STARWOOD HOTELS INCREASED portfolio in India to 60% by 2013

15 new hotels will strengthen Starwood's position as the largest U.S. operator of hotels of category upper-upscale and luxury in the country

Mumbai, May 2010 - Hotel chain Starwood Hotels & Resorts Worldwide, Inc. announced plans to increase the portfolio of hotels in India 60% / Now them 26 / 2013. This became known before the President and CEO Frits van Paasshen / Frits van Paasschen / and a group of network managers went on a two-week tour of the country to explore the hotel owners, developers and team members.

"India is a key area for expansion. This is largely due to a lack of hotels in the hospitality market, - says Wang Paasshen. - To understand the situation we can take into account that in India with a population of one billion people in the presence of 100,000 rooms, in the While one New York City - about 80 thousand. "

Starwood Company started its operations in India in 1973 with the debut of a brand Sheraton in Mumbai. Since then, the company increased its portfolio to 26 hotels under the brand Westin, Sheraton, Four Points by Sheraton, The Luxury Collection and Le Meridien and became the largest U.S. operator of hotel categories upper-upscale and luxury.

Today, Starwood network and its partners in the construction stage are 15 hotels in India, including six hotels Aloft, three of which will open later this year. In addition to the opening of these hotels, Starwood continues to assist in the formation of infrastructure and career opportunities. In fact, hotel network, opened in the period from 2007 through 2010, will create more than four thousand jobs.

It should be noted that in terms of future growth rates for the company in the Asia-Pacific region, India is ahead of only China, with the region's largest market for the development of the hotel chain.

"Comparing China and India can be dangerous, and you can still see some similarities - adds Van Paasshen / Frits van Paasschen /. - If you recall, the whole world thought China would" place the future "for 20 years before we saw an economic boom . That's how we think about India. traced all the signs and trends that show that in the next ten years should be just in India, and we are proud to have a presence in the local market for almost 40 years. "

Today, India remains relatively underdeveloped market of travel in terms of the flow of foreign tourists. Each year, the country is visited by approximately five million travelers, while China is coming more than 50 million. Nevertheless, the revival of the Indian middle class has led to a marked increase in demand for domestic tourism, and the flow of outsourcing agreements, including a contract with Starwood, should lead to an increase in international tourism.

"India is one of the most promising markets in the Asia-Pacific region. According to the forecasts of GDP growth will exceed 7% over the next two years, while the consumer market will be the fifth largest in the world by 2025 - said Miguel Ko / Miguel Ko /, Chairman of the Board of Directors and President of Starwood Asia-Pacific region. - This relatively underdeveloped hotel market - fertile ground for our luxurious high-end brands, and we look forward to expanding its presence in this country. "

About

Starwood Hotels & Resorts is one of the leading companies in the field of tourism and recreation from 1000 Hotels in more than 100 countries and staff, numbering 145,000 people. The company Starwood Hotels & Resorts - the owner, the owner and the owner of hotels, resorts and residences of the following brands: St. Regis ®, The Luxury Collection ®, W ®, Westin ®, Le Meridien ®, Sheraton ®, Four Points ® by Sheraton, and the recently discovered Aloft ® and Element SM. Company Starwood also owns Starwood Vacation Ownership, Inc., Which is one of the main developers of service allows a temporary rental apartments premium.

Insurance and Capital Protection Group

Insurance- A special kind of economic relations to ensure protection of the insured persons and their cases from various dangers.

Insurance in the broad sense – includes various types of insurance and protected business (actually insurance, or primary insurance, Reinsurance, coinsurance), Which in combination provide insurance protection.

Insurance in the narrow sense is a relationship (between policyholder and insurer) To protect the property interests physical and entities (policyholders) upon the occurrence of certain events (insurance claims) At the expense of funds (hedge funds) generated from insurance premiums paid by them (premium).

The economic essence and functions of insurance (Capital Protection Group)

The economic essence of insurance is to provide insurance protection. Insurance protection can be explained as a two-sided reaction of mankind to the possible danger of natural, technological, economic, social, ecological, capital and other descent. On the one hand, the insurance cover is called an objective requirement of natural and legal persons in maintaining their property interests associated with different aspects of life. On the other hand, this need is accompanied by a corresponding ability of people to ensure the above interests.

If the need for capital protection is generated by fear, and the ability to protect the knowledge because of this fear, the need for appropriate natural or monetary funds with which to ensure the safety of property, personal and other interests of the people, then we can say that will take effect the system of insurance protection.

Thus, insurance protection can be defined as the perceived need physical and Legal persons in the establishment of special insurance fund for the restoration of property, health, disability and personal income as the participants in the creation of these funds, and third parties.

Public practice over a long period of time developed three basic forms of organization of the insurance fund:

1. Centralized insurance (reserve) funds created by budget and other public funds. Formation of such funds is carried out both in kind and in cash. National Insurance (Reserve) Funds are available to the government.
2. Self – a system of creation and use of insurance funds, economic entities and individuals. These decentralized insurance funds are in-kind and cash. These funds are intended to overcome the temporary difficulties in the activities of a specific producer or Rights. The main source of decentralized insurance funds are income Enterprise or individual.
3. Actually insurance as a system of creating and using the funds of insurance companies at the expense premiums interested in insuring the parties. The use of these funds is carried out to recover damages incurred in accordance with the terms and insurance rules.

At present, substantially changes the ratio between centralized, decentralized funds and funds of specialized insurance companies. The shift occurs in the direction of strengthening the role of insurance.

Thus, the economic essence of insurance is to provide cash funds by contributions from interested parties in the insurance and for damages from persons involved in the formation of these funds. Because the potential damage (or insurance risk) Has a probabilistic nature, it is a redistribution of the insurance fund in space and in time. One can say that the compensation of the injured persons is due to contributions from all those who participated in the formation of these insurance funds.

Excrete following function of insurance Expressing the social purpose of this category:

1. Risk-taking function which consists in providing insurance protection against various Risk- Random events that lead to losses. As part of this function is the redistribution of financial resources among all participants of insurance. This feature reflects the main purpose of insurance – protection Risk.
2. Investment function which consists in the fact that the expense of temporarily free funds of insurance funds (insurance reserves) Is financing the economy. Due to the fact that insurers accumulate in a large amount of funds that are intended to redress, but until then, has not yet come insurance case they may be temporarily invested in various securities, Property and other areas. Volume investment insurance companies in the world is around 19 trillion U.S..
3. The warning function insurance is that from part of an insurance fund financed activities to reduce insurance risk. For example, at the expense of the funds collected in fire insurance, Funded fire prevention measures and activities aimed at reducing the possible damage from fire.
4. Savings function. In life insurance category of insurance are most approaches to the category Loan Because there is an accumulation of insurance contracts certain insurance amounts. Conserve cash, for example through endowment policy due to the need for insurance protection made by the family income. Thus, insurance may have a savings feature.
5. Monitoring function Insurance is enclosed in a strictly target the formation and use of the insurance fund. This feature follows from the above and appears simultaneously with a specific insurance relationship, in terms of insurance. In accordance with the control function on the basis of legislative and guidance documents carried insurance financial control over the correct conduct of insurance operations.

