International Center for Dispute Resolution. International Center for Settlement of Investment Disputes

International University in Moscow

Faculty of Law

by discipline

"International Investment Law"

« International Center for Settlement of Investment Disputes »

Prepared by: Astrova Yana

Plan

Introduction

ICSID activities

Competence of ICSID. Concept of investment disputes

Organizational structure of ICSID

Dispute resolution procedure

Conclusion

Bibliography

Introduction

An increase in the economic activity of states gives rise to an increase in the number of investment disputes.

Modern civil legislation of any state contains the concept of civil rights of the parties. Based on this, partners entering into economic relations, including investment relations, must be sure that in the event of an investment dispute they will be able to find legal opportunities to protect their interests and that decisions made by the competent authorities (for example, economic courts different levels) will be executed.

In relation to our country, this provision is especially relevant, because many foreign companies operating in Russia today, in 1920-1940. lost their property in the USSR without compensation. In addition, early termination in the 1930s. a number of consensual agreements led to the initiation of arbitration and court cases, which ended in vain for foreign investors.

The mechanism of such legal protection should be one of the main elements of effective national regulatory and judicial authorities designed to ensure the implementation of the rights of foreign investors in the country.

A specific feature of the resolution of investment disputes is the heterogeneity of international economic relations. Economic disputes between individual states are resolved on the basis of international law, like other international disputes.

As is known, according to the principles of international law, every state and any subjects of international law are obliged to resolve their disputes by peaceful means so as not to jeopardize international peace, security and justice. The principle of peaceful resolution of international disputes is a peremptory principle of international law. It is enshrined in paragraph 3 of Article 2 of the UN Charter, in the Declaration of Principles of International Law relating to friendly relations and cooperation between countries, in the final act of the 1975 Conference on Security and Cooperation in Europe. and many other agreements.

In modern conditions, when there is a growing complexity and deepening of international economic cooperation, including in the field of investment relations, states are striving to develop the practice and method of peaceful means of resolving international disputes, and to improve the mechanism for their application.

“The problem of creating a reliable mechanism for resolving investment disputes is inextricably linked with the issues of establishing the principles and norms of international legal protection of capital in states receiving investments. When investing in developing countries and countries with “transition economies” with their inherent political and economic instability, a foreign investor risks that if the political situation changes, his capital may be nationalized or requisitioned without paying compensation in a timely manner and in full. In addition, there is a real danger that if strict currency restrictions are introduced by the recipient state, the investor will not be able to convert his profits from participation in the investment project into freely convertible currency and transfer it abroad. It is also possible that foreign investments may be lost as a result of hostilities or civil unrest. In other words, investment risk in a foreign country remains very high, which requires reliable arbitration and judicial protection.

It is no coincidence that one of the main objectives of the Federal Law of July 9, 1999 “On Foreign Investments in the Russian Federation” is to guarantee the proper resolution of a dispute arising in connection with the implementation of investments and business activities on the territory of the Russian Federation by a foreign investor. This kind of dispute, as Art. 10 of the Law, is permitted in accordance with international treaties of Russia and federal laws in court or arbitration court or in international arbitration.

Special mechanisms for the peaceful resolution of economic disputes arising in the course of investment activities have been developed and operate on the basis of the 1966 Washington Convention “On the Procedure for Resolving Investment Disputes between States and Foreign Persons.” In turn, on the basis of this Convention, the International Center for the Settlement of Investment Disputes (ICSID) was established. The same mechanisms are provided by the 1985 Seoul Convention “On the Establishment of a Multilateral Investment Guarantee Agency (MIGA).”

An analysis of the Washington and Seoul Conventions shows that both of these documents create a single mechanism to protect foreign investments, and they are based on a single principle for regulating investment relations.

ICSID activities

Let us consider in this context the system of the International Center for the Settlement of Investment Disputes (ICSID), which has become the most significant of such systems created so far.

ICSID provides settlement of investment disputes between governments and foreign private investors, either through settlement of differences or through arbitration proceedings. It was created in 1966 in accordance with the Washington Convention on the Settlement of Investment Disputes between States and Nationals of Other States, which, as of April 2006, had been ratified by 143 countries.

The center was established to resolve disputes within the framework of international property law. This refers to disputes arising between states, on the one hand, and foreign individuals and legal entities-investors, on the other hand. Such disputes are considered as private law ones, but the difficulty is that states, by virtue of their sovereignty, have jurisdictional and other immunities. The purpose of the Convention and the reason for creating the Center is to remove such investment disputes from national jurisdiction and transfer them to international arbitration. This eliminates the state's ability to use its jurisdictional immunity.

The Convention on the Settlement of Investment Disputes was developed within the framework of the International Bank for Reconstruction and Development (IBRD), signed in Washington on March 18, 1965 by 46 member states of the Bank and, in accordance with its provisions, entered into force on October 14, 1966. In accordance with the Washington Convention The International Center for Settlement of Investment Disputes was established.

An analysis of the Washington Convention shows that this international legal document creates a single mechanism aimed at protecting foreign investments. At the same time, it proceeds from uniform principles of regulation. It is obvious that Russian legislation cannot ignore this mechanism and these principles.

Structurally, the provisions of the Convention can be divided into two groups: rules governing the activities of ICSID as an international organization with full international legal personality, and rules governing the mechanism for resolving investment disputes. Of greatest interest to us are the norms that belong to the second group, because they contain the procedure for protecting the interests of investors. In turn, the provisions of the Convention on the procedure for resolving investment disputes can be divided into three groups:

1) the rules defining the competence of the ICSID, or, using the terminology of the Convention, the Center for the Resolution of Investment Disputes;

2) provisions governing the procedure for conducting the conciliation procedure;

3) norms regulating the procedure for executing decisions of the Center.

The condition for the parties to contact this body is their written consent to submit disputes for resolution. At the same time, Art. 25 states that consent expressed by the authorized body of a contracting state requires confirmation by the latter at the time the dispute is submitted to the Center for resolution, unless the state stipulates in advance when ratifying the Convention that such approval is not required. These provisions of the Convention, according to the French lawyer D. Bettem, are included in it “in order to satisfy the excessive sensitivity of states, especially manifested when ratifying the Convention, and are aimed at preserving the validity of national rules on state immunity.

Appeal to ICSID is done on a voluntary basis, but, having agreed to arbitration, neither party can unilaterally refuse it.

Primary purpose of ICSID is to create the necessary conditions for reconciliation and arbitration of international investment disputes.

ICSID was created as an impartial international body providing a means of resolving legal disputes between parties, through arbitration or conciliation procedures.

ICSID plays an important role in the field of international investment and economic development, evidence of which is its significant clientele, as well as numerous mentions and references to its activities in investment agreements and laws of various countries.

It is noteworthy that the bulk of ICSID arbitration activity falls in the period after 1990. Over the past 12 years, out of 32 decisions, 20 have been issued. Considering that for the entire previous activity of this one of the leading arbitration centers, i.e. over 24 years, with only 12 decisions made, one can conclude that ICSID is gradually becoming a recognized international arbitration center. It can be assumed that initially, in the 70s of the twentieth century, due to fierce debates within the UN about the priority of sovereignty and national jurisdiction, as discussed in detail above, ICSID was not particularly popular. Subsequently, with the ever-increasing practice of concluding international bilateral treaties, supranational forms of resolving investment disputes finally made their way. This is eloquently evidenced by the fact that only in 2000-2002. ICSID has issued 15 arbitral awards.

