Abstract

Among Russia's measures to retaliate Western economic sanctions, Russia's recent investment exit restrictions against investors of "unfriendly states" significantly undermines the chance of exiting Russia with proper recovery. The author argues that measures undertaken by Russia violate the obligation of the MFN treatment under relevant Bilateral Investment Treaties ("BIT"), while it is early to determine whether Russia's measure constitutes an unlawful indirect expropriation. On the other hand, Russia may not escape its liability invoking national security exception under the customary international law. In addition, the author considers that it is possible to bring Russia's measures before an investor-State dispute settlement system under relevant BITs, although there may be issues including recognition and enforcement of the arbitral award.

This paper will be part of the second TDM Special Issue on "Sanctions and International Arbitration: Impact on Substantive and Procedural Issues". More information here https://www.transnational-dispute-management.com/news.asp?key=1960