Modern state is widely used category of insurance in the form Social Insurance and pensions for public insurance to protect citizens in case of illness, disability (including age), loss of breadwinner, death. However, the organization and activities of the state social insurance funds, pension funds are regulated by special law, different from the legislation governing the activities of the specialized insurance companies, that is actually insurance, and the scope of this article.

Insurance Organization

Principles of organization of insurance business (Capital Protection Group)

The main feature of the fundamental organization of insurance business in the modern period (in contrast to the Soviet period) is its monopolization and development Competition insurance companies. Along with the state insurance emerged and developed private insurance. Competition. Usually refers to voluntary insurance.

Competition encourages insurance companies to develop and implement new insurance Constantly improve them, expand the range and cover additional segments of the insurance market. In conducting the same kinds of insurance competition between insurance companies is expressed in the establishment of suitable forms of contract and payment premiums, Reduction of tariff rates, prompt payment of insurance compensation and insurance coverage.

Competition in all areas – the main condition for the transition to market economy. However, insurance – a special kind of activity designed to provide insurance protection to individuals and legal entities. Therefore important to organize insurance to insurers not ruined, did not cease their activities. This is accomplished by special methods of state regulation of insurance activities, as well as the development of a clear legal and economic foundations of insurance. Hence second principle – the need for state regulation of insurance activities, based on a solid legal and economic foundations.

Competition in the insurance, the inherent competition, can not be regarded as an absolute category. In many cases, especially when taking large risks insurance, requires the cooperation Insurers. This cooperation takes the form coinsurance and Reinsurance. An important principle of organization of insurance as part of international economic relations is International cooperation in the field of insurance, which is caused by objective necessity in terms of deepening and expanding economic relations. Thus, the cooperation of insurance companies both domestically and abroad is also an important principle of organization of insurance business.

Organizational and legal form of insurance (Capital Protection Group)

Along with the state insurance emerged and developed insurance, produced by private companies of various organizational and legal form (stock companies, limited liability company etc.). Legislation Russia does not establish any exceptions regarding the organizational and legal forms of insurance companies. The only requirement is that it was entity.

The founders of the insurance company can be both physical and Legal persons, including foreign ones.

In insurance, there is a special form of creation of an insurance organization in the form of mutual insurance societies (DER). Rooted in the historical past, mutual insurance societies had specific organization, asset ownership and management have successfully compete in today’s insurance market of many countries with joint-stock insurance companies. Mutual Insurance Society- This organizational form of insurance protection, whereby each Policyholder is also a member of the insurance company, that is, is an association of insurers in order to provide mutual assistance. He, to a lesser extent, inherent in the commercial orientation than equity or private insurance.

One form of commercial co-operation of insurance companies is to co-insurance (coinsurance). In developed form, this leads to the creation Pools, Insurance, unions, clubs. The purpose of their creation – providing methodical and organizational assistance to its founders, the coordination of their activities for various types of insurance, participation in the preparation of legislation, promotion of scientific developments.

Measures of state regulation of insurance activity (Capital Protection Group)

Government regulation is an essential element and the principle of organization of insurance business in any country. The purpose of state regulation is to ensure the formation and development of an effective Market insurance services, creating the necessary conditions for the activities Insurers various organizational and legal forms, protecting the interests of Insurers.

The system of government regulation is the following.

1. Licensing- Registration of insurance companies and issuing them Licenses to conduct certain types of insurance. License to conduct insurance business issued in accordance with the Terms of the licensing of insurance activities on the territory of Russia. These conditions determine:

• The form of license and its details;
• Requirements for the licensee (the fact of registration as a legal entity, the fact of payment of the authorized capital and the requirements for its size depending on the type of insurance);
• A list of documents applied to the application for a license (constituent documents, Proof of payment share capital, A business plan for the first year of operation, the calculation of the ratio of assets and liabilities on the appropriate form, a statute on the formation and use of insurance reserves, If necessary, plan Reinsurance, Balance with the application report on the financial results of the last reporting date, the deployment plan of insurance reserves, the rules on types of insurance, calculation insurance rates on the appropriate form, information about the director and his deputy);
• Procedure for examination of documents and issuance of license;
• How to publish information about the insurer licensed.

For the issuance of the license fee is charged in the established order, which comes in budget. In identifying violations of the insurance organizations state agency oversight of the insurance business has the right to suspend or restrict a license or take a decision on its withdrawal. Refusal to license its review, suspension and limitation of actions may be appealed to court.

1. Control to provide the financial stability of insurers. There are five basic factors that ensure the financial stability of insurance company:

• sufficient equity;
• amount of obligations (including technical reserves);
• allocation of assets;
• portfolio Risk Transferred to Reinsurance;
• tariff policy.

More questions of financial stability of insurance companies considered in a special article.

1. Develop forms and procedures of statistical reporting and monitoring the timely submission of financial statements of insurance companies.

1. Taxation Insurers and Insurers.
2. Other measures of state regulation of insurance activity.

Main public authority Exercising control and supervision of insurance activities is Federal Insurance Supervision Service (FSIS) Ministry of Finance.

The main functions of this body are:

• Issuance of licenses for insurance activities;
• Maintaining the Unified State Register of insurers and their associations;
• Roster Insurance Brokers;
• Establishing, in consultation with RF Ministry of Finance and RF State Committee on Statistics of accounts and rules Accounting, Indicators and forms of insurance operations, accounting and reporting;
• The timing of publication of annual Balance and accounts profits (losses) Insurers;
• Monitor the adequacy insurance rates and providing solvency Insurers;
• Establishment of rules of formation and placement of insurance reserves;
• Development of regulatory and methodological documents relating to the insurance activities within the jurisdiction;
• Summary of insurance practices, the submission of proposals to improve the RF legislation on insurance.

FSIS Regulated law are as follows:

• Obtaining necessary to perform the functions of information from insurers, businesses, institutions and citizens;
• Audit compliance by insurers federal legislation;
• Restriction of the licenses of insurers who violate the laws of Russia;
• Circulation tribunal a claim on the Elimination of insurers

Classification insurance

Destinations, industry sub-sectors and types of insurance (Capital Protection Group)

There are different approaches to the classification of insurance business. In most countries of the world have identified two types of insurance: Life Insurance (Eng. life insurance) And types of insurance, non-life insurance (Eng. non-life insurance). This classification is used in the development of legal documents, analyze the insurance market and other issues.

In accordance with the Civil Code (Part II, Chapter 48 – Insurance) provides for two types (two types of contracts) of insurance: property and personal.

In the practice of insurance companies, insurance analysis, learning and teaching materials also agreed to provide three categories of insurance: property, personal and liability. The basis of division of insurance industry are differences in the objects of insurance.

