Author: Khamidov, Shokhrukh

Annotation: The possibility that property belonging to the investor on the basis of ownership or other proprietary right may be forcibly expropriated by the authorities of the receiving state is one of the main risks in the implementation of foreign investment. Expropriation can be "direct" when there is a physical seizure of the property in ownership or a direct deprivation of the owner of property rights. Also, indirect expropriation is possible when there is interference by the state in the process of the owner exercising his powers to own, use and dispose of property, but not related, however, to the physical withdrawal of the latter or the formal loss of the mentioned powers. In this paper, the principle and the nature of indirect expropriation will be discovered. Moreover, this article will overview this principle through the Bilateral Investment Treaties (hereinafter, BIT) and Multilateral Investment Treaties (hereinafter, MIT). Also, indirect expropriation will be examined and analyzed on the basis of international arbitration practice on investment disputes between the state and investor. Finally, the conclusion will be provided.

Keywords: direct, expropriation, proprietary right, examined and analyzed, implementation, international law, physical seizure, Human Rights

Pages in journal: 259 - 263