Currently, Armenia has a law on foreign investments, which does not provide a complete regulation of the investment process in accordance with modern requirements. This was stated during Thursday’s Cabinet session of the government by Deputy Minister of Economy Lilya Sirakanyan, as she presented the draft decision on approving the bill on investments.

As per Sirakanyan, one of the important features is that the regulations set out in the aforesaid bill will apply not only to foreign investors and investments, but also to local investors and investments in Armenia, while the provisions of the current law on foreign investments apply only to legal relations related to foreign investments and investors.

Thus, according to the deputy minister of economy, the bill defines a guarantee of non-discrimination in two important components: the national regime, according to which foreign investors will have equal rights, freedoms and obligations as local investors in Armenia; and the most favorable treatment regime, according to which investors from foreign countries will have similar and similarly favorable treatment in similar situations. This means that an investor from a foreign country will have the right to expect from Armenia the same favorable treatment that is available in the country towards other foreign investors.

“We have an exception; it is provided only for the Customs Union, the free-trade zone, the Eurasian Economic Union, and international market and other cases regulated by international treaties,” Sirakanyan added.  

Also, as per the deputy minister of economy, the bill establishes a guarantee of legal and physical protection, a guarantee of transparency of the legal framework for investments, establishes the free movement and transfer rights of capital and property, a guarantee of hiring employees, a guarantee of dispute resolution, access to justice, etc. in Armenia.