The Protection of Foreign Investors against Economic Sanctions under International Economic Law
Bakos, A. (2024). The Protection of Foreign Investors against Economic Sanctions under International Economic Law. (Unpublished Doctoral thesis, City, University of London)
Abstract
In 2016, Al Jazeera, a state-owned Qatari media network, initiated proceedings against Egypt before an investment arbitral tribunal after the respondent banned the claimant from operating on its territory because of alleged support for the Muslim Brotherhood. Four years later, Qatar Airways (another Qatari state-owned entity) brought claims against Bahrain, Egypt, Saudi Arabia, and the United Arab Emirates after the four Gulf states had denied it access to their airspace, following the diplomatic fallout between the claimant’s home state and the four respondents. More recently, Ukraine nationalised a Russian investor’s bank, as it sought to remove sanctioned entities from its financial market. This was done in reaction to the geopolitical conflict between the two states, which culminated with the Russian invasion of Ukraine at the beginning of 2022. What all these situations have in common, beyond the underlying political tensions, is that they represent sanctions episodes imposed on foreign investors, or their immediate consequences. Without exception, all of them destroyed the investor’s property or rendered it completely worthless, at least for the period in which the measures were imposed. Given the strong impact of such restrictive measures on foreign investment, this thesis explores the extent to which international economic law (IEL) (mostly international investment law (IIL) and, to a certain extent, international trade law) can protect foreign investors against sanctions. It also explores the conditions under which states can impose such measures without breaching obligations established by international investment treaties and by the World Trade Organisation’s (WTO) treaties. The inquiry, however, is complicated by the heavily politicised context in which sanctions are imposed on foreign investors. This is arguably unprecedented in investment arbitration – especially when the claimant is controlled by its home state. In addition, states often link the imposition of (economic) sanctions to their security interests. Based on the applicable investment treaty, this can have a major impact on the extent to which an arbitral tribunal can review such measures.
Publication Type: | Thesis (Doctoral) |
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Subjects: | J Political Science > JX International law J Political Science > JZ International relations K Law |
Departments: | The City Law School The City Law School > The City Law School Doctoral Theses Doctoral Theses |
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