It should be noted that four of these 32 arbitral awards were overturned under the Art. 52 of the Convention, according to which any party may, by written application addressed to the Secretary-General of the United Nations, request the setting aside of an arbitral award for one or more of the following reasons: a) the court was improperly constituted; b) the court clearly exceeded its powers; c) there has been corruption of any member of the court; d) there has been a serious departure from any essential rule of procedure; e) the arbitral award does not set out the considerations on which it is based. In accordance with the Centre's procedure, upon receipt of such a request, the Chairman shall promptly appoint from among the persons on the list of arbitrators an ad hoc committee of three persons which may stay the execution of the award pending consideration of such request. If the arbitration award is canceled, the dispute, at the request of either party, is transferred to a new court.

Today, ICSID is the leading international institution involved in the settlement of international investment disputes.

Competence of ICSID. Concept of investment disputes

The jurisdiction of the Center extends to all legal disputes directly related to investments between a contracting state and an individual or legal entity of another contracting state, which the parties have agreed in writing to submit to the Center, i.e. one of the parties to such a dispute must necessarily be a state that has ratified this Convention.

If both parties have expressed their consent to resolve the dispute in accordance with the Convention, then neither of them can cancel it unilaterally. Moreover, the consent of the parties to arbitration on the basis of this Convention excludes any other legal remedies. A contracting state may require that all domestic administrative and judicial remedies be exhausted first.

In accordance with Art. 25 of the Washington Convention of 1965 "On the Settlement of Investment Disputes between States and Individuals or Legal Persons of Other States" to the category " investment disputes " refers to disputes arising in connection with foreign direct investment between a contracting state and persons of other contracting states, namely:

a) investment disputes that arise from relations related to foreign investments;

b) disputes arising between a contracting state and a foreign private investor;

c) legal disputes concerning the essence and scope of the legal rights and obligations of the parties, the conditions and amounts of compensation for violation of obligations under this investment contract.

As you can see, the Washington Convention defines the category of investment disputes quite broadly. Probably, its authors assumed that a more specific definition would be given in the national legislation of the participating countries. This conclusion is confirmed by the provisions of paragraph 4 of Art. 25 of the Convention, which states that A State, having given its consent to the consideration of investment disputes under the procedure of the International Center for Settlement of Investment Disputes provided for by the Convention, may “notify the Center of the category or categories of disputes that it will or, on the contrary, will not consider for referral to the Center.” This makes it possible, according to experts, to draw the following conclusions:

Firstly, a state party to the Convention is given the opportunity to define the concept of “investment disputes” in national legislation.

Secondly, the state, by independently determining the categories of investment disputes referred to ICSID for consideration, indirectly defines the above-mentioned concept.

It should be noted that in the current practice of foreign states, under the influence of the norms of international law existing in this area, the concept "investment disputes" is interpreted quite broadly and includes disputes arising from investment-related relations between the host state and a person of another state who acts as an investor.

The text of the Federal Law of July 9, 1999 “On Foreign Investments in the Russian Federation,” while regulating the procedure for resolving investment disputes, does not provide a broad definition of the very concept of “investment disputes.” It just contains a short definition: Investment dispute is " a dispute between a foreign investor arising in connection with investments and business activities on the territory of the Russian Federation " .

The fact that these basic investment laws do not contain a specific definition of the very definition of “investment disputes” can be explained, presumably, by the following. The concept of “investment dispute” is explained in their articles by bilateral treaties on mutual protection of investments. For example, the Treaty with the United States (Article 6) provides that an investment dispute “is defined as a dispute concerning the interpretation or application of the investment treaty, the existence and consequences of an alleged violation of any right granted by or arising out of this Treaty in relation to the investment.”

From the analysis of legislation, judicial and contractual practice, it follows that the content of the terms “investor” and “investment” are of key importance. The scope of legal protection provided to the investor depends on the interpretation of these and other concepts.

As noted earlier, the competence of ICSID is disputes between the investor and the state receiving the investment. It is generally accepted that this category of investment disputes can be divided into three groups:

1. The first group includes investment disputes that relate to the conditions and procedure for payment of compensation in the event of nationalization and the implementation of other coercive measures, compensation for losses in the event of armed conflicts, causing losses to the investor by the actions of state bodies and officials in similar cases.

2. The second group includes various property and economic disputes: between participants in joint ventures, one participant with the joint venture itself; between enterprises and firms in the country of location of the enterprise with foreign investments or with legal entities and individuals of other countries. According to M.M. Boguslavsky, the above-mentioned disputes can be defined as other disputes related to foreign investment. However, as he believes, by their nature, as a rule, these are not disputes with the state, but various civil law (economic) disputes between equal entities * (271).

3. The third group covers disputes between the investor and the state authorities of the country. By their nature, these are administrative-legal disputes.

Thus, from all of the above, we can conclude that the Washington Convention brought a wide range of disputes within the competence of ICSID, without in the least infringing on the immunity of the receiving state. Thanks to this approach, it attracted a large number of participants.

In accordance with the 1979 Additional Protocol to the Washington Convention, ICSID is competent to resolve a dispute even if one of the parties to the dispute - the state or the state of the party to the dispute (investor) - is not a party to the Convention. This seems especially important for Russia, which signed the Washington Convention in 1992 but has not yet ratified it. The Model Draft of the Government of the Russian Federation provides that in order to resolve investment disputes it is possible to resort to the means of dispute resolution provided for in these Additional Protocols.

Organizational structure of ICSID

The center is located at the headquarters of the International Bank for Reconstruction and Development in Washington. The location of the Center may be changed by decision of the Administrative Council adopted by a two-thirds majority vote of its members.

ICSID has a simple organizational structure consisting of an Administrative Council and a Secretariat.

Administrative Council.

The Administrative Council is the governing body of ICSID. The Administrative Council consists of one representative from each Contracting State. A deputy representative may act as a representative if the latter is not present at the meeting or is unable to perform his functions.

The President of the Bank is ex officio Chairman of the Administrative Council, but does not have voting rights. In the event of his absence or inability to perform his functions, as well as during any period of time when the position of the President of the Bank remains vacant, the person acting as the President acts as the Chairman of the Administrative Council.

The Administrative Council shall hold an annual meeting and such other meetings as may be held by decision of the Council or called by the Chairman or the Secretary General at the request of not less than five members of the Council.

Main functions of the Administrative Council include the selection of the Secretary-General and the Representative of the Secretary-General, the adoption of instructions and rules for the establishment and conduct of ICSID hearings, the adoption of the ICSID budget, and the approval of the annual report on the operation of ICSID. It may also perform other functions that are necessary to achieve the goals of creating ICSID.

Members of the Administrative Council and its Chairman perform their functions without receiving remuneration from the Center.

