Article 17: Non-Application of Part III in Certain Circumstances

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.

Ukraine:  Letter of 18 August 2022 informing about Ukraine’s exercise of its right to deny advantages under Article 17(2). 

Alapli Elektrik B.V. v. Republic of Turkey, ICSID Case No. ARB/08/13

Excerpts of Award, 16 July 2012, paragraph 361

Limited Liability Company Amto v. Ukraine, SCC Case No. 080/2005

Award, 26 March 2008, paragraphs 60; 67-70

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, paragraph 745

Antin Infrastructure Services Luxembourg S.à.r.l. and Antin Energia Termosolar B.V. v. Kingdom of Spain (ICSID Case No. ARB/13/31)

Award, 15 June 2018, paragraphs 272-273

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

Interim Award on Jurisdiction and Admissibility, 30 November 2009, paragraphs 436-440; 455-460; 543-544; 550-554; 562-566

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

Final Award, 17 July 2016, paragraphs 711-715

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

Decision on Jurisdiction, 25 July 2012, paragraphs 411; 418-429; 431

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

Award, 2 September 2011, paragraph 126; 550-556

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 225-227

Masdar Solar & Wind Cooperatief U.A. v. Kingdom of Spain, ICSID Case No. ARB/14/1

Award, 16 May 2018, paragraphs 234-239; 253-254

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

Award, 29 March 2005, page 63

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

Decision on Jurisdiction, 8 February 2005, paragraphs 80; 94-95; 147-148; 155-162; 170; 143

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

Interim Award on Jurisdiction and Admissibility, 30 November 2009, paragraphs 436-440; 455-460; 543-544; 550-554; 562-566

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

Interim Award on Jurisdiction and Admissibility, 30 November 2009, paragraphs 436-440; 455-460; 543-544; 550-554; 562-566