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of the Republic of Tatarstan On Foreign Investment in the Republic of Tatarstan

The present law determines legal, economic and social conditions of attraction of foreign capital to the economy of the Republic of Tatarstan - it intends to provide rights and protection of private, financial and intellectual property of foreign investors.

CHAPTER I. GENERAL PROVISIONS

Article 1. Legislation on foreign investments

Legal regulation of relations connected with foreign investments in the territory of the Republic of Tatarstan is effected by the present law and the legislation in force in the territory of the Republic of Tatarstan.
In case when the other rules than those indicated in the present law are established by an international agreement which is in force in the territory of the Republic of Tatarstan, the rules of the international agreement are applied.

Article 2. Foreign investments and investment activities

Foreign Investments are all kinds of foreign property and intellectual values invested by foreign investors in entrepreneurial and other kinds of activities with the purpose of gaining profit (revenues).
Such values can be:
-material and non-material assets;
-monetary resources, target, banking deposits, shares, bonds and other securities.
Investment activities is the aggregate of practical actions aimed at realization of all forms of foreign investments envisaged by the present law.
The legal basis of investment activities is an Agreement.
Investment activities in free economic zones is regulated by special law of the Republic of Tatarstan.
Foreign investors may conclude concession and other contracts in accordance with the current legislation applied in the territory of the Republic of Tatarstan.

Article 3. Foreign investors

The following may be foreign investors of the Republic of Tatarstan:
foreign legal persons, including, in particular, any company, firm, enterprise, bank, organizations and their associations established and authorized to invest under the legislation of the country of their location or the country of registration;
foreign associations which have no rights of legal person, established and authorized to perform investments in accordance with the legislation of the country of their location or the country of registration;
foreign citizens, as well as citizens of the Republic of Tatarstan and the Russian Federation residing on permanent basis abroad (outside the borders of the Russian Federation), stateless persons admitted as such in accordance with the legislation in force in the territory of the Republic of Tatarstan, provided they are registered for conducting economic activity in the country of their citizenship or permanent residence;
international organizations and foundations;
foreign states.

Article 4. Subjects of foreign investments

The subjects of foreign investments can be newly established, renovated and existing basic funds, circulating assets in all branches and spheres of the economy of the Republic of Tatarstan , securities, target monetary deposits, scientific/research products, the rights for intellectual values, land and other natural resources of the Republic of Tatarstan, and other property rights.
Investment in subjects, the set up and the use of which does not meet the requirements of sanitary/hygienic, ecological and other norms established by the current legislation, and which causes harm to rights and interests of citizens, legal persons and the Republic of Tatarstan protected by law, is prohibited.
The State Council of the Republic of Tatarstan determines by the proposal from the Government of the Republic of Tatarstan the objects limited or prohibited for foreign investments, as well as the industries and the territories holding priority for such investments.

Article 5. Execution of foreign investments.

Foreign investors independently determine directions, terms and scope of investment.
Foreign investors have the right to attract citizens and legal persons on contractual basis for investment activity, as well as - in accordance with the Agreement to assign the right of ownership, use and management of their objects, and to perform all actions not prohibited by the current legislation.
Foreign investors in the territory of the Republic of Tatarstan make use of the guarantees envisaged by the present law and other legislative acts. The Government of the Republic of Tatarstan can furnish guarantees on the obligations of legal persons outflowing from their relationships with foreign investors.

CHAPTER II. STATE GUARANTEES FOR PROTECTION OF FOREIGN INVESTMENTS AND PRIVILEGES TO FOREIGN INVESTORS

Article 6. Legal treatment of foreign Investments

Foreign investments in the territory of the Republic of Tatarstan enjoy full and unconditional legal protection which is provided by the present law and other legislative acts and International agreements effective in the territory of the Republic of Tatarstan . The legal treatment of foreign investments and activity of foreign investors connected with their execution cannot be less favorable than the treatment of property, property rights and investment activity of legal persons and citizens of the Republic of Tatarstan.
A special treatment of the activity of foreign investors may be established in industries presenting a special significance for the Republic of Tatarstan.

