The regulation of foreign investment in Russia has become the focus of legislative efforts lately. A series of normative acts have been adopted, including the July 9, 1999 bill, On Foreign Investment in Russia, that is currently the basic document in this area. This law deals with the same issues treated by similar legislation in other countries: legal procedures for foreign investment, legal guarantees against political risks, tax advantages, customs duties, etc.

This law, however, does not specify mechanisms for the establishment, registration and operation of joint ventures, branches, representative offices and other legal entities with foreign investment, which considerably complicates its practical application. The interpretation of this law differs greatly between documents issued by various legislative and executive authorities.