Introduction

"The first wave of joint ventures with foreign investors in the former Union of Soviet Socialist Republics (the "USSR", of which Russia was then a part) began in 1987 with the adoption of two Joint Venture Decrees by the USSR Council of Ministers. Under these Decrees, joint ventures were treated as a special from of legal entity.

Initially, the potential for involving foreign investors was limited. Their stake in the joint venture's charter capital could not exceed 49 per cent, and foreign citizens could not be appointed as the chairman of the management board of the general director of a joint venture. Although these restrictions were soon abolished or loosened, still the establishment by a foreign investor of a wholly owned subsidiary in the USSR was not possible until late 1990..."

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