Each Contracting Party reserves the right to deny the advantages of this Part to:

(1) a legal entity if citizens or nationals of a third state own or control such entity and if that entity has no substantial business activities in the Area of the Contracting Party in which it is organised; or

(2) an Investment, if the denying Contracting Party establishes that such Investment is an Investment of an Investor of a third state with or as to which the denying Contracting Party:

• (a) does not maintain a diplomatic relationship; or
• (b) adopts or maintains measures that:
  • (i) prohibit transactions with Investors of that state; or
  • (ii) would be violated or circumvented if the benefits of this Part were accorded to Investors of that state or to their Investments.

Germany: Letter of 15 March 2023 informing about Germany's exercise of its right under Article 17 to deny advantages of Part III of the ECT to any legal entity owned or controlled by citizens or nationals of the Russian Federation and without any substantial business activities, as well as to Investments of Investors of the Russian Federation.

Ukraine: Letter of 18 August 2022 informing about Ukraine’s exercise of its right to deny advantages under Article 17(2) to deny advantages of Part III of the ECT to to Investments of Investors of the Russian Federation.