Possibilities of State Reaction to Crises and the Responsibility towards Foreign Investors

Abstract

In order to secure long-term foreign investments, economic entities conclude investment agreements with host countries on the basis of interstate investment treaties (bilateral or multilateral). They include a number of legal instruments to ensure this protection. Disputes are settled under the ICSID Convention, and the interpretation of legal provisions by adjudicating tribunals is favorable for investors. This leads to a real and significant limitation of the state’s ability to react to crises, as it creates responsibility towards foreign entities. For this reason, some countries give up concluding investment treaties or withdraw from already concluded ones.