Protection of Business Assets in Russia and Ukraine under International Investment Law
Russia’s military action in Ukraine together with its announcement of retaliatory measures in response to international sanctions are likely to have significant implications for foreign investors with investments in Russia and/or Ukraine. Following the critical response of the international community to Russia’s invasion and the widespread imposition of sanctions, Russia has already drawn up a list of unfriendly countries which could be targeted. As more multinationals suspend their operations in Russia, Russia has also announced various measures intended to stem the outflow of foreign capital including the possibility that the assets of any such foreign investors seeking to exit operations in Russia could be nationalised without compensation.
Russia still remains bound by the international treaties which it has signed and ratified. This Client Alert considers the protections and remedies which might be available to foreign investors affected by Russian measures under International Investment Law.