Article 7. Guarantees against enforceable confiscation and illegal actions of state bodies and their officials

Foreign investments in the Republic of Tatarstan are not subject to nationalization, requisition or confiscation, if this is not envisaged by the legislation in force in the territory of the Republic of Tatarstan.
In case of nationalization or requisition, foreign investor will be provided with immediate, adequate and efficient compensation.
Decisions on nationalization are adopted by the State Council of the Republic of Tatarstan. Decisions on requisition and confiscation are adopted in the order established by the legislation in force in the territory of the Republic of Tatarstan.
Foreign investments are not subject to requisition, except for the cases of natural calamities, accidents, epidemics, epizootics and the other circumstances bearing extraordinary character.
Foreign investors have the right for reimbursement of losses, including lost profit, cawed to them as the result of illegal actions of state bodies of the Republic of Tatarstan or their officials, or as the result of improper execution by such bodies or their officials of the duties envisaged by the legislation.

Article 8. Compensation and reimbursement of losses to foreign investors

Compensation payable to foreign investor must correspond to the market price of the investments nationalized or confiscated which existed at the moment of adoption of the decision on nationalization or requisition.
When adopting the decision on nationalization or requisition, state bodies executing the mentioned enforcement measures, appoint an independent body or institution for carrying out the assessment of the cost of the investments withdrawn.
Compensation must be paid without unreasonable delay and in the currency in which the investments were initially made, or in any other foreign currency acceptable for foreign investor. The compensation should include the interest calculated from the date of adopting the decision on nationalization or requisition up to the very date of payment in accordance with the interest rate applied in the Republic of Tatarstan. In case such rate is absent, the interest rate applied by the National Bank of the Republic of Tatarstan is used.
Reimbursement of losses, including lost profit, caused to foreign investors as the result of nationalization or requisition is effected by the Government of the Republic of Tatarstan from the funds of the budget of the Republic.
Reimbursement of damage caused to foreign investor by illegal actions of state bodies of the Republic of Tatarstan or their officials, or as the result of improper execution by such bodies or their officials of the duties envisaged by the legislation is effected from the funds of the budget of the Republic with further reimbursement of such funds into the budget at the expense of the state bodies and officials guilty of causing the damage.

Article 9. Guarantees for transfer of payments connected with foreign investments

Foreign investors - after payment of the corresponding taxes and levies - are guaranteed free transfer of payments connected with their investments abroad, if these payments are received in foreign currency, and in particular:
-proceeds from investments gained in the form of profit, share of profit, dividends, interest, license and commission fees, payments for technical assistance and other reimbursements;
-sums payable on the basis of monetary requirements and requirements referring to the execution of contractual obligations possessing economic value;
-sums received by investors in connection with partial of full liquidation or sale of investments;
-compensations envisaged in the Article 8 of the present law.

Article 10. Guarantees for the use of payments in currency of the Russian Federation in the territory of the Republic of Tatarstan

Payments indicated in Article 9 of the present law and received by foreign investors ill roubles from sources In the territory of the Republic of Tatarstan and the other republics of the CIS using rouble as national currency can be reinvested in the territory of the Republic of Tatarstan and be used in accordance with the current legislation in force in the territory of the Republic of Tatarstan.
Foreign investors may have current and clearing accounts for keeping monetary funds in the currency of the Russian Federation in banks in the territory of the Republic of Tatarstan having the corresponding license of the Central Bank of the Russian Federation, but without the right to transfer money from such accounts abroad.
Foreign investors may use funds in roubles from such accounts for purchase of foreign currency at the domestic exchange market in the order envisaged by the legislation in force in the territory of the Republic of Tatarstan.

