Under the RSFSR law "On Investment Activity in the RSFSR" of June 26, 1991 investments are cash, target-oriented bank deposits, shares, stock and other securities, technologies, machines, equipment, licenses, including those for trade marks, credits, any other property or property rights, intellectual property invested in entrepreneurial and other activities to gain profit and accomplish a positive social effect.

Investors may be Russian and foreign legal entities and natural persons as well as states and international organizations.

Investment carried out by the aforementioned investors in the territory of the Russian Federation is regulated by the Russian Federation Law "On Foreign Investments in the RSFSR" of July 4, 1991 (with modifications and amendments of December 24, 1993 and June 19, 1995) which classifies as foreign investments all kinds of tangible and intellectual property invested by foreign investors in business and other activities to gain profit (income).

Under the RSFSR law "On Foreign Investments in the RSFSR" foreign investors have a right to carry out investment in the territory of the Russian Federation through: participation in the capital of enterprises established jointly with legal entities and natural persons of the Russian Federation; establishment of enterprises fully owned by foreign investors and establishment of affiliates of enterprises of foreign legal entities; acquisition of enterprises, property complexes, buildings, structures, shares in enterprises, stock, bonds and other securities and other property which may belong to foreign investors under the legislation inn force in the territory of the Russian Federation; acquisition of rights to use land and other natural resources; acquisition of other property rights; other investment activity which is not prohibited by the applicable Russian legislation, including provision of loans, credits, property, and property rights.

The following entities and persons may be foreign investors in the Russian Federation: foreign legal entities, including, in particular, any companies, firms, enterprises, organizations or associations constituted and competent to carry out investments in accordance with the legislation of the country where they are located; foreign citizens, stateless persons, Russian citizens who permanently reside abroad provided they are registered for the conduct of economic activity in the country of their citizenship or permanent residence; foreign states; international organizations. Foreign investments may be made in any property which is not prohibited for such investments, in particular, including: newly created and modernized fixed assets and circulating capital in all branches and sphere of the national economy; securities; valuable cash deposits; scientific and technological products; rights in intellectual property; property rights.

In the Russian Federation the relations connected with foreign investments are regulated by the laws "On Foreign Investments in the RSFSR," "On Investment Activity in the RSFSR," and legislative, statutory acts and international treaties in force in the territory of Russia (Appendix 1 to the Review).

If necessary, the norms of civil law and other branches of law are applied. If international treaties in force in the territory of the Russian Federation establish other rules than those contained in legislative acts, the provisions of the international treaties will apply.