Browsing by Subject "nationalisations"

The thesis introduces international investment law and its development – mainly focusing on bilateral investment treaties. International investment law faces its own challenges, and no global consensus has been reached on the treatment of foreign direct investments. That said, many states have chosen to agree on the treatment of investment through bilateral treaties designed to promote and protect foreign investments in the host state. Foreign investment involves different and possibly unknown risks compared to domestic investment. How these risks materialise and how these risks have been mitigated through bilateral investment treaties has been left to the development of international investment law. For the time being, the solution has mainly been investment treaties, of which bilateral investment protection treaties are discussed here. On 24 February 2022, Russia invaded Ukraine. This was, at the latest, when many of the “Russia risks” that an investor knew or should have known about materialized. Following this shocking attack on Ukraine, many states have publicly condemned Russia's actions. Several sanctions, such as but not limited to restrictions on transfers of funds and services to Russia, closing of air spaces, travel bans and asset freezes, have been imposed against Russia for military action(s) - over a period of several years. To show their support for Ukraine, many companies have decided to withdraw from the Russian market. As a countermeasure, Russia has presented draft regulation to nationalise foreign investment. The draft legislation, if passed, would “allow” the Russian government to expropriate investments by 'unfriendly' foreign states that seek to exit the Russian market. That said, the thesis focuses on what is meant by expropriation in international investment law, and when expropriation is considered legal. The aim of the thesis is to examine how the bilateral investment treaty by and between Finland and the Socialist Soviet Union (to which the Russian Federation later became a party) can provide support to investors from Finland that have invested in Russia. The thesis discusses the definitions stipulated in the bilateral investment treaty, as well as the provisions concerning explicit safeguards, general principles and the international dispute settlement mechanism. Discussion related to being a Finnish company that has invested in Russia - and is now considering leaving or has left the Russian market is also introduced.