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Specialist in the field of commercial law and process. Real estate, construction support; land law and protection of property ownership.
International investment arbitration
What is international investment arbitration?
International investment arbitration is a dispute resolution mechanism between foreign investors and host states. It allows investors to bring claims directly against states in international arbitration courts if they believe that a state has breached its obligations to protect their investments. The key aspects of international investment arbitration are as follows:
- firstly, the parties are a foreign investor (an individual or legal entity) and the recipient state (the country in which the investment was made);
- secondly, the dispute is considered in accordance with the arbitration rules of the chosen institution;
- thirdly, the arbitration award rendered in the case is binding on the parties. In practice, they are implemented by taking into account the norms of the Civil Procedure Code of Ukraine, as well as the New York Convention.
The procedure also has a number of other features. In particular, obtaining a positive arbitration award is not the final result of such a procedure, since the investor must also apply to national courts and undergo mandatory legal proceedings to confirm its mandatory execution. Moreover, since the defendant in the arbitration proceedings is the state itself (representatives of the authorities), this creates a risk of a lack of funds in the state budget to execute the award. You can learn more about the features of international investment arbitration by consulting a specialized lawyer at “Prikhodko & Partners”.
In what cases should an international investment arbitration procedure be initiated?
It is necessary to initiate an international investment arbitration procedure in cases where there is a violation by a state of its obligations under international investment agreements or national legislation in the field of international investment regulation. This is advisable in the following cases:
- expropriation or nationalization. If the state has removed investments without adequate compensation or has introduced measures that have effectively led to expropriation, even if the formal ownership has not been changed;
- violation of the fair treatment regime. When the state discriminates against a foreign investor compared to other foreign investors, fails to provide adequate protection for his investments;
- breach of contractual obligations. If the state violates obligations assumed towards the investor under a relevant official agreement, fails to fulfill the terms of investment contracts.
It is worth emphasizing that before initiating such a procedure, it is necessary to check the existence of an arbitration agreement between the investor and the state. For its legal analysis or project development, it is recommended to contact the experienced lawyers of “Prikhodko & Partners”.
Consultation with a specialized lawyer
Peculiarities of the enforcement of investment arbitration awards
International investment arbitration awards have a number of features that distinguish them from others. Below are some of the key aspects:
- First, the legal basis. Such awards are often based on bilateral investment treaties or multilateral treaties;
- Second, enforcement involves the recovery of funds from the state (state budget), which may in fact be subject to certain restrictions;
- Third, jurisdiction can be complex, as it depends on the interpretation of investment treaties. Arbitrators must determine whether they have jurisdiction to hear the dispute and whether the investment is protected under the relevant treaty.
- Finally, investment arbitration awards can have a significant impact on the public interest, as they may concern state policies and regulations.
According to the provisions of the Washington Convention, the enforcement of a decision is carried out in accordance with the national legislation on the enforcement of court decisions in force in the country where the decision is to be enforced. In Ukraine, there is no such special procedure, and therefore in practice they are enforced in the same way as decisions of foreign courts and international commercial arbitrations.

Support of the lawyer “Prikhodko & Partners” in the process of international investment arbitration
Law Firm “Prikhodko & Partners” provides comprehensive support in various legal processes, ensuring the protection of investors’ rights and interests. Our main services include: analysis and assessment of disputes, investment agreements, legislation, assessment of prospects and risks of resolving a dispute through international investment arbitration; preparation for arbitration proceedings, primarily collection and analysis of procedural documents, evidence base, representation of the client’s interests at hearings and in court; support for the implementation of decisions in Ukraine and abroad, taking measures for the further collection of awarded compensation amounts, appealing international investment arbitration decisions (if necessary), etc.
Our law firm actively uses an individual approach to each client, adhering to professional ethics. Clients, turning to our specialists, receive reliability and confidence in completing all mandatory procedures.
Thus, international investment arbitration is an important mechanism for protecting the rights of foreign investors, providing them with the opportunity to resolve disputes with recipient states at the international level. It is necessary to initiate the procedure of international investment arbitration in cases where there is a violation by the state of obligations stipulated by international investment agreements or national legislation in the field of regulation of international investments. To receive high-quality legal support of the process, we recommend contacting experienced specialists of “Prikhodko & Partners”.
International investment arbitration is a complex investment protection tool that requires professional legal support. To find out the cost of our lawyer’s services, fill out the form below.
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Is a subscriber form of service possible to quickly resolve issues as they arise?
Yes, of course, we take companies for permanent support.
The subscription form of service allows you to receive a full range of legal services on an ongoing basis for a fixed monthly fee.
Our lawyers will accompany all economic legal relations of your company: from drawing up contracts and solving corporate issues to representing interests during inspections by regulatory bodies and in court disputes.
We have very flexible pricing, so contact us and we will discuss your specific case.
Do you work only in Kyiv?
Fortunately, modern technologies allow us to effectively solve almost any legal issue online regardless of your location. In cases where personal presence is necessary, our lawyers are ready to travel to any point in Ukraine. Moreover, thanks to our network of reliable partners abroad, we can provide legal support even in international cases. Our goal is to provide you with quality legal assistance wherever you are.
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