Investing in Russia? – Lessons learnt from the Yukos and Sanum Cases
As shown by the “Belt and Road Initiative Big Data Report (2016)” compiled by the Leading Group Office for Promoting “Belt and Road” Construction, Russia tops the list of “One Belt, One Road” countries in terms of cooperation-worthiness. With its vast domestic market, stable political environment, complete infrastructural network and friendliness towards investment from China, Russia is obviously a big magnet for Chinese investment and shows enormous potential. To achieve an optimum tax structure, facilitate financing and improve ease of exit, Chinese investors in Russia tend to use Special Purpose Vehicles in a third country or region. The following discussion of the investment structures and paths for Chinese enterprises investing in Russia is based on the Yukos series and the latest developments in Sanum v. Laos, as well as the BIT between China and Russia, with a view to better resolving any disputes.