Secretariat

The Secretariat consists of the Secretary General, Deputy Secretary General and staff. Secretary General - ICSID legal representative and chief executive officer. He appoints employees, registers and authenticates arbitral awards, and certifies their copies.

Deputy Secretary General is responsible for the day-to-day work of the Secretariat, and also acts as the Secretary General in the event of his/her absence or inability to perform his/her duties.

Currently the Deputy Secretary General is Mr. Nassib G. Ziadé. Due to the departure of Ana Palacio from April 15, 2008, he also serves as Secretary General.

Main functions of the Secretariat include providing established support for the initiation and conduct of ICSID hearings; assistance in the formation of conciliation commissions, arbitration tribunals and ad hoc committees; managing hearings and funding on a case-by-case basis. The Secretariat also ensures the functioning of the Administrative Council and guarantees the functioning of ICSID as an international institution and center for the publication of information.

The Secretariat also leads lists of conciliators and arbitrators. Each Contracting State may appoint to each list 4 persons who may, but do not have to be, its nationals. The chairman can appoint 10 people to each list. Persons so appointed to the list must be of different nationalities.

The administrative costs of the Secretariat are financed from the budget of the International Bank. In accordance with Art. 17 of the Washington Convention, if the expenses of the Center cannot be covered by fees for the use of its structures or by other revenues, the surplus shall be distributed among the Contracting States that are members of the Bank in proportion to the share of participation of each of them in the capital capital of the Bank, and among the Contracting States, non-members of the Bank - in accordance with the rules approved by the Administrative Council.

Dispute resolution procedure

Any contracting state or any natural or legal person of a contracting state wishing to initiate arbitration proceedings shall make a written request to do so to the Secretary General of the Center, who shall send a copy thereof to the other party.

The arbitration court is formed as soon as possible after registration of the request.

The court consists of one arbitrator or any odd number of arbitrators appointed by agreement of the parties. If the parties have not agreed on the number of arbitrators and the procedure for their appointment, the court is formed by three arbitrators, one of whom is appointed by each of the parties, and the third, who is the chairman of the court, is appointed by agreement of the parties.

The majority of the arbitrators must be nationals of states other than the contracting state whose individual or legal entity is a party to the dispute; provided, however, that this provision shall not apply in the case where the sole arbitrator or any individual member of the court is appointed by agreement of the parties.

The court resolves the dispute in accordance with such rules of law as may be agreed upon by the parties. In the absence of such an agreement, the court will apply the law of the contracting state that is a party to the dispute (including its conflict of laws rules) and such rules of international law as may be applied.

The arbitration award of the court is drawn up in writing and signed by the members of the court who voted for it. It must cover all the issues before the court and contain the considerations on which it is based.

The Secretary General shall promptly forward certified copies of the arbitral award to the parties. The arbitration award is considered made on the day its certified copies are sent.

Any party may, by means of a written application addressed to the Secretary General of the court, request a review of the arbitral award on the basis of the discovery of any fact that significantly affects the award, provided that at the time the award was made this fact was unknown to the court and the applicant and that ignorance it was not the result of negligence by the applicant. The application must be submitted within 90 days after discovery of such a fact and, in any case, within three years from the date of the arbitration award.

Either party may, by written application addressed to the Secretary General, request the setting aside of an arbitral award for only one or more of the following reasons:

· the court was formed improperly;

· the court clearly exceeded its powers;

· there has been corruption of any member of the court;

· a serious departure from any essential rule of procedure has been made;

· the arbitral award does not set out the considerations on which it is based.

The application must be submitted within 120 days from the date of the award, except in the case where the request for annulment is based on the fact of corruption: such an application must be submitted within 120 days after the discovery of the fact of corruption and in any case within three years from the date of the award .

Upon receipt of the request, the chairman of the court shall immediately appoint an ad hoc committee of three persons from among the persons included in the list of arbitrators. The Committee has the right to set aside the arbitral award or part of it.

If the arbitration award is canceled, the dispute, at the request of either party, is transferred to a new court formed in the manner prescribed by the Convention.

The arbitral award is binding on the parties and is not subject to any appeal or other correction, except as provided in this Convention. Each contracting state must recognize an arbitral award rendered under the Convention as binding and fulfill the financial obligations imposed by that award within its territory as if it were a final decision of the court of that state.

The procedure for enforcement of an arbitral award is determined by the laws on the enforcement of court decisions in force in the state in whose territory such enforcement is sought.

Conclusion

Direct investor-state arbitration, as discussed above, has been the subject of controversy for many years. Traditionally, investment disputes have been settled through negotiations between states, sometimes through interstate arbitration. Latin American countries did not recognize any foreign arbitration over acts of sovereign governments. Western countries were no different: their governments almost never agreed to submit concession agreements for the development of mineral resources to international arbitration. The overly unilateral interpretation of national sovereignty has lost much of its force in the last two decades, also thanks to the success of ICSID, which created the legal basis (and confirmed the political acceptability) of submitting investment disputes to a specially created international arbitration institution with specific rules of procedure.

From the point of view of the theory and practice of international investment law, the principle that national investment laws can establish mandatory arbitration procedures without the right to choose does not stand up to criticism. Paragraph 24 of the Report of the Board of Governors of the World Bank, which is annexed to the 1965 Convention on the Settlement of Investment Disputes between States and Nationals of Other States, states: “The host State, in its investment promotion legislation, should offer to refer disputes arising in connection with certain types of investments, for judicial review by the Center, and the investor can consent to this in writing."

This means that if the law is temporarily repealed, the investor can wait until a dispute arises to declare its intention to use this arbitration mechanism, which until then will only be binding on the state. The reasonableness and promise of this principle is confirmed by the very fact that the ICSID Convention was signed by 130 states.

The practice of ICSID decisions is of great importance for understanding the effectiveness of international investment arbitration, the most important of which are, in particular, the precedents in the cases of Texas, Liamco, BP, Aminoil, Revere Copper, AGIP. These court cases contributed most to the formation of the doctrine of international law relating to government contracts.

ICSID transnational arbitration has thus played a significant role in the development of international investment law. This can be explained by two reasons. Firstly, the inability of the states themselves to specify the basic norms of international law through an international treaty. Secondly, the high degree of autonomy that modern arbitration laws provide to matters of transnational trade. As a result, supranational arbitration of a permanent nature (or ad hoc form) has become an important and almost autonomous institution through which independent international law is developed.

Bibliography

Regulations:

1. Washington Convention of 1965 “On the Settlement of Investment Disputes between States and Individuals or Legal Entities of Other States”

2. Federal Law of July 9, 1999 N 160-FZ “On Foreign Investments in the Russian Federation.” Adopted by the State Duma on June 25, 1999. Approved by the Federation Council on July 2, 1999.

Scientific publications:

3. Velyaminov G.M., International economic law and process (Academic course): Textbook. M.: "Walters Kluwer", 2004

4. Farkhutdinov I.Z. International investment law: theory and practice of application. M.: Wolters Kluwer, 2005 p. 117

5. Farkhutdinov I.Z., Trapeznikov V.A. Investment law: educational and practical guide. M.: Wolters Kluwer, 2006 p. 364

Periodicals:

6. Shcherbinin S.S. The procedure for resolving disputes related to investment activities carried out in the form of capital investments // "Law and Economics", No. 2, February 2005.