In personal insurance the object of insurance is the property interests associated with the life, health, capacity for work and pensions policyholder or the insured person. The personal insurance include:

1. Life Insurance.
2. Insurance against accidents and diseases.
3. Health Insurance.

In property insurance the object of insurance is the property interests associated with the ownership, use and disposal of the property.

Property insurance includes:

1. Property insurance companies and organizations.
2. Citizens Property Insurance.
3. Transport insurance (means of transport and cargo).
4. Insurance other types of property other than those listed above.
5. Insurance of financial risks.

In the liability insurance of insurance are subject to property interests related to compensation for harm caused to the insured person or property of an individual, as well as damage caused by entity.

Liability insurance includes:

1. Liability of vehicle owners.
2. Liability insurance carrier.
3. Liability insurance companies – sources of increased danger.
4. Professional Liability Insurance
5. Liability for failure to perform obligations.
6. Insurance other types of civil liability.

The basis of division of insurance industry are fundamental differences in the objects of insurance. The division of insurance industry does not allow to identify the specific interests of the insurance of individuals and entities that make it possible to carry out insurance. For the concretization of these interests are separated from the insurance industry sub-sectors and insurance.

Type of insurance called insurance-specific homogeneous sites in a certain amount of insurance liability under the relevant tariff rates. The insurance relationship between the insurer and the insured carried out on insurance types. Here are just some examples, the most common of insurance.

As the types of personal insurance of citizens may be named:

- Mixed life insurance;

- Insurance of children;

- Insurance against accidents;

- Insurance against death and disability;

- Additional pension insurance;

- Health Insurance;

- Other types of personal insurance.

The types of liability insurance are:

- Motor insurance (owner of vehicle);

- Employer’s liability insurance in case of injury to health;

- Insurance of personal liability to third parties due to the negligence of the insured or his family;

- Product liability insurance product (the mediator or the seller) to consumers and others for injury, illness or loss (damage) arising from the delivery of goods;

- Insurance and indemnity;

- Professional liability insurance ( lawyers, notaries, doctors and other professionals);

- Other types of liability insurance.

The types of property insurance, for example, are:

- Insurance of property from fire;

- Insurance of property from the storm;

- cargo insurance;

- Insurance against losses due to stoppage of production;

- Insurance of certain types of vehicles;

- Many other types of property insurance.

Insurance Forms (Capital Protection Group)

Along with the classification of insurance sectors, subsectors and types of isolated forms of insurance .

Compulsory insurance (Capital Protection Group)

Compulsory called such insurance when the state establishes mandatory introduction of appropriate terms of policyholders in insurance premiums. Mandatory form of insurance subject to the priority items of insurance coverage, that is, when the need for compensation for material damages or otherwise providing financial assistance not only hurt the interests of a particular victim, but also the public interest. Civil Code (Art. 927) provides for mandatory state insurance, which is carried out by insurance companies at the expense of state budget funds, and mandatory insurance, which should be at the expense of other sources.

Examples of compulsory insurance:

- Health Insurance;

- Insurance of military personnel;

- Insurance of passengers;

- Motor insurance;

- Professional liability insurance for certain professionals (eg, notaries in the RF).

Compulsory insurance is established by law, under which insurer obliged to insure the appropriate objects, and insured- Due to make insurance payments.

• The law generally provides for:
• list of objects subject to compulsory insurance;
• insurance cover;
• level of insurance coverage or regulations;
• the setting of tariff rates or the average difference between these rates with the provision of the right of their differentiation in the field;
• frequency of making insurance payments;
• basic rights and duties of the insurer and the insured.

Compulsory insurance provides, as a rule, continuous coverage specified in the law of objects. For example, if provided for compulsory insurance of passengers of the means of transport are obliged to insure everything, who is going to travel.

For compulsory insurance, as a rule, regulation provides insurance coverage

Voluntary insurance (Capital Protection Group)

Voluntary insurance is valid under the law on a voluntary basis. The law may determine to be voluntary insurance facilities and the most common insurance terms. Specific conditions are governed by insurance regulations that are being developed insurer.

Voluntary participation in insurance fully characterized only Insurers. For example, at the conclusion contracts of personal insurance insurer has no right to abandon the insurance object, if the will of the insured does not contradict the conditions of insurance. This ensures conclusion insurance contract upon request of the insured. However insurer not obliged to conclude insurance on the terms proposed by the policyholder.

For voluntary insurance is characterized by a selective (not exhaustive) coverage of the insured arising from the fact that not all insurers are willing to participate in it. In terms of insurance may be limited to contracts with insurers that do not meet to the requirements.

Voluntary insurance is always limited in terms of insurance. There is a beginning and end of the contract. Continuity of voluntary insurance can only be achieved by repeated (sometimes automatic) renegotiation of the contract for another term.

Voluntary insurance is valid only upon payment of a one-time or periodic premiums. Failure leads to the termination of the contract.

Legal basis of insurance relations (Capital Protection Group)

All legal relations connected with the conduct of insurance can be divided into two groups: the relationship governing the proper insurance, that is, the process of formation and use of the insurance fund, and the legal relations arising on the organization of insurance business, that is, activities Insurers. Their relationship with banks, budget by governments.

Those and other relations are governed by laws and other legal acts. It is believed that the first group fall within the scope of legal civil rights and the second — State, Administrative, Finance, Criminal, Procedure and other sectors and subsectors right.

In Russia, as in some western countries (eg Germany) has developed a three-tier system of legal regulation of insurance business.

Level I – General Civil Law (Capital Protection Group)

By this stage of the legal regulation of insurance should be attributed primarily the Civil Code (CC) of Russia and other similar regulations, for example, the Code of Merchant Shipping.

Civil law and therefore civil law governing the commodity-money and other property and property relations that arise between the subjects of civil legal relations. As subjects are citizens of the act (individuals), Enterprises, organizations, institutions (entities) And the state power bodies. The objects of civil law relations are material and monetary values, as well as other tangible and intangible benefits. As objects of insurance relations and serve the material and monetary value (assets, expenses, income) and intangible benefits of personal rights – life, health, disability, there is a risk of loss of family income due to loss of health or death during the period of insurance. Subjects appear insurers, policyholders and third parties. All this testifies to the ownership of insurance relationships to the sphere of civil law, to the section the law of obligations.

In Part 1 of the Civil Code established concepts underlying insurance relationships, such as individual, entity, Commercial and noncommercial activities, defines the basic organizational and legal forms of entrepreneurial activity, provides a basis for liability law.

In Part 2 of the Civil Code contains a special chapter 48, “Insurance”, which defines the framework for relations on the insurance as a separate type of economic relations.

Level II – Special legislation on insurance business

These include Russia separate laws governing relations with regard to insurance. These should include, above all, the RF Law on Insurance in Russia “, a Federal Law” On medical insurance of citizens in Russia, “the laws” On mandatory insurance of civil liability of vehicle owners, “On mutual insurance” and Other federal laws.