Article 11. Guarantees against cases of changing the legislation

The Republic of Tatarstan guarantees protection of rights of foreign investors and conditions of foreign investing.
In cases the Republic of Tatarstan adopts legislative acts containing norms worsening the status of foreign investors, and the conditions of their commercial activity, the corresponding norms of such acts will apply to foreign investors already conducting investment activity in the territory of the Republic of Tatarstan only three years after such acts were enforced.
The present provision does not cover the cases of changing the legislation referring to defense, national security and public order; export and import of licensed and strategically significant raw materials: protection of environment and anti monopolistic legislation.

Article 12. Guarantees in case of cessation of foreign activity

Foreign investor has the right in case of cessation of investment activity to return investment funds made by him and connected with them proceeds in monetary and commodity form at the market cost at the moment of cessation of investment activity, except for the sums and other material values which were used or lost as the result of actions of foreign investor himself or actions done with his participation.

Article 13. Promotion of foreign investments

The following measures on promotion of foreign investments can be taken in the order established by law as regards foreign investors:
-measures in taxation (reduced tax rates, tax holidays, tax exemptions, delay in tax payment, accelerated depreciation, other measures referring to fees on social insurance and investment reserves);
-financial measures such as loans on easy terms (credits), guarantees for loans;
-conversion of the debt into shares (advantages from discounting of the debt accumulated by foreign investors);
-other non-financial measures (assistance in creation of Infrastructures governmental contracts on privileged terms and rendering certain services).

Article 14. The right of foreign investors for additional tax privileges and guarantees, and procedure of approving investment projects

Foreign investors have the right to get additional privileges and governmental guarantees for investment projects presenting a special significance for the economy of the Republic of Tatarstan in case of getting approval for such projects by the Government of the Republic of Tatarstan.
Investment projects approved by the Government of the Republic of Tatarstan are certified by the Resolution on granting the investment project with the status "approved investment project".
Investments projects having the status of "approved investment project" are granted with treatment of reduced tax payment within the current legislation and necessary special governmental guarantees for provision of investment protection in addition to guarantees envisaged by the present law.
To receive the status of the "approved investment project", before receiving approval of the Government of the Republic of Tatarstan, foreign investment projects are subject to governmental expertise in the Interdepartmental expertise Commission or another specially authorized body.
Governmental expertise of foreign investment projects may be carried out independently of the form of the organization conducting investment activity with the following documents to be submitted:
-written application of a foreign investor with request to conduct governmental expertise of the investment project with indication of the legal address and legal status of the foreign investor;
-description of the Investment project made in accordance with the developed standard form, including feasibility study, organizational/legal form of investments, investment property, cost of investments, working scope of investments (current and long-term), placement of investments.
Interdepartmental Expertise Commission or another specially authorized body must present its opinion to the Government of the Republic of Tatarstan within 30 days after the application was submitted.

Article 15. Insurance of property and risks

Insurance of property and risks of enterprises with foreign investments is performed at their choice, if obligatory insurance is not envisaged by the current legislation applied in the territory of the Republic of Tatarstan.
A specific portion of expenses connected with insurance of property and activity can - at the decision of the Government of the Republic of Tatarstan - be covered from the state budget funds within the limits specified by the State Council of the Republic of Tatarstan.

CHAPTER III. SETTING UP AND LIQUIDATION OF COMPANIES WITH FOREIGN INVESTMENTS

Article 16. Organisational/legal forms and types of enterprises with foreign investments

Enterprises with foreign investments are set up and act in the territory of the Republic of Tatarstan in the form of joint-stock companies and partnerships and other organizational and legal forms envisaged by the legislation in force in the territory of the Republic of Tatarstan.
The following enterprises may be set up and perform its activity in the territory of the Republic of Tatarstan:
-enterprises with the shares of foreign investments (enterprises with mixed capital) and their daughter companies and branch offices;
-enterprises, fully owned by foreign investors, their daughter companies, other independent divisions, branch offices;
-branches of foreign legal persons.
Specific features of the foundation of banks with foreign investments are stipulated by the legislation on banks and banking activity in force in the territory of the Republic of Tatarstan.

