HOW INVESTOR’S LEGITIMATE EXPECTATION IS PROTECTED UNDER FAIR AND EQUITABLE TREATMENT. WHAT ARE THE LEGAL AND PRACTICAL OBSTACLES
Keywords:
foreign investments, fair and equal treatment, international treaties on the promotion and protection of investments.Abstract
By the example of the practice of international investment arbitration, the article reveals the content of the concept of "legitimate investor expectations". This term is not used in bilateral and multilateral international treaties on the protection and promotion of foreign investment. Nevertheless, as follows from the practice of international investment arbitrations, "legitimate investor expectations" are an integral part of the standard of fair and equal treatment of a foreign investor by the State receiving the investment. Only if the state has given specific assurances and guarantees to a foreign investor, this generates legitimate expectations for the investor. If the State has not fulfilled these assurances and guarantees, it has thereby failed to meet the legitimate expectations of the investor and, consequently, violated the obligation to treat a foreign investor fairly and equally. For this, the State may bear international legal responsibility to the investor if he files a lawsuit against the state in international investment arbitration.
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