Relying on treaties to protect investments in Eastern Europe
Bilateral and Multilateral investment treaties are an important tool for both promoting and protecting foreign investments. These treaties provide a wide range of substantive provisions on which foreign investors may rely when facing abusive, expropriatory, or discriminatory measures, as well as unfair treatment, by the host State. Foreign investors may bring arbitration claims against a host State that breaches these treaty provisions, thus avoiding recourse to that State’s own courts. Eastern European countries have signed dozens of these bilateral treaties, as well as the Energy Charter Treaty, one of the few multilateral treaties providing protection for foreign investors. Claims brought by foreign investors against Eastern European States have increased in recent years.
However, the wording of each treaty is different, and even a slight variation in wording may lead to considerable changes in the degree of protection. Foreign investors should know their rights as well as potential pitfalls under investment treaties at the stage of their investment planning to benefit from the most protective available treaty. And when a dispute arises with the host State, it is important to know the rights conferred by these treaties to determine the likelihood of success on any compensation claim against the authorities.
This webinar explores the main provisions of investment treaties in Eastern Europe and how investors can rely on them to obtain – and maximize – protection when investing in this part of the world.