7. Farkhutdinov I.Z. Forms and methods of resolving international investment disputes // "Lawyer". - N 3. - March 2005

1. Official website of ICSID www. icsid.worldbank.org

Farkhutdinov I.Z. Forms and methods of resolving international investment disputes //

Velyaminov G.M., International economic law and process (Academic course): Textbook. M.: "Walters Kluwer", 2004 p. 247

Farkhutdinov I.Z. International investment law: theory and practice of application. M.: Wolters Kluwer, 2005 p. 117

Farkhutdinov I.Z. International investment law: theory and practice of application. M.: Wolters Kluwer, 2005 p. 120

Washington Convention of 1965 “On the Settlement of Investment Disputes between States and Individuals or Legal Entities of Other States” Art. 25

Farkhutdinov I.Z. International investment law: theory and practice of application. M.: Wolters Kluwer, 2005 p. 134.

Federal Law of July 9, 1999 N 160-FZ “On Foreign Investments in the Russian Federation.” Adopted by the State Duma on June 25, 1999. Approved by the Federation Council on July 2, 1999. Article 10

Farkhutdinov I.Z., Trapeznikov V.A. Investment law: educational and practical guide. M.: Wolters Kluwer, 2006 p. 56

Washington Convention of 1965 “On the Settlement of Investment Disputes between States and Individuals or Legal Entities of Other States” Art. 3-8

Official website of ICSID www. icsid.worldbank.org

Shcherbinin S.S. The procedure for resolving disputes related to investment activities carried out in the form of capital investments // "Law and Economics", No. 2, February 2005.

Farkhutdinov I.Z. International investment law: theory and practice of application. M.: Wolters Kluwer, 2005 p. 257

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International University in Moscow

Faculty of Law

by discipline

"International Investment Law"

« International Center for Settlement of Investment Disputes »

Prepared by: Astrova Yana

Plan

Introduction

ICSID activities

Competence of ICSID. Concept of investment disputes

Organizational structure of ICSID

Dispute resolution procedure

Conclusion

Bibliography

Introduction

An increase in the economic activity of states gives rise to an increase in the number of investment disputes.

ICSID activities

Let us consider in this context the system of the International Center for the Settlement of Investment Disputes (ICSID), which has become the most significant of such systems created so far.

1) the rules defining the competence of the ICSID, or, using the terminology of the Convention, the Center for the Resolution of Investment Disputes;

2) provisions governing the procedure for conducting the conciliation procedure;

3) norms regulating the procedure for executing decisions of the Center.

Appeal to ICSID is done on a voluntary basis, but, having agreed to arbitration, neither party can unilaterally refuse it.

Primary purpose of ICSID is to create the necessary conditions for reconciliation and arbitration of international investment disputes.

ICSID was created as an impartial international body providing a means of resolving legal disputes between parties, through arbitration or conciliation procedures.

Preamble

Contracting States,

Considering the need for international cooperation for the purposes of economic development and the role that private international investment plays in this area,

Bearing in mind the possibility that disputes may arise from time to time between Contracting States and individuals or entities of other Contracting States in connection with such investments,

Recognizing that, although national legal procedures generally apply to such disputes, international methods of settlement may be appropriate in certain cases,

Attaching particular importance to the existence of structures for international conciliation and arbitration to which Contracting States and individuals or entities of other Contracting States could submit such disputes if they so wish,

Desiring to create such structures under the auspices of the International Bank for Reconstruction and Development,

Recognizing that the mutual agreement of the Parties to submit such disputes to conciliation or arbitration through such structures constitutes a binding agreement which requires, inter alia, that the recommendations of the conciliators be given due consideration and that the arbitral awards be implemented,

Declaring that no Contracting State shall, by the mere fact of ratification, acceptance or approval of this Convention and without its consent, be deemed to have undertaken the obligation to submit any particular dispute to conciliation or arbitration,
have agreed on the following:

CHAPTER I. INTERNATIONAL CENTER FOR SETTLEMENT OF INVESTMENT DISPUTES

Section 1

CREATION AND DEVICE

Article 1

1. The International Center for Settlement of Investment Disputes (hereinafter referred to as the “Center”) is hereby established.

2. The purpose of the Center is to provide structures for conciliation and arbitration in connection with investment disputes between Contracting States and individuals or legal entities of other Contracting States in accordance with the provisions of this Convention.

Article 2

The Center will be located at the headquarters of the International Bank for Reconstruction and Development (hereinafter referred to as the “Bank”). The location of the Center may be changed by decision of the Administrative Council adopted by a two-thirds majority vote of its members.

Article 3

The Center includes the Administrative Council and the Secretariat and maintains a list of conciliators and a list of arbitrators.

Section 2

ADMINISTRATIVE BOARD

Article 4

1. The Administrative Council shall include one representative from each Contracting State. A deputy representative may act as a representative if the latter is not present at the meeting or is unable to perform his functions.

2. Unless otherwise designated, each Governor and Deputy Governor of the Bank appointed by a Contracting State shall be ex officio the Representative and his Deputy respectively.

Article 5

The President of the Bank is the ex officio Chairman of the Administrative Council (hereinafter referred to as the “Chairman”), but does not have voting rights. In the event of his absence or inability to perform his functions, as well as during any period of time when the position of the President of the Bank remains vacant, the person acting as the President shall act as the Chairman of the Administrative Council.

Article 6

1. Without prejudice to the powers and functions conferred on it by other provisions of this Convention, the Governing Body:

a) approves the administrative and financial regulations of the Center;

b) approves the rules of procedures for initiating conciliation and arbitration procedures;

c) approves the rules of procedure for the application of conciliation and arbitration procedures (hereinafter referred to as the “Rules of the conciliation procedure” and the “Rules of the arbitration procedure”);

d) approves agreements with the Bank regarding the use of its administrative structures and services;

e) determines the conditions of activity of the Secretary General and any Deputy Secretary General;

f) approves the annual budget of income and expenses of the Center,

g) approves the annual report on the activities of the Center.

The decisions referred to in subparagraphs "a", "b", "c" and "f" above are taken by a two-thirds majority vote of the members of the Administrative Council.

2. The Administrative Council may appoint such committees as it deems necessary.

3. The Administrative Council shall also exercise such other powers and perform such other functions as in its opinion are necessary for the implementation of the provisions of this Convention.

Article 7

1. The Administrative Council shall hold an annual meeting, as well as such other meetings as may be held by decision of the Council or convened by the Chairman or the Secretary General at the request of at least five members of the Council.

2. Each member of the Administrative Council has one vote and, unless otherwise provided by this Convention, all matters in the Council are decided by a majority of the votes cast.
3. The quorum for any meeting of the Administrative Council is a majority of its members.

4. The Governing Body may, by a two-thirds majority of its members, establish a procedure by which the Chairman may hold a vote in the Council without convening a meeting. The vote will be considered valid only if a majority of the Council members vote within the time limit provided for by the said procedure.