Article 17. The procedure of setting up enterprises with foreign investments

Enterprises with foreign investments may be set up either by means of foundation or by acquisition by foreign investor of a share in the enterprise which was earlier set up without foreign investments or by full acquisition of such enterprise.
The minimum authorized fund of the enterprises with foreign investments, subject to registration in accordance with the procedure envisaged by present law, is determined by the Government of the Republic of Tatarstan.
Enterprise with foreign investments is established according to the procedure, envisaged by the legislation in force in the territory of the Republic of Tatarstan.
Acquisition by foreign investor of a share in the enterprise which was earlier set lip without foreign investments, and full acquisition of such enterprise is effected in the order envisaged by the legislation in force in the territory of the Republic of Tatarstan.

Article 18. Expertise of enterprises with foreign investments

Prior to the establishment of enterprises with foreign investments connected with large-scale construction and reconstruction activities, as well as the implementation of the projects having impact on ecology an expertise is carried out.
In certain cases the establishment of enterprises with foreign investments requires the opinion of sanitary/epidemiological services and the carrying out of ecological expertise. All kinds of expertise and granting permissions are executed in regular order envisaged by the legislation in force in the territory of the Republic of Tatarstan.

Article 19. Foundation documents of enterprises with foreign investments

Foundation documents of enterprises with foreign investments specify the subject and the aims of the enterprise activity, the list of participants, the amount, terms and procedure for formation of authorized fund, including formation in foreign currency, the size of the participants' shares, the procedure of making contributions and assessment, the order of distribution of revenues, structure, composition and competence of managerial bodies, procedure for decision making, the list of questions without a dissenting vote, procedure for enterprise liquidation. Besides, the other provisions may be included into foundation documents in case they do not contradict the legislation in force in the territory of the Republic of Tatarstan and reflect the peculiar features of the enterprise operation. Assessment of the contributions made into the authorized fund may be carried out both in roubles and in foreign currency in terms of roubles according to the exchange rate of the Central Rank of the Russian Federation applied at the moment of making payments and contributions.
Contributions into the authorized funds of the enterprises with foreign investments expressed in the form of property are assessed being agreed upon between its participants on the basis of the prices of the world market. !n case such prices are absent, the cost of the contributions is determined as agreed upon between the participants.

Article 20. Daughter companies of enterprises with foreign investments

Enterprises with foreign investments may establish daughter companies in the Republic of Tatarstan and outside the Republic.
Daughter companies in the territory of the Republic of Tatarstan are set up as legal persons in accordance with the legislation in force in its territory.

Article 21. Branch offices and representations of enterprises with foreign investments

Enterprise with foreign investments may establish its branch offices, representations and other separate divisions in the territory of the Republic of Tatarstan and outside the Republic.
In the territory of the Republic of Tatarstan, branch offices, representations and other separate divisions are set up in accordance with provisions stipulated by current legislation on establishment of the enterprises.
They are not legal persons and act on the basis of provisions referring to them and confirmed by the founder enterprise, and are entitled to open accounts in the hank institutions of the Republic of Tatarstan.

Article 22. Association of enterprises with foreign investments

Enterprises with foreign investments may - on conditions and in the order envisaged by the legislation in force in the territory of the Republic of Tatarstan - unite into unions, associations, concerns, consortiums, inter- branch, regional and other associations, including ones with participation of legal persons of the Republic of Tatarstan and join the earlier established associations.

