Investors are cautiously optimistic about Russia's current economic and political environment.
Second, Russia's new political leadership has indicated its recognition that the economic benefits of the post-crisis ruble devaluation will expire, and bold new steps are required to foster future economic growth in Russia. The Duma that was elected in December 1999 appears more cooperative and ready to pursue their unfinished structural reform agenda and strengthen existing investment legislation. While the current legal framework is generally adequate, there are numerous examples of both Russian and foreign investors' rights being abused, though many of these have been ultimately determined favorably to the investor, after time-consuming, expensive litigation and appeals. More specifically, corporate governance in Russia is one of the most serious and frustrating issues confronting Russian and foreign investors alike. It has clearly led to a loss of investor confidence, which in turn has reduced significantly the amount of investment in Russia's recovering economy.