International Investment Arbitration as a Tool to Protect Investors in the Face of the War in Ukraine

Abstract

This article focuses on the prospect of using bilateral investment treaties and the international arbitration mechanisms contained within them to protect investments made in the occupied territories of Ukraine. The author argues that in situations where the investor comes from a country that has entered into investment treaties with both Ukraine and Russia, Russia is responsible for adhering to the standards contained in the investment treaties to which it is a party, on the occupied territories.To prove the above assumption, the scope and method of investor protection based on bilateral investment treaties have first been analysed. Then, the issue of the applicability of investment treaties during armed conflict has been discussed. Furthermore, the issue of the territorial scope of application of investment treaties has been examined.The conducted analysis confirms that Russia’s concrete actions, especially the effective control exercised by that country over the occupied areas of Ukraine, entitle investors to bring claims against Russia based on investment treaties.