Contract or License? Regulation of Petroleum Investment in Russia and Foreign Legal Advice
Article from: OGEL 1 (2005), in Production Sharing Contracts
Introduction
The reluctance of foreign companies to make substantial investments can be explained by the lack of stable and comprehensive legal framework for petroleum investments: uncertainty with respect to rights and obligations of the investor, as well as difficulty in predicting the economic conditions of the investment, are not an encouraging starting point for engaging in an activity which such a long term perspective as petroleum operations usually are. This means that Russian legislation based on a concession system does not represent an effective means to encourage investment in the oil ...