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15 May 2002
The new law determines a 'foreign investor' as any one of the following:
The registration of a foreign investment now takes place only before the local commercial court. In other words, the mandatory procedure under the previous Foreign Investment Law, which took place before the Federal Ministry for Foreign Economic Relations, has been repealed.
The new law provides that a foreign person cannot be a majority shareholder
of a company engaged in the production and turnover of armaments, nor in a company
in areas defined as restricted zones. For a minority shareholding in these companies,
the consent of the Federal Ministry for Foreign Economic Relations is still
Further, the new Foreign Investment Law provides more extensive legal certainty for foreign investors, regarding, for example, expropriation, conversion of Yugoslav dinars into foreign currencies, and the right to transfer profit and assets abroad.
Given the recent in-principle agreement between the two remaining republics
of the FRY, Serbia and Montenegro, to dissolve the FRY and create a new relationship
based only on core areas of mutual interest such as foreign policy and defence,
it is debatable how long this law will remain in force.
For further information on this topic please contact Nicholas Towle at Altheimer & Gray's London office by telephone (+44 20 7786 5700) or by fax (+44 20 7786 0000) or by email (email@example.com). Alternatively, contact Obie Moore at Altheimer & Gray's Bucharest office by telephone (+40 1 312 4950) or by fax (+40 1 312 4951) or by email (Moore.O@altheimer.ro).
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