RF Law on Insurance in Russia “aims to create equal conditions of insurance for all Insurers the insurance market, both public and private, to guarantee the protection of the interests Insurers, Identify common methodological provisions for the organization of insurance and the basic principles of state regulation of insurance activities. Until December 31, 1997 acted in a Federal Law “On Insurance”, which was adopted on 27 November 1992. He was later passed a federal law “On Making Amendments and Addenda to the Federal Law” On Insurance “, which was signed by the President on December 31, 1997. In accordance with recent substantial changes in insurance legislation, including changed and the name Law. Later in the Act have been made other significant changes.

Level III – Other regulations

By the way regulations are Presidential Decrees, Government resolutions, regulations, ministries and departments. The general requirements of legislation to regulate relations in the field of insurance are to that in legislation of the first and second stage are given the basic concepts related to insurance relationships, provides general requirements for contracts of compulsory and voluntary insurance. In other statutes contain specific requirements for the implementation of the insurance activity.

Capital Protection Group

Subject preservation of capital can be divided into two hotel’s category. The first category protects the initial capital, whereas the second is responsible for the protection of the revenue already in the process of its enlargement. If you have not done a job of protecting the initial capital, you can not introduce the possibility of protecting profits. Speaking of income, the first thought that comes to mind 90% of traders – protection of income in a single winning trade. They want to know at what point the record profits from the transaction, and when to hold a profitable position. This topic is certainly worthy of discussion and consideration, but it is not the subject of this article. When I speak about the protection of income in this article, I mean the profits from all transactions. For example, starting with the account, and reaching 000, 000, what steps should be taken to make sure that the account does not “fall through” back to, 000. This is exactly what I will discuss in this article.
Protection of seed capital.
This is something with which to begin …
What was thought to Markets? I spent quite a lot of research and discovered one of the most brilliant professional secrets. I do not have to worry about protecting the initial capital, because I’m going to make a fortune. The saddest thing is that only the beginning, they “merge” its own expense during the first 36 hours, each time repeating the same mistake. Neglecting the protection of seed capital.
Once, I was approached by a trader, who had (I emphasize the word “had”) 0,000 of capital to start trading. He was going to sell Daily S & P. He asked me, with a number of contracts to start trading. I asked him, “Were you ever Daily trading on the S & P?”, “No”. “Has you the necessary research?”, “I think so. My answer was the same as it was and will always, regardless of the answers to these two questions, one. Start with the one contract. The only reason that I asked him about was that I knew that he would oppose that, to trading only one contract with an initial score of 0,000. So, I just tried to convince him to start with one contract. He began to trade with the eight. A month later, he called me. His bill slipped to 0,000 from 0,000. He decided that if he loses money, it is necessary to increase the number of traded contracts! This may be a topic for another article. Nevertheless, he called me and told me what had happened and asked what to do now? I said – trading one contract. It was an expensive lesson.
The first rule of protection of seed capital – always start trading with one contract, minimum lot of shares, or one option. No matter what the initial capital you have, how much research you conducted, what results were obtained on historical data. Start with the minimum. Starting with the minimum you can give a method to prove its efficiency, before the risks increase. (See “Power of proper money management”).
The second rule of protection of seed capital – not “peretorgovyvat” one contract too many markets. If at some point you are close to the probability of margin-Cola, then you are “overloading” your account. Sometimes it can be waived, depending on the account that you have, or the goals it has set for itself. For example, I have a funny dream – beat the record trade Larry Williams. Will I be it ever do, God only knows. But every time I try and put the entire competition account of, 000 at the starting line. The reason is a consequence of the greatness of purpose, which stands in front of me. Others can only work with a score of, 000. Virtually impossible to completely avoid stress and still be able to adequately increase the account. However, if you have the opportunity to have some margin between the initial score and the minimum margin requirement after deducting the three maximum drodaunov received on historical data – is a good start.
On the other hand, little account is the fine line between “peretorgovley” accounts and building a reasonable position. If in doubt, take the conservative side. Better be careful what crazy to have a chance to stay here until next year.

PROTECTION OF PROFITS

Since then the fun begins. If you are properly protected starting capital, you have a very good chance to stay in the game long enough to finally derive some income from your trade. One of the most important trading decisions in your life – how big income satisfied, if it grows. In this section, I assume that you have read and understood how to increase your risk, in the article “The power of proper money management.” If the increase in risk is correct, there is a chance that the amount of income that is received in a favorable trading period, will surprise you. However, you must protect this income, because there is always a chance drodauna, which may push you into a corner. Most traders do not realize that regardless of the methods that they sell, the system will be in drodaune, on average, from 65% to 80% of the time. And if you do not have a proper plan, you can easily see how with profits grow sweeping eagle’s wings, and it evaporates away. And you do not even know what has caused you such a defeat. (See “Drodauny can always be more …”).

If the protection of profits is more important to you than continuing increase in accounts as rapidly as possible, then the most important step in the onset of drodauna will decrease your risk per trade at a faster rate than the rate with which went the growth of risk in a favorable period. There are two main aspects of money management. How to increase the risk in the next transaction, and how to reduce the risk in the next transaction. For example, if increasing the number of contracts traded in the method FixedRatio, you are using a delta equal to, 000, to protect income, you can reduce your risk is twice as fast. For example, using the delta in, 000, beginning with the account, 000, you trade six contracts, if the account has grown to, 000. If there is a relatively large drodaun – in, 000 per contract, then your score will drop to about, 000, trade two contracts. This means that you have been sufficiently great risk in continuing drodauna.

However, if you reduce the number of contracts is twice as fast, your account drops to, 000 when trading is only one contract. Thus, even after a relatively large drodauna, you protect on, 000 more profits than if the rate of risk reduction was the same as the rate of increase in risk. Continuing to trade this system or method, you can still undergo drodaunu, 000, before reaching the value of the initial capital, 000.

Using a more rapid decrease in the number of contracts than a raise, you can actually deploy a losing scenario in the lucrative, if the first was obtained income. To increase the account by the method FixedRatio from, 000 to, 000, as in the example above, the system or method should bring the total revenue on a contract in, 000. If this system will suffer drodaun in, 000 per contract, the result will be (-, 000). However, when applying to reduce the number of contracts traded in the two times faster than growth, the end result will remain positive, 000! Method to work, 000, and then lost, 000, but a good trader, however, remained in profits, 000, despite a losing scenario.

Obviously, an article can not fully consider all the possibilities of using the appropriate capital management to protect profits. Nevertheless, I will focus on some key points. First, if in the trading process, you lessen the number of contracts (or lots of shares or options), the question arises as to when to return to increase. Simple answer, to increase the number of contracts at the same levels at which there was a decrease. Then, when you reach the goals that led to a decrease, you continue to increase the original script by using delta in, 000.

Critical points.