Article 8

Members of the Administrative Council and its Chairman perform their functions without receiving remuneration from the Center.

Section 3

SECRETARIAT

Article 9

The Secretariat consists of the Secretary General, one or more deputies and staff.

Article 10

1. The Secretary General and any Deputy Secretary General are elected by the Administrative Council by a two-thirds majority vote of its members on the proposal of the Chairman for a term of no more than 6 years and may be re-elected. After consultation with the members of the Administrative Council, the Chairman shall propose one or more candidates for each such position.

2. The performance of the duties of the Secretary General and Deputy Secretary General is incompatible with the exercise of any political functions. Neither the Secretary General nor any Deputy Secretary General may hold any other office or perform any other work without the approval of the Administrative Council.

3. In the event of the absence of the Secretary General or his inability to perform his functions, as well as during any period of time when the position of the Secretary General remains vacant, his deputy shall act as the Secretary General. If there are several Deputy Secretaries General, the Administrative Council shall determine in advance in what order they will act as Secretary General.

Article 11

The Secretary General is the legal representative and chief officer of the Center and is responsible for its administration, including the appointment of staff, in accordance with the provisions of this Convention and the rules approved by the Administrative Council. He shall act as a registrar and shall be authorized to authenticate arbitral awards rendered under this Convention and to certify copies thereof.

Section 4

LISTS

Article 12

The list of conciliators and the list of arbitrators shall include qualified persons appointed in the manner provided for in this Convention and who have expressed a desire to perform such functions.

Article 13

1. Each Contracting State may appoint to each list four persons who may, but need not, be its nationals.

2. The Chairman may appoint ten people to each list. Persons so appointed to the list must be of different nationalities.

Article 14

1. Persons appointed to the lists must be of high moral character and recognized competence in law, commerce, industry or finance so that they can be expected to make independent decisions. Competence in the field of law is of particular importance in relation to persons included in the list of arbitrators.

2. The Chairman, in appointing persons to the lists, shall also give due consideration to ensuring that the lists represent the major legal systems of the world and the major forms of economic activity.

Article 15

1. Persons included in the lists perform their duties for a six-year period, which can be renewed.

2. In the event of the death or resignation of a person included in the list, the person who appointed him has the right to appoint another person to perform duties during the remaining term of office.

3. Persons included in the lists perform their duties until their successors are appointed.

Article 16

1. The same person may be included in both lists.

2. If any person is appointed to the same list by several Contracting States or by one or more Contracting States and the Chairman, he shall be deemed to have been appointed by the one who first appointed him, or, if one of those who appointed him is the State , of which that person is a citizen, he will be deemed to have been designated by that State.

3. All appointments must be notified to the Secretary-General and shall take effect on the date of receipt by him of the relevant notification.

Section 5

FINANCING THE CENTER

Article 17

If the costs of the Center cannot be met by fees for the use of its facilities or by other revenues, the surplus shall be distributed among the Contracting States which are members of the Bank in proportion to the share of each of them in the capital stock of the Bank, and among the Contracting States which are not members of the Bank. , - in accordance with the rules approved by the Administrative Council.

Section 6

STATUS, IMMUNITIES AND PRIVILEGES

Article 18

The Center has full international legal personality. The legal capacity of the Center includes the right to:

a) enter into contracts;

b) acquire and dispose of movable and immovable property;

c) initiate legal proceedings.

Article 19

In order to ensure the performance of its functions by the Center, it shall enjoy in the territory of each Contracting State the immunities and privileges provided for in this section.

Article 20

The Center, its property and assets enjoy all types of judicial immunity, except in cases where the Center waives this immunity.

Article 21

The Chairman, members of the Administrative Council, persons acting as conciliators or arbitrators, members of the committee appointed pursuant to paragraph 3 of Article 52, as well as employees and employees of the Secretariat:

a) enjoy judicial immunity in respect of acts committed by them in the performance of their functions, except in cases where the Center waives this immunity;

(b) who are not nationals of that State shall enjoy the same immunities with respect to immigration restrictions, alien registration requirements and conscription, the same benefits with respect to exchange restrictions and the same treatment with respect to movement as are accorded by Contracting States to representatives, officers and employees of comparable rank to other Contracting States.

Article 22

The provisions of Article 21 apply to persons participating in proceedings under this Convention as Parties, representatives, consultants, lawyers, witnesses and experts; provided, however, that subsection (b) of this section shall apply only in connection with their travel to and from the place of such proceedings and their stay at that place.

Article 23

1. The archives of the Center are inviolable, no matter where they are located.

2. With regard to its official correspondence and communications, the Center shall be accorded by each Contracting State treatment no less favorable than that accorded to other international organizations.

Article 24

1. The Centre, its assets, property and income, as well as its operations and transactions authorized by this Convention, shall be exempt from all taxation and customs duties. The Center is also exempt from liability for the collection or payment of any taxes or customs duties.

2. Unless we are talking about local individuals and legal entities, then no taxes are imposed on amounts to cover expenses paid by the Center to the Chairman or members of the Administrative Council, as well as salaries, amounts to cover expenses and other remuneration paid by the Center to officials and employees of the Secretariat .

3. There shall be no tax on fees and expenses received by persons who participate in proceedings under this Convention as conciliators, arbitrators or members of a committee established pursuant to Article 52, paragraph 3, if the sole legal basis for the levy of such taxes is the location of the Center or the place where such proceedings are held or the place where such fees or amounts are paid.

CHAPTER II. JURISDICTION OF THE CENTER

Article 25

1. The jurisdiction of the Center shall extend to all legal disputes directly related to investments between a Contracting State (or any subdivision or agency of a Contracting State designated to the Center by that State) and an individual or legal entity of another Contracting State, which the Parties have agreed in writing to submit to the Center. If both Parties have expressed their consent, neither of them can cancel it unilaterally.

2. The term "natural or legal person of another Contracting State" means:

a) any individual who had the nationality of a Contracting State other than the State that is a Party to the dispute on the day on which the Parties agreed to submit such dispute to conciliation or arbitration, as well as on the day on which, in accordance with paragraph 3 of Article 28 or paragraph 3 of Article 36 the relevant request has been registered, but excludes any person who, on one of the specified dates, also had the nationality of the Contracting State that is a Party to the dispute; And

b) any legal entity which had the nationality of a Contracting State other than the State which is a Party to the dispute on the date on which the Parties agreed to submit such dispute to conciliation or arbitration, and any legal entity which on that date had the nationality of a Contracting State which is a Party to the dispute A party to the dispute, but which, due to foreign control, the Parties have agreed to be treated as a legal entity of another Contracting State within the meaning of this Convention.

3. The consent of a subdivision or agency of a Contracting State shall require the approval of that State, unless the latter notifies the Center that such approval is not required.

4. Any Contracting State may, at the time of ratification, acceptance or approval of this Convention or at any subsequent time, notify the Center of the category or categories of disputes which it will or will not consider to be subject to the jurisdiction of the Centre. The Secretary General shall promptly transmit such notification to all Contracting States. Such notification does not constitute consent as provided in paragraph 1.

