In this presentation we add to our series, Sanctions 360, another specific video regarding the effect of sanctions on various dispute resolution venues.
Specifically we look into the recent steps of the EU to oppose the investor-state dispute settlement (“ISDS”) mechanism when it was ceased by Russian blocked investors to challenge the EU blocking sanctions imposed against their investments in the EU. These investors seek damages from the EU Member States which signed investment treaties with USSR/Russia arguing that the effect of the blocking sanctions is, in essence, the expropriation of their blocked assets.
These measures of the EU aimed at frustrating the ISDS in these circumstances are noteworthy, given that the EU has been historically a vocal supporter of ISDS as a means to protect foreign investments.
As the stakes in these arbitrations may exceed billions of euros, it is interesting to follow whether these claims will eventually succeed. Taking a step back and looking at a more general trend, it is interesting to follow whether this new trend in ISDS may reverse the overal approach of the EU to this dispute settlement mechanism.
Thank you for watching!