Almost every time I start selling a new method, or a new account, my first goal – to achieve what I call a “critical point”. The critical point is a very important point, which should seek any trader. If you apply the principles outlined and will reach this point, you will feel the joy and freedom in their trade.

The critical point is simply the level of your account, at which, in the application of appropriate management of the capital, you will never get a negative result on the account, regardless of whatever happens. It is not as difficult as it may seem.

For example, I cite his plan used for the participation of traders in the championship this year. I used the Daily trading on its system PowerTrade S & P. My account has reached a size of 7,000, starting with the whole, 000 in the beginning of the year. I did not use exactly the method of reduction described above, although very close to it. Nevertheless, in accordance with my plan, I had to go to the trade only one contract, if my account has fallen below 000. Then, if drodaun continue, with a decrease in accounts below 000, I should go to trade contract E-Mini S & P. If this happens, PowerTrade S & P will continue to trade with another additional drodaunom 5,000. That’s true, I’m not mistaken – additional drodaun to 5,000, based on trading one (complete) contract before my account reaches a negative zone.

Thus, after the receipt of income in total, 000 based on trading one contract, the method could enter into a common drodaun 0,000, before I lose this, thirty profit. Thus, based on trading one contract, this method may lose up to 0,000, while I still did not lose a penny.

Relax and perceive the power of the information contained in this article. This should forever change your view on trading methods. And if you gain invaluable experience to reach a critical point in their trade, I hope I can count on you for at least a steak dinner:)

High Yield Investment Internet Projects

Hello All those interested in earning in the internet sooner or later face a high yield investment funds. On the Internet these funds are the most profitable projects to earn money and increase your money. Such companies allow ordinary customers along with professional investors to profit from the use of funds, many times greater than the yield on bank deposits and many other financial instruments. Most of this invest-funds, which are engaged in trading on the currency market FOREX, reselling shares of different companies involved in various high-value projects online.

On our site projects, which provide an opportunity to increase its cash capital in a short time several times. Using the services of specialized Internet services, the investor invests a certain (usually the minimum bet of $ 1-50) the amount of money, then for some predetermined period of receiving cash payments from their investments. There are different options for payment of interest: daily, weekly or monthly. By making contributions to such funds, there is a real opportunity to get 25 - 35% per month, with the deposited amount. (Example: if you attach the $ 100 your profit is $ 25-35 per month by investing your $ 1000 profit of $ 250-350 per month). It does not matter where you live, that know how. Everything you need: to open an account eletronnyh rates (http://libertyreserve.com, http://perfectmoney.com/, http://webmoney.ru/), 20 - 30 minutes of Internet time and money to invest. But it is borne in mind that investment projects, also pose certain risks. For this reason you should pay careful attention to the choice of investment sites. Sort out and understand where fraudsters, and where a company perspective, is quite difficult. Therefore, should resort to the projects that monitor the situation on the market invest-projects and adhere to the rules of investing. Do not invest all its worth in one project. Properly Distribute your investment in a reliable projects, thereby minimizing the risk of loss of funds.

Social Capital

SOCIAL CAPITAL- A concept introduced P. Bourdieu Article "Forms of capital" (1983) to describe social networks that can serve resource benefits.

Sources of this idea can be found in Tocqueville, Simmel , Durkheim And Weber . For Bourdieu, social capital is a product of social production, material and thus the class practices, means of achieving group solidarity. In this understanding, KS is not only and not so much the cause of economic benefits as a manifestation of socio-economic conditions and circumstances, it is a group resource and can not be measured at the individual level. Linkages between economic development of society and the size of the aggregate social capital is mediated by political systems, religious traditions, the dominant values. The followers of Bourdieu's use mainly qualitative, ethnographic and historical methods for assessing social capital of communities.

A different concept was proposed by James Coleman in his article "Social capital in the production of human capital" (1988). Being engaged in the processes of diffusion and influence, sociological analysis of education and collective action, Coleman based his understanding of social capital in the empirical tradition in American sociology (anthropological studies of social networks --- L. Warner, rural and urban sociology), and human capital theory ( Human capital) G. Becker. Social capital is a public good, but there is a free and rational individual to achieve their own benefit. This process involves a social contract, a set of social norms, social exchanges and, consequently, some basic level of trust. Coleman's followers social capital as an attribute of the individual, giving him a real advantage in achieving life goals, career, protect property, access to information. Social capital is seen as a liberal society. The economic importance of social capital is that it reduces the costs of coordinating joint activities, replacing the contracts, the formal rules and bureaucratic procedures, trust relationships, lessons by professional standards, ethics, communication - those informal rules, which are transferred to culture and education. Like other forms of capital, social capital paid dividends only if it is active use: exchange, interiorization and exteriorization. At the individual level, the benefits obtained social capital include the level of health, education and training of children, the possibility of finding employment, life satisfaction, release time (use of services), cognitive simplicity of the world (no need to solve all the problems), the broader social identification, at the organizational - Reduced staff turnover, staff continuity, informal development opportunities, increase the collective knowledge, the continuity of organizational behavior, at the societal level - facilitating social control and the transfer of social experience, solidarity, reduction of the bureaucratic machine.

Considerable attention of researchers in this subject has been drawn by R. Putnam (eg, "bowling alone: the collapse and revival of American community", 2000), which used three-factor model of social capital: norms of reciprocity, trust and social networks. The first two factors are essentially socio-psychological attributes of the individual. Therefore, Putnam measure social capital using individual indicators, such as intensity and strength of contacts, membership in public associations, electoral activity, satisfaction with relationship, adherence to reciprocity, a sense of security, trust in neighbors and social institutions. Group or territorial rates obtained through the aggregation of individual. In the analysis of economic development of several regions of the world Putnam showed that the change in the quality of social relations preceded economic development. This result contradicts the data by sociologists Bourdieu and met with skepticism. In particular, Putnam does not explain the lack of a tautology, underestimate the role of tradition and religious prescriptions, do not take into account the prevailing patterns of relationships, are essentially zapadnotsentristskimi and built on the ideas of the Protestant work ethic . In studies of the dynamics of social capital in the U.S. Putnam notes a significant decline in public activity in 1970-1980-e in the electoral and political behavior, participation in volunteer programs, non-governmental organizations, participation in voluntary associations, reading newspapers, visiting relatives and friends, a collective pastime. The analysis of virtually ignores the effect of generation (children of the Great Depression, the postwar demographic bulge and Children 1980), changing conditions and lifestyle (urbanization, geographical mobility), the development of electronic means of communication and new forms of leisure. The rapid activity of non-governmental organizations in the past decade may reflect the excessive politicization of private life. Do not have an explanation other empirical facts, for example., High rates of measured social capital in the black ghetto.