Article 26

The consent of the Parties to arbitration under this Convention shall be deemed, unless otherwise stated, to be consent to such arbitration to the exclusion of any other remedies. A contracting State may require, as a condition of its consent to arbitration under this Convention, that all local administrative and judicial remedies must first be exhausted.

Article 27

1. No Contracting State shall grant diplomatic protection or bring an international claim in respect of a dispute which one of its natural or legal persons and another Contracting State has agreed to submit or has submitted to arbitration under this Convention, unless the other such Contracting State fails to comply with or comply with an arbitration award rendered in relation to such dispute.

2. Diplomatic protection within the meaning of paragraph 1 does not include informal diplomatic contacts with the sole purpose of facilitating the settlement of a dispute.

CHAPTER III. RECONCILIATION

Section 1

REQUEST FOR RECONCILIATION

Article 28

1. Any Contracting State or any natural or legal person of a Contracting State wishing to initiate conciliation proceedings shall make a written request to do so to the Secretary General, who shall forward a copy of the request to the other Party.

2. The request must contain information about the subject of the dispute, who the Parties to the dispute are, and their consent to reconciliation in accordance with the rules of procedure for initiating conciliation and arbitration procedures.

Section 2

FORMATION OF THE CONCILIATION COMMISSION

Article 29

2. a) The Commission consists of one conciliator or any odd number of conciliators appointed by agreement of the Parties.

b) If the Parties have not agreed on the number of conciliators and the procedure for their appointment, the Commission is formed of three conciliators, one of whom is appointed by each of the Parties, and the third, who is the chairman of the Commission, is appointed by agreement of the Parties.

Article 30

If the Commission has not been constituted within 90 days after the Secretary-General has given notice of the registration of a request in accordance with Article 28, paragraph 3, or such other period as may be agreed upon by the Parties, the Chairperson, at the request of either Party and after as detailed consultation as possible with both Parties, shall appoint a conciliator or conciliators who have not yet been appointed.

Article 31

1. Conciliators may be appointed from among persons not included in the list of conciliators, except when the appointment is made by the Chairman in accordance with Article 30.

2. Conciliators appointed from among persons not included in the list of conciliators must have the qualities specified in paragraph 1 of Article 14.

Section 3

CONCILIATION PROCEDURE

Article 32

1. The commission has the right to independently decide on its competence.

2. Any objection by a Party to the dispute that the dispute does not fall within the jurisdiction of the Center or is otherwise beyond the competence of the Commission shall be considered by the Commission, which will determine whether such objection is considered as a preliminary issue or as part of the determination of the dispute on the merits .

Article 33

Any conciliation procedure is carried out in accordance with the provisions of this section and, except when the Parties agree otherwise, in accordance with the Rules of the Conciliation Procedure in force on the day the Parties agreed to reconciliation. If any procedural question arises not regulated by this section or the Rules of Conciliation Procedure or any rules agreed upon by the Parties, such question shall be resolved by the Commission.

Article 34

1. The duty of the Commission is to clarify the subject of the dispute between the Parties and to seek agreement between them on mutually acceptable terms. For these purposes, the Commission may, at any stage of the proceedings and from time to time, recommend terms of settlement to the Parties. Parties must cooperate in good faith with the Commission to enable it to carry out its functions and take its recommendations into account most seriously.

2. If the Parties come to an agreement, the Commission draws up a protocol that indicates the subject of the dispute and records the fact that the Parties have reached an agreement. If at any stage of the proceedings it becomes obvious to the Commission that an agreement between the Parties is unlikely, it will terminate the proceedings and draw up a protocol indicating the fact that the dispute has been referred to it and recording that the Parties have not reached an agreement. In case of failure to appear or non-participation of one of the Parties in the proceedings, the Commission terminates the proceedings and draws up a protocol in which the failure to appear or non-participation of this Party is recorded.

Article 35

Except as otherwise agreed by the Parties to the dispute, neither Party to the conciliation proceedings shall, in any other proceedings, whether in arbitration or in an ordinary court or elsewhere, adduce or refer to opinions expressed or statements or admissions or proposals for settlement made by the other Party during the conciliation procedure, as well as on the record or any recommendations of the Commission.

CHAPTER IV. ARBITRATION

Section 1

REQUEST FOR ARBITRATION

Article 36

1. Any Contracting State or any natural or legal person of a Contracting State wishing to initiate arbitration proceedings shall make a written request to do so to the Secretary General, who shall forward a copy of the request to the other Party.

2. The request must contain information about the subject of the dispute, who the Parties to the dispute are, and their consent to arbitration in accordance with the rules of procedure for initiating conciliation and arbitration procedures.

3. The Secretary-General shall register the request unless he considers, on the basis of the information contained in the request, that the dispute clearly falls outside the jurisdiction of the Centre. He must immediately notify the Parties of registration or refusal of registration.

Section 2

FORMATION OF THE COURT

Article 37

2. a) The Court consists of one arbitrator or any odd number of arbitrators appointed by agreement of the Parties.

b) If the Parties have not agreed on the number of arbitrators and the procedure for their appointment, the Court is formed of three arbitrators, one of whom is appointed by each of the Parties, and the third, who is the Chairman of the Court, is appointed by agreement of the Parties.

Article 38

If the Court has not been constituted within 90 days after the Secretary-General has given notice of the registration of a request in accordance with Article 36, paragraph 3, or such other period as may be agreed upon by the Parties, the President, at the request of either Party and after consultation with both Parties as fully as possible, shall appoint arbitrator or arbitrators who have not yet been appointed. The arbitrators appointed by the President under this article shall not be nationals of a Contracting State that is a Party to the dispute or a Contracting State of which the person or entity is a Party to the dispute.

Article 39

The majority of the arbitrators must be nationals of states other than the Contracting State that is a Party to the dispute and the Contracting State whose individual or legal entity is a Party to the dispute; provided, however, that the above provisions of this article shall not apply in the case where the sole arbitrator or any individual member of the Court is appointed by agreement of the Parties.

Article 40

1. Arbitrators may be appointed from among persons not included in the list of arbitrators, except when the appointment is made by the Chairman in accordance with Article 38.

2. Arbitrators appointed from among persons not included in the list of arbitrators must have the qualities specified in paragraph 1 of Article 14.

Section 3

POWERS AND FUNCTIONS OF THE COURT

Article 41

1. The court has the right to independently decide on its competence.

2. Any objection by a Party to the dispute that the dispute does not fall within the jurisdiction of the Center or is otherwise beyond the jurisdiction of the Court shall be considered by the Court, which will determine whether to consider such objection as a preliminary issue or as part of the determination of the dispute on the merits .

Article 42

1. The court resolves the dispute in accordance with such rules of law as may be agreed upon by the Parties. In the absence of such an agreement, the Court will apply the law of the Contracting State that is a Party to the dispute (including its conflict of laws rules) and such rules of international law as may be applicable.

2. The court cannot make a decision non liquet, citing the absence or ambiguity of legal norms.

3. The provisions of paragraphs 1 and 2 do not prejudice the right of the Court to resolve the dispute ex aequo et bono if the Parties agree on this.

