July 24, 2007 (LPAC)--According to Vedomosti, the Russian State Statistics Service reported that capital investment in Russia is rising at almost the same pace as it is in China. "This type of rapid investment growth is a first for modern Russia. Construction of new apartment buildings, investment of power companies into turbines made by Power Machines, and investment by oil and gas sector are the biggest increases.

Consider this rise in the context of a new law, submitted to the Russian Duma at the end of last week. Putin ordered the drafting of this law in 2005, and it has been repeatedly revised since.The law will regulate foreign investment in Russia, give the Russian Federal Security Service (FSB) veto power over deals, and set rules for investment into 39 newly defined "strategic sectors," the Moscow Times reported.  Foreign ownership of these sectors will be restricted to to less than 50%. According to the Ministry of Industry and Energy, these sectors include aviation, space, and atomic energy. A specially-formed government commission is planned, which will have six months to approve or deny deals in the 39 sectors.

A separate law is being devised for investment in the oil and gas sectors.