Danelyan, A.A. Nationalisation of foreign investments: a new look through the lessons of the past

Abstract: The author shows that from the doctrinal standpoint the legal regulation of foreign investments should satisfy the requirement of balance of public and private interests. This requirement shows the limits to interference into the private relations due to the connections between the state and civil society. International law does not deny this legal position. The state may limit proprietary rights, including the rights of foreigners for the public purposes, which is one of the generally recognized conditions for nationalization. At the same time the public interests should not oppress the interests of private parties, and private party should not be overly burdened due to the limitations of proprietary rights. International law does not prohibit a state, which accepts investment to forcefully seize these investments on the condition that the seizure is not discriminatory and investor gets fast, efficient and adequate compensation. The article includes analysis of the criteria allowing to reveal unlawful seizure of property. The author provides examples of situations, when according to the decision of an arbitration court measures of state regulations are included into the category of indirect nationalization.

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