Article 43

Unless the Parties otherwise agree, the Court may, if it considers it necessary, at any stage of the proceedings:

a) invite the Parties to submit documents or other evidence, and

(b) visit the place connected with the dispute and make such investigation as he may consider appropriate.

Article 44

Any arbitration proceeding shall be conducted in accordance with the provisions of this section and, except as otherwise agreed by the Parties, in accordance with the Rules of Arbitration Procedure in effect on the date the Parties agreed to arbitration. If any procedural issue arises not regulated by this section or the Rules of Arbitration Procedure or the rules agreed upon by the Parties, such issue shall be resolved by the Court.

Article 45

1. Failure of a Party to appear at a hearing or its failure to provide explanations on the case is not considered recognition of the statements of the other Party.

2. If a Party does not appear at the hearing or does not submit its explanations on the case at any stage of the proceedings, the other Party may ask the Court to consider the issues submitted to it and make an arbitral award. Before making a decision, the Court must notify the Party that fails to appear at the hearing or fail to submit an explanation in the case and grant it an adjournment, unless it is satisfied that that Party does not intend to participate in the proceedings.

Article 46

Unless the Parties agree otherwise, the Court, at the request of either Party, will rule on any related or additional claims or counterclaims arising directly from the subject matter of the dispute, provided that they are otherwise agreed to by the Parties and otherwise thus fall under the jurisdiction of the Centre.

Article 47

Unless the Parties otherwise agree, the Court may, if in its opinion the circumstances so require, recommend any provisional measures to be taken to protect the relevant rights of either Party.

Section 4

ARBITRATION AWARD

Article 48

2. The arbitration award of the Court is drawn up in writing and signed by the members of the Court who voted for it.

3. The arbitral award must address all issues submitted to the Court and contain the considerations on which it is based.

4. Any member of the Court may attach his personal opinion to the arbitration award, regardless of whether it differs from the opinion of the majority or not, or a statement of his disagreement.

5. The Center does not publish an arbitration award without the consent of the Parties.

Article 49

1. The Secretary General shall promptly forward certified copies of the arbitral award to the Parties. The arbitration award is considered made on the day its certified copies are sent.

2. At the request of either Party made within 45 days of the date of the award, the Court may, after notice to the other Party, decide on any matter not settled in the award and shall correct any typographical, arithmetic or similar errors in the arbitration award. Such a decision of the Court becomes part of the arbitration award and is brought to the attention of the Parties in the same manner as the arbitration award. The time limits provided for in paragraph 2 of Article 51 and in paragraph 2 of Article 52 are calculated from the date of the decision.

Section 5

INTERPRETATION, REVIEW AND CANCELLATION OF AN ARBITRATION AWARD

Article 50

1. In the event of a dispute between the Parties regarding the meaning or scope of an arbitral award, either Party may, by means of a written application addressed to the Secretary General, request an interpretation of the award.

2. Such a request shall be submitted, if possible, to the Court that made the award. If this is not possible, a new Court shall be formed in accordance with Section 2 of this Chapter. The court may, if, in its opinion, the circumstances so require, suspend enforcement of the award pending consideration of such a request.

Article 51

1. Any Party may, by written application addressed to the Secretary-General, request a review of an arbitral award on the basis of the discovery of any fact of a nature which significantly affects that award, provided that at the time the award was made this fact was unknown to the Court and the applicant and that the applicant's ignorance of this fact was not the result of negligence.

2. The application is submitted within 90 days after the discovery of such a fact and, in any case, within three years from the date of the arbitration award.

3. Such a request shall be submitted, if possible, to the Court that made the award. If this is not possible, a new Court shall be formed in accordance with Section 2 of this Chapter.

4. The court may, if, in its opinion, the circumstances so require, suspend the execution of the arbitral award pending consideration of such a request. If the applicant requests in his application to suspend the execution of the arbitral award, the execution is temporarily suspended until the Court makes a decision on such a request.

Article 52

1. Any Party may, by written application addressed to the Secretary General, request the setting aside of an arbitral award for one or more of the following reasons:

a) The court was not constituted properly;

b) The court has clearly exceeded its powers;

c) there has been corruption of any member of the Court;

d) there has been a serious departure from any essential rule of procedure; or

e) the award does not set out the considerations on which it is based.

2. The application shall be submitted within 120 days from the date of the arbitral award, with the exception that in the case where the request for annulment is based on the fact of corruption, such application shall be submitted within 120 days after the discovery of the fact of corruption and in any case within three years from the date of the arbitration award.

3. Upon receipt of the request, the Chairman shall immediately appoint, from among the persons included in the list of arbitrators, an “ad hoc” Committee consisting of three people. No member of this Committee shall be a member of the Court that made the arbitral award, have the same nationality as any member of such Court, be a citizen of a State that is a Party to the dispute or a State of which an individual or legal entity is a Party to the dispute, be entered into the list of arbitrators by any of these states or to be a person who acted as a conciliator in the same dispute. The Committee has the right to set aside an arbitral award or part thereof for any of the reasons specified in paragraph 1.

4. The provisions of Articles 41 to 45, 48, 49, 53 and 54 and the provisions of Chapter VI and Chapter VII shall apply mutatis mutandis to proceedings before such Committee.

5. The Committee may, if in its opinion the circumstances so require, suspend enforcement of the award pending consideration of such a request. If the applicant requests in his application to suspend the execution of the arbitral award, execution is temporarily suspended until the Committee makes a decision on such a request.

6. In the event of cancellation of the arbitration award, the dispute, at the request of either Party, is transferred to a new Court formed in accordance with Section 2 of this chapter.

Section 6

RECOGNITION AND ENFORCEMENT OF AN ARBITRATION DECISION

Article 53

1. The arbitration award is binding on the Parties and is not subject to any appeal or other correction, except as provided for in this Convention. Each Party shall comply with and comply with the terms of the arbitral award, except where enforcement is suspended in accordance with the relevant provisions of this Convention.

2. For the purposes of this section, the term “award” includes any decision on the interpretation, review or setting aside of such an award under Articles 50, 51 or 52.

Article 54

1. Each Contracting State shall recognize an arbitral award made under this Convention as binding and shall comply with the financial obligations imposed by that award within its territory as if it were a final award of a court of that State. A contracting State with a federal structure may enforce an arbitral award in or through its federal courts and may provide for the award to be considered by such courts as if it were a final decision of the courts of the constituent States of that federation.

2. The party seeking recognition or enforcement in the territory of a Contracting State shall submit to the competent Court or other authority designated by such State for this purpose a copy of the award certified by the Secretary General. Each Contracting State shall notify the Secretary-General of the designation of the competent court or other authority for this purpose and of any subsequent change in such designation.

3. The procedure for enforcement of an arbitral award is determined by the laws on the enforcement of court decisions in force in the state in whose territory such enforcement is sought.

Article 55

CHAPTER V. REPLACEMENT AND DISQUALIFICATION OF CONCILITORS AND ARBITRATORS

Article 56

1. Once the Commission or Court has been constituted and proceedings have commenced, its composition shall remain unchanged, provided, however, that in the event of the death, incapacity or resignation of the conciliator or arbitrator, the vacancy resulting shall be filled in accordance with the provisions of Section 2 of Chapter III or Section 2 of Chapter IV.