Despite the criticism, an individualistic approach to measuring social capital is dominant in the research program of the World Bank on sustainable development of countries and regions, and most of the economic and sociological models. Individual indicators of social capital are included in the questionnaires of the World poll of values. These are the questions: How do you know your neighbors by name? Whether the neighbors look out for your apartment during your holiday? How often encounter in the shops with your friends? How many of you know? Often I talk on the phone with relatives? Invite you to my colleagues back home? How many times have you turned for advice to other people over the past three months? Do you think your neighborhoods safer? Do you think that the police / militia in your city can be trusted? Do you know who is a member of a local representative body of your county? How much are you tolerant of people, behaviors and habits are very different from yours? The legitimacy of the averaging of such indicators is problematic because it loses the effect of any aggregation of sociality, connectivity.

One of the indicators of social capital is membership in groups, the presence of contacts. However, the quality and intensity of these contacts are determined by factors external to the theory of social capital so that the usefulness of weak ties Increases in inverse proportion to market development. The presence of structural holes In social ties significantly in an environment with high competition. Artificial maintenance of structural holes reduces the level of mutual trust and thereby reduces the relationship between social capital measured by the number of contacts in social networks, the number of groups and induced social capital is not trivial and is mediated by many variables. Thus, mapped L. Warner 22 000 groups in the town of "Yankee City" with a population of 17 000 is impossible to interpret without additional information.

Empirical studies in Eastern European countries often use archaic or ambiguous indicators of affiliation (membership in the Communist Party), adapted to the culture of modernism and the scale of the Protestant work ethic, ambiguous measure of social capital for specific sectors of social production. Not accounted for generations and the effect of economic conditions (transport communications, telephone, the availability of the private service sector).

Although social capital is created and maintained in interpersonal and intergroup relations, it should not be confused with cohesion and solidarity. The latter can be created as a positive attitude towards external social environment where members of other groups attributed positive qualities (large radius of trust, by F. Fukuyama), and negative when outside groups are perceived hostility (large radius of distrust). In the second case of public morality justify immoral behavior towards others for the sake of his (double morality), and the total social capital decreases. In particular, the actions of political organizations are often aimed at achieving the desired objectives (solidarity) due to the escalation of hostility towards members of other communities. Particular attention should be given serious social abnormalities - increased social inequality and practices of social exclusion for certain distributions of social capital.

In general, social capital is an attractive and creative as an explanatory concept, but the corresponding theory of heterogeneous and internally contradictory, its definition is twofold, prediction and explanation tautological, aggregate indices of social capital is not enough are valid, constructs poorly measurable, and recommendations for social leaders and politicians indistinct.

Mother capital

Since January 1, 2007 entered into force on the Federal Law "On additional measures of state support for families with children."
Mother's capital in 2009 amounted to: 299 731 rubles.

Consider whether the parents of these funds for family planning? After the adoption of this law is aimed at stimulating the birth rate and strengthen the prestige of the family. This is a State has one of the principles of population policy.

Actually, from the practical side, this document establishes the right to receive maternity capital for families, which, since 1 January 2007 came a second child. To confirm eligibility of the mother (family) capital issued a certificate of national standard.
In practice, the parents, raised many questions. Not finding the necessary information, many parents postpone the certificate, although in some areas, the maternity capital in 2009 are today.
No country in the world there is no project comparable in terms of Russia's program of "mother's capital" - Dmitry Medvedev
Indeed, one can imagine the amount of funds allocated on the basis that in 2007 the amount of maternity capital was 250 000 rubles., In 2008. - 270 000 rubles., Birth certificate and 2009 is already 300 000rub. while citizens received a certificate for maternity capital in 2007. able to dispose of them at a rate based indexing.
However, the state introduced a number of restrictions, for example, spending capital only by bank transfer. Determined the direction of funds, the most protected from abuse:
- Improving housing conditions;
- Education of the child;
- Formation of a funded part of labor pensions for women

Expenditure possible in full or in installments. Naturally, in some areas of the maternity capital is insufficient to fully satisfy the needs of the family, such as improved housing conditions, but in this case the state was considering investing in the maternity capital improvement of housing conditions, as seed money, realizing that housing prices quite high.
However, to spend money mother's parents may have the capital in 2009 in the framework of adopted amendments to existing legislation relating to the expenditure of these funds to pay off the mortgages.
However, having already birth certificate for maternity capital, parents can assess their capabilities, the need and priorities for the use of these funds.
At a time when more families apply for a certificate for maternity capital, and some are already over the use of the parent capital of the applicants received a negative decision to the Pension Fund, but are fully entitled to receive these funds. As a rule, failures in the provision of maternity capital, occur because of incorrect papers.
Other grounds for refusal of an application for issuance of a certificate may be are:
- No right to additional government support measures;
- Termination of rights to additional government support measures;
- Submission of false information, including information about the order of birth (adoption), and (or) on the nationality of the child, in connection with the birth (adoption) of which there is a right to additional government support measures;
- Termination of rights to additional state support measures in connection with the use of the mother (family) capital in full.
It's difficult to give any advice which, moreover, of a general nature. In each case, must consult with the lawyers, because Preparation of documentation for the disposal of funds to the parent capital requires careful collection and analysis of documents for compliance with current legislation of Russia in terms of capital expenditure of the mother.
Thus, when applying for the direction of the parent capital repayment of principal and interest payments on loans, including mortgages for the purchase or construction of housing, among other documents are required, for example, witnessed a grant established by law a written undertaking that dwelling, acquired with the use of the mother (family) capital, is made in the common property of parents, children (including first, second, third and subsequent children) and other co-residing with family members with the definition of the size of shares under the agreement.

Possibility of early "print" maternal capital introduced from 01 January 2009. You can make documents on maternity capital ahead of time. The reason for that served as the economic crisis. For families who are not in a better financial situation, take advantage of this opportunity to become a major help, and they are unlikely to have time to re-gathering and filing of documents for consideration. Therefore, we recommend to get a full professional consultation prior to the filing of documents for the certificate and maternal capital spending.

Trojan horses of our time.

The second half of 2009-year media actively advertise the success in overcoming the financial crisis. It would seem to be afraid of nothing else, all more or less returned to normal. But is it really?

Consider the factors that could cause significant turmoil in the global economy and, thus, lead to significant exchange rate fluctuations:

1. CDS.

In 1994, bankers JP Morgan invented unregulated tool that will reduce bank reserves in order to extract additional profit through the use of the liberated capital. This tool was named CDS - Credit Default Swap (credit default swaps). Its essence lies in credit insurance and risk of default. After 14 years of unregulated derivatives bubble CDS has led to a crisis of the banking sector, put on the brink of ruin of the largest American insurance company AIG.

Nobody really knows the exact amount of CDS, are now in circulation. But even approximate figures and then pour over ice: it is believed that at the end of the second quarter of 2008, the CDS market was 15.5 trillion in the U.S. and 58 trillion in the world. Monstrosity of the derivative tumors can be present only in comparison: gross domestic product of the United States in 2007 amounted to 13.8 trillion, and GDP of the world - 54.3 trillion. But 58 trillion dollars - is only the visible part of the dark and mysterious iceberg on behalf of the CDS!

