Despite a tightening of German foreign investment law in 2009 in reaction to the growing importance of state controlled entities and national security concerns, Germany has remained open for FDI. So far German authorities have handled the new law carefully. But, was the change necessary?

The ongoing political crisis between Russia and the West jeopardize the achievements in economic relations that have been made over the past two decades. Foreign direct investments in Russia which are essential to modernize its economy may be lost if the Russian government does not send clear...