The international digest for October of the analytical portal Pravo.ru has published a commentary by Stanislav Dobshevich, Partner of KKMP, regarding the investment arbitration of Tatneft against Ukraine.
On October 13, Tatneft notified Ukraine about the beginning of arbitration proceedings under UNCITRAL rules, which will start in six months if the parties fail to reach an amicable agreement. The reason for the lawsuit is confiscation of the filling station network and other assets by the Ukrainian authorities. "Tatneft learned about the court decision that led to the confiscation from the mass media and could not challenge it.
As a legal basis, the company refers to Article 9 (1) of the 1998 Agreement between the Governments of Russia and Ukraine on the Encouragement and Mutual Protection of Investments. Despite the denunciation of this agreement by Ukraine in 2023, it contains a “sunset clause” - a provision on ten-year protection of investments after termination.
Experts differ in their assessment of the significance of this arbitration. Some believe that the application of the “sunset clause” will only demonstrate the interpretation of the agreement's provisions by a particular tribunal and will not become an incentive for other Russian investors. However, according to Stanislav Dobshevich, the decision may prove important for investors.
«The future decision of the arbitration tribunal on the claim of Tatneft may give an important signal for all Russian investors who have lost their assets. Depending on what the arbitration panel decides in this case, it will become clearer whether it makes sense for Russian investors to use investment arbitration as a way to protect their rights when their assets are blocked or confiscated by Ukraine or Western countries after 2022.»
The full digest is available here