Article 23. State registration of enterprises with foreign investments

Enterprise with foreign investments is subject to state registration which is carried out by the authorized state body and - from the date of its registration- acquires the rights of a legal person according to the legislation of the Republic of Tatarstan. Enterprises with foreign investments are registered with the following documents being submitted:
1. For enterprises with mixed capital:
a) Founder's written application with request to register the enterprise;
b) Notarially certified copies of foundation documents, in duplicate;
c) Decision on the foundation of the enterprise made by the property owner and the body authorized by him;
d) Notarially certified copies of foundation documents for each legal person of the Republic of Tatarstan participating in the set up of joint venture;
e) The certificate of foreign investor's solvency issued by his servicing bank or other credit and financial institution (with a Russian copy certified in Russian (Consular Offices in the country of foreign investor registration);
f) Extract from Trade. Register of the country of origin or any other adequate certificate of foreign investor legal status in accordance with the legislation in force in the country of his staying, citizenship or permanent residence (with a Russian copy certified in Russian Consular Offices in the country of foreign investor registration);
g) Expert's opinion in cases stipulated by law.
2. For enterprises fully owned by foreign investors:
a) Written application with request of foreign investor to register his enterprise;
b) Notarially certified copies of Charter in duplicate;
c) Certificate of foreign investor solvency issued by his servicing bank or other credit and financial institution (with a Russian copy certified in Russian Consular Offices in the country of foreign inventor registration);
d) Extract from Trade Register of the country of origin for foreign investor (with a Russian copy certified in Russian Consular Offices in the country of foreign investor registration);
e) Expert's opinions in cases stipulated by law.
3. For the branch offices of the enterprises with foreign investments and branches of foreign legal persons:
a) Application with request for registration signed by the leader of the enterprise setting up its branch office;
b) Extracts from the decision on setting up branch office made by competent bodies of the enterprise management;
c) Notarially certified copies of provision on branch office, in duplicate;
d) Notarially certified copies of foundation documents of the enterprise, setting up its branch office;
e) For foreign legal person - extracts from Trade Register of the country origin or other adequate proof of his legal status in accordance with the legislation in force in the territory of the country of his residence (with a Russian copy certified in Russian Consular offices in the country of foreign investor registration);
f) Expert's opinion in cases, stipulated by law.
State registration also covers significant additions and amendments to the foundation documents referring to changes of the authorized fund, the list of participants and subject of activity of registered enterprises with foreign investments and branch offices, information on their liquidation.
Enterprise with foreign investments presents a notarially certified copy of the decision of the enterprise competent body on amendments and additions to the foundation documents to the registration body not later than in 30 days after their adoption. The above amendments and additions to the foundation documents come into force only upon their registration.
The information on the registration of enterprises with foreign investments is included into the State Register of the Republic of Tatarstan.
For enterprises with foreign investments the authorized fund of which is smaller than the established one, the Government of the Republic of Tatarstan applies a simplified procedure of registration determined by the current legislation of the Republic of Tatarstan.

Article 24. Terms of registration of enterprises with foreign investments

The authorized state body must register an enterprise with foreign investments in 21 days upon submission of the application or advise applicant on the reasons of denial.
Registered enterprise with foreign investments is given a certificate of registration of the established form.
Enterprise with foreign investments is considered to be established upon the moment of its state registration. The information on registration is reported to the local authorities. The report on registration is published in press.

Article 25. Denial to register enterprise with foreign investments

Denial to register enterprise with foreign investments is possible in case of violating the order of establishment of such enterprise envisaged by the legislation in force in the territory of the Republic of Tatarstan or in case of absence of the documents required for the registration. Denial to register enterprise may be appealed against in the legal form.

Article 26. Termination of activities of enterprises with foreign investments

Termination of the activities of enterprises with foreign investments is executed by means of its liquidation or reorganization.
Reorganisation of enterprises with foreign investments is carried out by means of merger, incorporation, separation, isolation, reorganization into the other organizational/legal form in accordance with the current legislation.
Enterprise with foreign investments are liquidated in cases and in the order envisaged by the legislation in force in the territory of the Republic of Tatarstan.
If upon the expiration of one year from the registration there is no document- substantiated fact that each participant contributed 50% of deposits stipulated in the constituent documents to the authorized capital, the body which registered this enterprise declares it invalid and makes decision on its liquidation.
The report on liquidation of the enterprise is published in press. The time- limits for making contribution may be extended by the Government of the Republic of Tatarstan.
Decision on liquidation of enterprises with foreign investments is made on the basis of the Act issued by the liquidation commission.
Decision on liquidation of enterprises with foreign investments may be appealed against in the legal form.

