Article 13: Expropriation

(1) Investments of Investors of a Contracting Party in the Area of any other Contracting Party shall not be nationalised, expropriated or subjected to a measure or measures having equivalent to nationalisation or expropriation (hereinafter referred to as “Expropriation”) except where such Expropriation is:

  • (a)  for a purpose which is in the public interest;
  • (b)  not discriminatory;
  • (c)  carried out under due process of law; and
  • (d)  accompanied by the payment of prompt, adequate and effective compensation.

Such compensation shall amount to the fair market value of the Investment expropriated at the time immediately before the Expropriation or impending Expropriation became known in such a way as to affect the value of the Investment (hereinafter referred to as the “Valuation Date”).

Such fair market value shall at the request of the Investor be expressed in a Freely Convertible Currency on the basis of the market rate of exchange existing for that currency on the Valuation Date. Compensation shall also include interest at a commercial rate established on a market basis from the date of Expropriation until the date of payment.

(2)  The Investor affected shall have a right to prompt review, under the law of the Contracting Party making the Expropriation, by a judicial or other competent and independent authority of that Contracting Party, of its case, of the valuation of its Investment, and of the payment of compensation, in accordance with the principles set out in paragraph (1).

(3)  For the avoidance of doubt, Expropriation shall include situations where a Contracting Party expropriates the assets of a company or enterprise in its Area in which an Investor of any other Contracting Party has an Investment, including through the ownership of shares.

AES Corporation and Tau Power B.V. v. Republic of Kazakhstan, ICSID Case No. ARB/10/16

Award, 1 November 2013, paragraphs 279, 289, 317, 324; 329-330; 398-409; 418; 441

AES Summit Generation Limited and AES-Tisza Erömü Kft v. The Republic of Hungary, ICSID Case No. ARB/07/22

Award, 23 September 2010, paragraphs 14.3.2-14.3.4; 

Mohammad Ammar Al-Bahloul v. Republic of Tajikistan, SCC Case No. V064/2008 

Partial Award on Jurisdiction and Liability, 2 September 2009, paragraphs 281, 282, 284, 285

Anatolie Stati, Gabriel Stati, Ascom Group S.A. and Terre Raf Trans Traiding Ltd v. Republic of Kazakhstan, SCC Case No. V116/2010

Award, 19 December 2013, paragraphs 1205-1207

Blusun S.A., Jean-Pierre Lecorcier and Michael Stein v. Italian Republic, ICSID Case No. ARB/14/3

Final Award, 27 December 2016, paragraphs 398-399, 401; 403; 404; 407-409

Charanne and Construction Investments v. Spain, SCC Case No. V 062/2012

Award, 21 January 2016, paragraphs 458-467

Eiser Infrastructure Limited and Energia Solar Luxembourg S.à.R.L. v. Kingdom of Spain, ICSID Case No. ARB/13/36 

Award, 4 May 2017, paragraphs 353-354; 760-763

Electrabel S.A. v. Republic of Hungary, ICSID Case No. ARB/07/19

Decision on Jurisdiction, Applicable law and Admissibility, 30 November 2012, paragraphs 6.52-6.64

Hulley Enterprises Limited (Cyprus) v. Russian Federation, PCA Case No. AA 226

Final Award, 18 July 2014, paragraph 1580-1592

Isolux Netherlands, BV v. Kingdom of Spain, SCC Case V2013/153

Final Award, 17 July 2016, paragraphs 826-854

Ioannis Kardassopoulos v. The Republic of Georgia, ICSID Case No. ARB/05/18

Decision on Jurisdiction, 6 July 2007, paragraphs 387-397; 407

Khan Resources Inc., Khan Resources B.V. and CAUC Holding Company Ltd. v. Government of Mongolia, UNCITRAL

Decision on Jurisdiction, 25 July 2012, paragraphs 296; 366

Libananco Holdings Co. Limited v. Republic of Turkey, ICSID Case No. ARB/06/8

Award, 2 September 2011, paragraph 570

Liman Caspian Oil BV and NCL Dutch Investment BV v. Republic of Kazakhstan, ICSID Case No. ARB/07/14 

Excerpts of Award, 22 June 2010, Paragraphs 430-438

Mamidoil Jetoil Greek Petroleum Products Societe S.A. v. Republic of Albania, ICSID Case No. ARB/11/24

Award, 30 March 2015, paragraphs 574-575; 578-580

Nykomb Synergetics Technology Holding AB v. The Republic of Latvia, SCC

Award, 16 December 2003, section 4.3.1

Petrobart Limited v. The Kyrgyz Republic, SCC Case No. 126/2003

Award, 29 March 2005, page 77

Plama Consortium Limited v. Republic of Bulgaria, ICSID Case No. ARB/03/24

Decision on Jurisdiction, 8 February 2005, paragraphs 190-193; 227; 266-267

Veteran Petroleum Limited (Cyprus) v. Russian Federation, PCA Case No. AA 228 

Final Award, 18 July 2014, paragraph 1580-1592

Yukos Universal Limited (Isle of Man) v. Russian Federation, PCA Case No. AA 227

Final Award, 18 July 2014, paragraph 1580-1592