The article is devoted to the new status of foreign investment in the European Union. It aims to clarify various aspects of the legal regime of foreign investment in the light of the newly adopted Regulation of the European Parliament and of the Council Establishing Transitional Arrangements for Bilateral Investment Agreements between Member States and Third Countries. By comparing the Intra-EU investment with the Extra-EU investment the article substantiates the ideas that both should enjoy same regime; that the procedure for settlement of investment disputes for both should be regulated quite carefully in order to avoid parallel proceedings as well as pleas before different bodies. By discussing the ECJ jurisdiction in the field and the possibility of international arbitrations to apply EU law as well as by proposing reasonable allocation of competences between the EU and its Member States and establishment of EU mechanism for securing the political risk, the article tries to find answers to questions raised by the new Regulation.