Ilyas Kuderin

Host-state's Responsibility to Investors Under Sanctions Against It Ilyas Kuderin

Investors prefer working in a foreign country under protection of international agreements,such as Bilateral Investment Treaty(BIT). If host-state violates rights of investor, BIT guarantees protection. These documents normally have standard protective provisions. Additionally,they regulate pre- and post-establishment of investments. It is significant,when they also include arbitrational clause,which means consent of the state to refer disputes to international arbitration. The latter form of dispute settlement is more suitable and proper to investor rather than domestic courts of host-state The protection of foreign investment is already complex task for lawyers,especially in situation when sanctions are applied against the host-state. Often when the country is in such negative circumstances investor cannot continue doing business for reasons. In this case guarantees given under BIT are violated The focus of paper is consideration of host-state?s responsibility for violations of investor?s rights,which are possible consequences of applied international sanctions. Another question will be related BIT standards,if they guarantee protection and compensation for investors in such situations.