CHAPTER IV. TYPES AND FORMS OF ACTIVITIES OF ENTERPRISES WITH FOREIGN INVESTMENTS

Article 27. Types of activity

Enterprises with foreign investments may undertake any kinds of activity meeting the purposes envisaged in the Charter of the enterprise with exception for ones prohibited by the current legislation.
To perform the activity subject to licensing, enterprises with foreign investments must execute a special license in the order established by legislation. Proceeds gained from activity carried out without the license are withdrawn into the local budget.

Article 28. Export and import of goods and services

Enterprises fully owned by foreign investors and enterprises with foreign investments have the right at their own discretion to export the products they make and import the products for their needs in the order and on conditions determined by the legislation in force in the territory of the Republic of Tatarstan.
Customs regulation is executed in accordance with the legislation in force in the territory of the Republic of Tatarstan.

Article 29. Accelerated depreciation at enterprises with foreign investments

The Government of the Republic of Tatarstan has the right to provide enterprises with foreign investments with the opportunity of accelerated depreciation (to use the increased rates of depreciation allocations).
The order and terms of accelerated allocations are determined by the Government of the Republic of Tatarstan. In case of termination of the activity of the legal person with participation of foreign investments before the period specified in the application is over, the funds formed as the result of accelerated depreciation are withdrawn into the relevant budget.

Article 30. Taxation

Enterprises with foreign investments as well as foreign investors must pay taxes and have the right for all privileges established by the legislation in force in the territory of the Republic of Tatarstan.

Article 31. Inspection for taxation purposes

Inspection for the purpose of taxation of financial and commercial activity of the enterprises with foreign investments is carried out by relevant authorized state bodies of the Republic of Tatarstan. For the purposes of property and activity analysis both auditing agencies of the Republic of Tatarstan and foreign auditing agencies can be engaged, at the discretion of enterprises with foreign investments.

Article 32. Accounting and reporting

Accounting and reporting of the enterprises with foreign investments in the Republic of Tatarstan are carried out in accordance with the regulations established in its territory, and optionally also in accordance with the regulations in force in the country of origin of the foreign investor.
For the purposes of balance assessment and accounting the enterprise with foreign investments carries out the conversion of foreign currency into roubles at the official exchange rate fixed by the (central Bank of the Russian Federation applied at the moment of making payments and recalculations.

Article 33. Security of obligations

Enterprise with foreign investments can use its property as a security by all kinds of its obligations. For security of obligations its property rights can be used.

Article 34. Financial, credit, currency and settlement operations

Enterprises with foreign investments perform financial, credit and settlement operations in accordance with the legislation in force in the Republic of Tatarstan. Currency operations are performed by enterprises with foreign investments in the order established by the legislation in force in the territory of the Republic of Tatarstan.

Article 35. Intellectual property rights

Protection and realization of intellectual property rights of enterprises with foreign investments are provided in accordance with the legislation in force in the territory of the Republic of Tatarstan and international agreements.
Enterprises with foreign investments may conclude agreements with their employees in respect of rights of intellectual property objects. Enterprise has the right to use invention, industrial sample or trademark on the terms determined by the agreement with author/patent owner.
The patent for invention, industrial sample, trademark, and other objects of intellectual property is given to enterprise upon conclusion of relevant agreement between the employee and the enterprise.
Enterprise with foreign investments independently makes a decision on the patenting abroad of inventions and industrial samples belonging to it.

Article 36. Labour relations

Enterprises with foreign investments independently make decisions on the issues of appointment and dismissal of employees, work and rest schedule, terms of remuneration of labor, guarantees and compensations, whereas it is prohibited to worsen the position of enterprise employees as compared with conditions envisaged by legislation in force in the territory of the Republic of Tatarstan. Labor relations are regulated by collective agreement and individual labor agreements (contracts).
The workers and employees, managerial bodies of enterprises with foreign investments may include foreign citizens. The terms of employment, work and rest, as well as pension coverage for foreign employees are negotiated in the individual labor agreement personally. The salaries and wages received by foreign employees in foreign currency can be transferred abroad upon payment of income tax.

