Limitation of the Provisional Application of the Energy Charter Treaty in the Light of Yukos Arbitral Award against Russia

Document Type : academic

Authors

1 Faculty Member of Shahid Beheshti University Law School

2 MA in International Law, Faculty of Law, Shahid Beheshti University

Abstract

The long gap between signature and entry into force of International Treaties (“Treaties”) encouraged the drafters of some Treaties to implement the Provisional Application mechanism in order to give effect to Treaties’ provisions prior to completion of the internal ratification process and entry into force. The drafters of the Energy Charter Treaty (“ECT”) incorporated the controversial concept of Provisional Application under Article 45 of the ECT in order to accelerate the application of the ECT. According to this Article, States agree to give effect to ECT’s obligations upon signature and prior to the ratification of the ECT. Article 45 includes limitations and mechanisms for the exemption from the provisional application in order to prevent the conflicts between the provisional application and signatories’ legal systems and moreover to assure States’ independency in provisional application of the ECT. In this regard, a great deal of ambiguities relating to the interaction and the limitations of the provisional application and its effects have been emerged that have a prominent impact on investor’s rights and signatory’s obligations. Furthermore, this issue has led to disputes between investors and host States. The limitations of provisional application of the ECT have been analyzed by Investment Arbitral Tribunals, but they have played a peerless role in the matter between Yukos majority shareholders and Russia in a way that after annulment of the arbitral tribunal’s award by the Hague District Court, the enforcement of the largest arbitral award of the history is contingent upon the interpretation of Article 45 of the ECT by the Hague Court of Appeal. 

Keywords


  • منابع:

    الف) فارسی

    ـ کتاب

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    ـ مقاله

    • بهمئی، محمدعلی و نجمه تقوی؛ «حمایت از انتظارات مشروع سرمایه‌گذار و چالش‌های فراروی آن در حقوق بین‌الملل سرمایه‌گذاری»، فصلنامه تحقیقات حقوقی، شماره 74، 1395.

     

    ب) انگلیسی

    - Books

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    - Articles

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    - Awards

    • Ioannis Kardassopoulosv. Georgia (ICSID Case No. ARB/05/18)Decision on Jurisdiction of 6 July 2007.
    • Hulley Enterprises Limited v. the Russian Federation (UNCITRAL, PCA Case No. AA 226), Interim Award on Jurisdiction and Admissibility Rendered on 30 November 2009.
    • Hulley Enterprises Limited v. the Russian Federation (UNCITRAL, PCA Case No. AA 226), Final Award Rendered on 18 July 2014.
    • Veteran Petroleum Limited v. the Russian Federation (UNCITRAL, PCA Case No. AA 228) Interim Award on Jurisdiction and Admissibility Rendered on 30 November 2009.
    • Veteran Petroleum Limited v. the Russian Federation (UNCITRAL, PCA Case No. AA 228) Final Award Rendered on 18 July 2014.
    • Yukos Universal Limited v. the Russian Federation (UNCITRAL, PCA Case No. AA 227) Interim Award on Jurisdiction and Admissibility Rendered on 30 November 2009.
    • Yukos Universal Limited v. The Russian Federation (UNCITRAL, PCA Case No. AA 227) Final Award Rendered on 18 July 2014.
    • Petrobart Limited v. the Kyrgyz Republic (SCC Case No.126/2003) Award Rendered on 29 March 2005.
    • The Russian Federation v. Hulley Enterprises Limited, Veteran Petroleum Limited & Yukos Universal Limited (The Hague District Court Case No. C/09/481619 / HA ZA 15-112) Judgment of 20 April 2016.

     

    - Codes and Regulations

    • Russian Federation Law on Foreign Investments in The Russian Federation (4 July 1991)
    • Albania Law for Foreign Investments (2 November 1993)
    • Constitution of the Russian Federation (12 December 1993)
    • Russian Federation law on the International Treaties of the Russian Federation (16 June 1995)
    • Russian Federation Law on Foreign Investments in The Russian Federation (25 June 1999)

     

    - Websites