FULL PROTECTION AND SECURITY STANDARD AS A PREVENTIVE TOOL FOR THE PROTECTION OF A FOREIGN INVESTOR AGAINST ILLEGAL ACTIONS OF THE HOST STATE

Abstract

The article considers the issue of the application of the standard of full protection and security as a preventive tool for the protection of a foreign investor against illegal actions of the host state. The relationship between a foreign investor and the state-recipient of investments is not always a partnership and mutually beneficial tandem. Carrying out investment activities, moreover, in a foreign country, is a risky activity that requires the protection of the rights of a foreign investor. The standard discussed in this article has a preventive and compensatory nature, as evidenced by court and arbitration decisions. In particular, the main purpose of this standard has traditionally been to protect the investor from various types of physical violence, including the violation of investment property rights, but the concept of this standard has now evolved beyond the physical protection of the investment to include judicial and legal protection. The current state of international investment law jurisprudence regarding the full protection and security standard is not flawless, as is usually the case in jurisprudence regarding other standards. Nor is it irretrievably fragile. The standard of full protection and safety is harm; on the other hand, it was spread to legal detriment. The relationship between the standard of full protection and security based on the treaty and customary international law, which has already been repeatedly given attention by jurists, must be correlated as lex specialis, since its scope is not fully determined by customary international law as lex generalis. It may go beyond the physical and some legal protection already built into customary international law. However, compliance with the treaty-based standard of full protection and security is measured by due diligence, as is the case with the customary international law obligation to provide full protection and security to aliens.