Nationalization of AIG and the unprecedented steps the U.S. government kept from bankruptcy system-companies and banks. But the bubble derivatives is still here. The problem remains, and awaits its decision.

2. Emission.

In connection with the financial crisis leading world powers have begun to issue new money. The media are trying to hide this fact, calling the issue "quantitative easing". The fact that these efforts demonstrates the willingness of the authorities to make this implicit information to citizens. After the huge issue of money, unsecured demand and real goods, can lead to high inflation. No new money will be linked in the banking sector and will spill over into the consumer market, changes in rates of major currencies may remain in certain reasonable limits. However, the guarantees that will not happen the same as the collapse in late 2008, one can not give. Everyone understands that money is getting cheaper and are prepared, in which case, get rid of those papers, which will look particularly weak.

3. Quasi-money.

There is an erroneous view that to issue money are entitled to only Central Bank (CB). In fact, this view is fundamentally mistaken. With little creative accounting banks have the opportunity create virtual quasi-money of debts, which are further used in the economy as usual, the real money.

Because making money out of nothing, it lucrative, all having such an opportunity use it without a twinge of conscience. Over the past fifty years, banks have created astounding debt pyramid virtual quasi-money. As long as investors do not take away from the banks of the pyramid for a critical mass of real money, the pyramid will stay. If investors begin to withdraw deposits, banks will take action for the repatriation of assets. What usually leads to significant market fluctuations.

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Capital Protection Group

Application of the provisions of bilateral international agreements on protection and investment guarantees

