant impact on the investment climate in the country. They seriously reduce the level of investment activity, restrict Russia's access to foreign capital markets and increase the cost of borrowed funds for Russian companies. With the changing political and economic situation, some traditional investor protection mechanisms may become less effective or even tend to zero. In the current reality, there are a number of problems related to investment law. Firstly, there is a lack of effective mechanisms to protect the rights of investors. Secondly, it is a lack of awareness of investors about their rights and obligations. Thirdly, it is the presence of corruption schemes that may violate the rights of investors. Fourth, the political and economic will of individual States. Russia should continue to improve its legal framework, make even more efforts to create a favorable investment climate within the country and demonstrate transparency and simplicity of mechanisms to guarantee the safety of invested funds.

RU SCIENCEVol. 13(2)
Institute of Slavic Studies (RU)
Peace, Justice and strong institutions
Openalex Percentile: Top 14%
International Arbitration and Investment Law
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