The Council of Ministers has approved a regulation establishing legal compensation for strategic investors if federal actions deprive them of assets, rights or expected returns. The measure converts prior political assurances into enforceable instruments backed by the federal budget. It seeks to draw in external capital by boosting investor confidence.
The federal government approved the regulation on May 23, 2026. It creates a formal route for compensation funded directly from the federal budget when government actions harm qualifying investments.
Wasihun Abate, a tax adviser at the Ministry of Finance, stated that the regulation is designed to attract strategic investments and instil confidence among external capital providers.
The directive applies to a select group of investments and turns earlier informal guarantees into binding legal commitments.