AGREEMENTS AND GUARANTEES FOR THE PROTECTION OF INVESTMENTSNG DORONINADoronin Natalia G.Leading Researcher, Institute of Legislation and Comparative Jurisprudence under the Government of the RF (IZiSP), Doctor of Law. Specializes in the legal regulation of foreign investment in Russia and in foreign countries.Born May 26, 1944 in Moscow. She graduated from the MGIMO Soviet Foreign Ministry (1967). From 1976 to present works in IZiSP.Author of numerous publications, including co-author of "Legal regulation of foreign investment in Russia and abroad", 1993.What is the content of legal relations in connection with investmentsthe authorized capital of credit organizations?The issue arose in respect of the bank with 100% of the French capital, so consequently there was a question on the application of the Agreement between the Government of the USSR and the Government of the French Republic, the Reciprocal Promotion and Reciprocal Protection of Investments <*> concluded in Paris on July 4, 1989--------------------------------<*> Bulletin of the Supreme Soviet of the USSR. 1991. N 48. Art. 1357.In answering this question should be guided by the definition of foreign investment, which is contained in the agreements on mutual protection and guarantee investments.This is due to the following. The norms of international agreements in force in the regulation of foreign investment, apply to investor relations on the territory of Russia on an equal basis with domestic law, as under Part 4 of Art. 15 of the Constitution of Russia universally recognized norms and principles of international law and international treaties of Russia are part of its legal system. In accordance with the same article of the Constitution of the international treaty shall apply, unless it establishes the standards that differ from the provisions of national law.Priority international - the legal guarantees granted to foreign investment, in present conditions of legal regulation of foreign investment in Russia is of particular importance, because due to the action of international obligations of the Contracting States can ensure stability in the regime of foreign investors. With the adoption in 1999 of the Federal Law "On Foreign Investment in Russia," the scope of the guarantees contained in the previously existing law on foreign investment, has been narrowed. Thus, in accordance with the new law to government guarantees do not apply to investments in the banking sector. In this situation, the rules of international safeguards agreements and protection of investment gain priority over national law on investment. Exceptions are the rules of special legislation for the banking sector.In Russia - the French investment agreement, or "investment" are defined as property (movable and immovable), proprietary rights, and property rights, shares and other forms of enterprises and organizations established in the territory of a Contracting State, corresponding to the general concept "property values", which must be invested or invested in accordance with the law of the Contracting Parties.In addition, the concept of "investment" includes indirect investments undertaken in the territory of the Contracting Parties, ie investments by the investor through a third country. The definition of "investment" also indicates that the change in the legal form of investment property values does not affect their qualification as an "investment", if that change does not contradict the legislation of the Contracting Parties.Broad understanding of "investment", or investments can be attributed to foreign (French) investment property of a commercial organization with 100% of the French capital to the category of foreign investment, which is subject to the guarantees provided by international agreement on mutual promotion and mutual protection of investments.In qualifying property values invested in the creation of enterprises and organizations on the territory of Russia as a foreign investment should be guided by the provisions in Art. 2 of the Agreement, which stipulates that "each Contracting Party under its legislation and in accordance with the provisions of this Agreement permits and encourages investment, carried out on its territory." This article delineates the relations associated with the investment relationship, concerning the admission and promotion of investment, and the relations arising in the implementation of investment.Admission and encourage investment in essence constitute an endorsement of the state action of a foreign investor, and hence the State's consent to the provision of appropriate safeguards, as invested with the approval of the state's property value should be classified as "investment". However, the said article contains a reference to the legislation of a Contracting Party with respect to tolerance and investment promotion.In accordance with RF legislation (both existing and in force at the time of the conclusion of the Agreement) to the provisions on the admission of foreign investment equals the registration procedure of commercial organizations with foreign investments (in the former Act it was an enterprise with foreign investment). At the time of formation of a commercial organization with foreign investments are subject to verification of its registration of a foreign person engaged in investment, followed by nested property values get qualified "investments".For banks the admission of foreign investment is defined in Art. 17 and 18 of the Federal Law of February 3, 1996 N 17-FZ "On Amendments and Additions to the RSFSR Law" On Banks and Banking Activity in the RSFSR "(hereinafter - the Banking Act). According to these articles of the state registration of credit institutions with foreign investments and branches of foreign banks shall take into account the additional requirements associated with the issuance of Bank of Russia the organization has licenses to engage in banking activities.Thus, following the provisions of Russia's legislation on customs establishment of credit institutions with foreign investment and expertise invested by a foreign bank property values as "investment", corresponding to the understanding of "the admission of investment" under Art. 2 of the Agreement, occurs when the registration of organizations such as credit organizations with foreign investments. On investments in such organizations, respectively, subject to the safeguards provided for in international agreements on mutual promotion and mutual protection of investments.In qualifying income derived from investments, as investments should be guided by the definition of "income" contained in paragraph 3 of Art. 1 of the Agreement, ie as "any amounts received as a result of investments, and, in particular, but not limited to: income, dividends, interest, license fees and compensation payments for technical assistance and maintenance.The Agreement does not indicate who receives these sums. In this regard, one should proceed from the fact that when it comes to investment in the form of commercial organization set up by Russia's law, and it is by registration of such an organization as a commercial organization with foreign investments was qualified as an investment, within the scope of the Agreement, proceeds of such an organization, should be treated as income, which are covered by warranty, as defined in the Agreement.With regard to the qualification of undistributed income as "re-investment", here we need to consider the following. Unallocated income received commercial organization with foreign investments in content are re-investment, or reinvestment. Although the Agreement did not contain a definition of reinvestment, but it provides that "income from investments in case of re-investment - income from re-investment enjoy the same protection as the investment" (paragraph 2 of Art. 4). This situation suggests undistributed earnings as of reinvestment, which enjoys the same international - legal protection as an investment (investment).The provisions of the Agreement suggest that there is no need for any special qualifications of undistributed income as capital, which is required in the implementation of the initial investment under the terms of his art. 2 (admission and promotion of investments in accordance with the law of the Contracting Parties). It is enough that the initial investment was appropriate qualifications for registration established by the organization as a credit organizations with foreign investment under the Agreement and internationally - the legal guarantees. At the same time, given the effect of additional requirements for the establishment and activities of credit organizations with foreign investments established by Art. 18 of the Banking Act, we can assume that the re-investment (reinvestment) in the banking sector in some cases requires special recognition as an investment.The establishment of additional criteria for registration of credit organizations with foreign investments due to the fact that investment in the field of banking activities requires compliance with the quota of foreign capital, which is set by statute and represents the ratio of total capital owned by non-residents in the charter capital of credit organizations with foreign investments and capital of foreign bank branches to the aggregate authorized capital of credit organizations registered on the territory of Russia. Moreover, by Abs. 3 tbsp. 18 of the Act increased the authorized capital of credit organizations registered at the expense of non-residents is based on the prior authorization of the Bank of Russia, received in the manner provided for in the Regulation on registration of credit institutions with foreign investment and the regulatory order to increase the registered share capital of credit organizations at the expense of non-residents, approved by order of the Central Bank of Russia on April 23, 1997 N 02-195.This provision does not apply if the re-investment was not associated with changes made in the charter capital.Can spread internationally --legal safeguards for property locatedowned commercial organizationwith foreign investment?The agreement extends a guarantee against expropriation and nationalization measures in cases of adoption and other measures that are intended to "deprive investors of the other Contracting Party of their investments" (Article 4 paragraph 3). Specified warranty covers a wide range of measures taken by the State, including measures directly related to foreign investment.The overall objective of safeguards is to provide a broad understanding of the categories of "nationalization" and "expropriation" in order to prevent the adoption of regulatory policies, which entail the same effect as the act of nationalization. International - Legal guarantees against expropriation and nationalization applies in cases where there is simply the seizure of all or any part of the investment of the foreign investor.Contents guarantee is that the investor - the owner of the investment compensated. In accordance with the provisions of paragraph 3 of Art. 4 of the Agreement in the event of expropriation and nationalization measures, these measures should be grounds for immediate payment of appropriate compensation. The agreement defines the amount of compensation payable. The amount of compensation should be equal to the real cost of capital on the day preceding the date of the enactment or promulgation of these measures.The amount of compensation paid to a foreign investor is defined in accordance with those agreed between the investor and the state, adopted similar measures agreement. If such agreement can not be reached, then another international - legal guarantee - in terms of the settlement of disputes provided for in Art. 7 of the Agreement.It should be noted that in terms of the settlement of disputes, including disputes relating to compensation to the foreign investor, there is a multilateral Convention on the Settlement of Investment Disputes between State and other States, signed at Washington on March 18, 1965 at Based on the Additional Protocol to that Convention, signed in 1979, the States - parties to the Convention allowed to seek additional means of resolving investment disputes. Among the additional funds for investment dispute resolution provides for the conciliation and arbitration procedures that apply in cases where one party to the dispute, not a state - a party to this Convention or is a person of that State. In addition, the conciliation or arbitration procedure may be used for such parties to the dispute, even if the dispute is not directly linked to investment, but beyond the scope of normal commercial transaction.The provisions of Art. 7 of the Agreement, stressing the peaceful way to resolve disputes and provide for recourse to arbitration, acting on the basis of the UNCITRAL Arbitration Rules do not prevent the investor's funds to settle the dispute referred to in the above-mentioned multilateral Convention. This conclusion is confirmed by a new model agreement approved by RF Government Decree of June 9, 2001 N 456 "On the conclusion of agreements between the Government of Russia and foreign governments on the promotion and reciprocal protection of investments." According to Clause 2, Article. 7 of the Model Agreement if the dispute can not be resolved through negotiations within six months from the date of the request of either party to the dispute to resolve it through negotiations, it is the choice of the investor may be referred to the competent court or tribunal of a contracting party or the arbitral tribunal ad hoc, or in the International Center for Settlement of Investment Disputes, established in accordance with the Convention on the Settlement of Investment Disputes between States and Nationals of Other States.Thus, the provisions of the Agreement on the definition of investment income from investments and provided investment protection and re-investment required to qualify the property created by a person of a contracting party commercial entity as an investment that is in the scope of the guarantees provided in the Agreement, if such an organization was registered as a commercial (credit) organization with foreign investments.Qualifying property organization registered as a business (credit) organization with foreign investment as "investment" can be extended to these investment guarantees provided in the Agreement on Reciprocal Promotion and Reciprocal Protection of Investments concluded between the Government of the USSR and the Government of the French Republic.LINKS TO LEGAL ACTS
"Constitution of Russia"(adopted by popular vote 12.12.1993)Federal Law of 02.12.1990 N 395-1"On Banks and Banking Activity"LAW OF THE RSFSR of 04.07.1991 N 1545-1"On Foreign Investments in the RSFSR"Federal Law of 03.02.1996 N 17-FZ"On Making Amendments and Addenda to the RSFSR Law" On Banks andBanking activities in the RSFSR "(adopted by State Duma of Russia 07.07.1995)Federal law from 09.07.1999 N 160-FZ"On foreign investments in Russia,"(adopted by State Duma of Russia 25.06.1999)RF Government Regulation dated 09.06.2001 N 456"Of an agreement between the RFAnd foreign governments on encouragement and mutualProtection of investments "ORDER CBR from 23.04.1997 N 02-195On EFFECT TO THE PROVISIONS OF THE FEATURES OF REGISTRATIONCREDIT ORGANIZATIONS WITH FOREIGN INVESTMENT AND THE ORDERPrior authorization BANK OF RUSSIA FOR THE INCREASEREGISTERED SHARE CAPITAL OF THE CREDIT FORACCOUNT OF NON-RESIDENTS "(together with the provisions of 23.04.1997 N 437)"CONVENTION ON THE SETTLEMENT OF INVESTMENT DISPUTES BETWEENStates and Nationals of OtherSTATE(ICSID / ICSID)(Signed in Washington 18.03.1965)"AGREEMENT BETWEEN THE GOVERNMENT OF THE USSR AND THE GOVERNMENT OF THE FRENCHRepublic on mutual promotion and mutual protectionINVESTMENT "(Signed in Paris, 04.07.1989)Law and economics, N 1, 2002