Article 37. Social security and social insurance for employees of enterprises with foreign investments

Social insurance for employees of enterprises with foreign investments and their social security (excluding pension coverage of foreign employees) are regulated by the norms of legislation in force in the territory of the Republic of Tatarstan.
Payments for pension coverage of foreign employees of enterprises with foreign investments are remitted to the relevant funds of their countries of permanent residence in foreign currency and on terms of these countries.
Enterprises with foreign investments contribute allocations for state social insurance of employees and allocations for pension coverage at the rates established for enterprises and organizations of the Republic of Tatarstan.

Article 38. Control over the activity of enterprises with foreign investments

Control over the observance of legislation in force by enterprises with foreign investments is carried out by authorized state bodies within their competence, whereas state controlling bodies should not infringe the rights granted to enterprise with foreign investments and interfere with its production activity.

Article 39. Obligations of enterprises with foreign investments

In case of non-execution or improper execution of contractual obligations, violation of credit-settlement or taxation procedures, production quality requirements, other regulations established for carrying out entrepreneurial activities, enterprise with foreign investments bears the responsibility in accordance with legislation in force.
Enterprise with foreign investments is liable for its obligations by all its own property.
Republic of Tatarstan is not liable for obligations of enterprise with foreign investments, and enterprise with foreign investments is not liable for obligations of the Republic of Tatarstan.

CHAPTER V. ACQUISITION OF PROPERTY RIGHTS BY FOREIGN INVESTORS AND ENTERPRISES WITH FOREIGN INVESTMENTS

Article 40. Acquisition of property rights

Foreign investors and enterprises with foreign investments enjoy the right to acquire as property in the territory of the Republic of Tatarstan buildings, facilities, equipment, other personal and real property, necessary for achieving the purposes of their activities, in accordance with the legislation of the Republic of Tatarstan.

Article 41. Acquisition of share, stocks and other securities

Foreign investors and enterprises with foreign investments enjoy the right to acquire shares, stocks and other securities of enterprises located in the territory of the Republic of Tatarstan, both for roubles and foreign currency.
Acquisition of shares, stocks and other securities is subject to registration in the relevant authorized state bodies. Acquisition of state securities can be performed by permission of relevant authorized state body.

Article 42. Participation in privatization

Foreign investors can participate in privatization of state-owned or public enterprises as well as objects of incomplete capital construction in the territory of the Republic of Tatarstan in accordance with legislation in force.
Participation of enterprises with foreign investments in privatization is regulated by legislation in force in the territory of the Republic of Tatarstan.

Article 43. Ownership of land lots and the right to use other natural resources

Land lots may be in the property of foreign investors and enterprises with foreign investments. The right to use natural resources of the land lots in property of foreign investors and enterprises with foreign investors is determined by the legislation in force in the territory of the Republic of Tatarstan.

CHAPTER VI. PROCEDURE FOR SETTLING DISPUTES

Article 44. Procedure for settling disputes

Investment, disputes including those concerning the amount, terms or procedure of compensation payments are settled in the Supreme Court of the Republic of Tatarstan or in the Supreme Arbitration Court of the Republic of Tatarstan, if not envisaged otherwise by an international agreement in force in the territory of the Republic of Tatarstan.
Disputes of foreign investors and enterprises with foreign investments with state bodies of the Republic of Tatarstan, enterprises, public organizations and other legal persons of the Republic of Tatarstan, disputes between investors and enterprises with foreign investments on the issues of their economic activities, as well as disputes between the participants of enterprise with foreign investments and the enterprise itself are subject to consideration in the Supreme Arbitration Court of the Republic of Tatarstan or, when agreed by the parties, in arbitration tribunal or other body at their discretion.
International agreement of the Republic of Tatarstan can envisage reference to international means of settling disputes arising in connection with implementation of foreign investments in the territory of the Republic of Tatarstan.

Mintimer Shaimiev,
President of the Republic of Tatarstan

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