2. A member of the Commission or the Court continues to act in that capacity notwithstanding that he is no longer on the list.

3. If a conciliator or arbitrator appointed by any Party resigns without the consent of the Commission or the Court of which he is a member, the Chairman shall appoint another person from the appropriate list to fill the vacancy.

Article 57

A Party may raise before the Commission or the Court the question of the disqualification of any of its or its members on the basis of any fact indicating a clear lack of qualities provided for in paragraph 1 of Article 14. In addition, a Party in the arbitration procedure may raise the question of the disqualification of an arbitrator under the reason that he did not meet the requirements for appointment to the Court under Section 2 of Chapter IV.

Article 58

Any question of disqualification of any one conciliator or arbitrator shall be decided by the other members of the Commission or the Court, respectively, provided, however, that in the event of the votes of those members being equally divided or if the question of disqualification of a single conciliator or arbitrator is raised, or of a majority conciliators or arbitrators, this decision is made by the Chairman. If it is decided that the issue has been validly raised, the conciliator or arbitrator to whom the decision relates shall be replaced in accordance with the provisions of Section 2 of Chapter III or Section 2 of Chapter IV.

CHAPTER VI. COSTS ASSOCIATED WITH THE PROCEEDINGS

Article 59

The fees payable by Parties for the use of the Center's structures shall be determined by the Secretary General in accordance with provisions approved by the Administrative Council.

Article 60

1. Each Commission and each Court shall determine the fees and expenses of its members within the limits fixed from time to time by the Governing Body and after consultation with the Secretary General.

2. Nothing in paragraph 1 of this article prevents the Parties from agreeing in advance with the relevant Commission or Court on the fees and expenses of their members.

Article 61

1. In the case of a conciliation procedure, the fees and expenses of the members of the Commission, as well as fees for the use of the Center’s structures, are paid equally by the Parties. Each Party shall bear all other costs arising in connection with such proceedings.

2. In the case of arbitration proceedings, the Court, unless the Parties otherwise agree, assesses the costs incurred by the Parties in connection with such proceedings and decides how and by whom these costs, the fees and expenses of the members of the Court, and fees for the use of structures should be paid Center. This decision forms part of the arbitration award.

CHAPTER VII. VENUE OF PROCEEDINGS

Article 62

Conciliation and arbitration procedures are carried out at the location of the Center, with the exceptions provided for in this chapter.

Article 63

By agreement between the Parties, conciliation and arbitration procedures may be carried out:

a) at the seat of the Permanent Court of Arbitration or any other appropriate institution, private or public, with which the Center may enter into an agreement for these purposes; or

b) in any other place approved by the Commission or the Court after consultation with the Secretary General.

CHAPTER VIII. DISPUTES BETWEEN CONTRACTING STATES

Article 64

Any dispute arising between Contracting States concerning the interpretation or application of this Convention and not settled by negotiation shall be referred to the International Court of Justice on the application of any of the Parties to such dispute, unless such States agree on a different mode of settlement.

CHAPTER IX. AMENDMENTS

Article 65

Any Contracting State may propose amendments to this Convention. The text of the proposed amendment shall be communicated to the Secretary General at least 90 days before the meeting of the Governing Body at which such amendment is to be considered, and shall be immediately communicated by him to all members of the Governing Body.

Article 66

1. If the Governing Body adopts a proposed amendment by a two-thirds majority vote of its members, it shall be submitted to all Contracting States for ratification, acceptance or approval. Each amendment shall enter into force 30 days after the depositary of this Convention has given notice to the Contracting States that all Contracting States have ratified, accepted or approved the amendment.

2. No amendment shall affect the rights and obligations under this Convention of any Contracting State or any of its subdivisions or agencies or of any person or entity of such State relating to consent to the jurisdiction of the Center given before the date on which the amendment comes into force.

CHAPTER X. FINAL PROVISIONS

Article 67

This Convention is open for signature on behalf of the member states of the Bank. It is also open to signature on behalf of any other state which is a party to the Statute of the International Court of Justice and which the Governing Body, by a vote of two-thirds of its members, has invited to sign this Convention.

Article 68

1. This Convention is subject to ratification, acceptance or approval by the signatory States in accordance with their respective constitutional procedures.

2. This Convention shall enter into force 30 days after the date of deposit of the twentieth instrument of ratification, acceptance or approval. For each State which deposits its instrument of ratification, acceptance or approval thereafter, it shall enter into force 30 days after the date of its deposit.

Article 69

Each Contracting State shall take such legislative or other measures as may be necessary to give effect to the provisions of this Convention in its territory.

Article 70

This Convention shall apply to all territories for the international relations of which a Contracting State is responsible, except those territories the exclusion of which such State shall notify in writing to the depositary of this Convention, either at the time of ratification, acceptance or approval or subsequently.

Article 71

Any Contracting State may denounce this Convention by written notification to the depositary of this Convention. The denunciation shall take effect six months after receipt of such notification.

Article 72

A notification given by a Contracting State under Articles 70 or 71 shall not affect the rights and obligations under this Convention of that State or any of its subdivisions or agencies or of any person or entity of that State arising from consent to the jurisdiction of the Center given by any of them until such notification is received by the depositary.

Article 73

Instruments of ratification or acceptance or approval of this Convention and amendments thereto shall be deposited with the Bank, which shall act as depositary of this Convention. The Depositary shall transmit certified copies of this Convention to the member states of the Bank and to any other state invited to sign the Convention.

Article 74

The Depositary shall register this Convention with the Secretariat of the United Nations in accordance with Article 102 of the Charter of the United Nations and the Rules adopted thereunder by the General Assembly.

Article 75

The Depositary shall notify all States signatories to this Convention of the following:

a) signature in accordance with Article 67;

(b) the deposit of instruments of ratification, acceptance or approval in accordance with Article 73;

c) the date of entry into force of the Convention in accordance with Article 68;

d) exceptions from territorial application under Article 70;

e) the date of entry into force of any amendments to this Convention in accordance with Article 66; And

f) denunciations in accordance with Article 71.

Done at Washington, in the English, French and Spanish languages, all three texts being equally authentic, in a single copy which remains in the archives of the International Bank for Reconstruction and Development, which by its signature below has expressed its consent to perform the functions vested in it under of this Convention.

ICSID activities

Let us consider in this context the system of the International Center for the Settlement of Investment Disputes (ICSID), which has become the most significant of such systems created so far.

ICSID provides settlement of investment disputes between governments and foreign private investors, either through settlement of differences or through arbitration proceedings. It was created in 1966 in accordance with the Washington Convention on the Settlement of Investment Disputes between States and Nationals of Other States, which, as of April 2006, had been ratified by 143 countries.

1) the rules defining the competence of the ICSID, or, using the terminology of the Convention, the Center for the Resolution of Investment Disputes;

2) provisions governing the procedure for conducting the conciliation procedure;

3) norms regulating the procedure for executing decisions of the Center.

Appeal to ICSID is done on a voluntary basis, but, having agreed to arbitration, neither party can unilaterally refuse it.

Primary purpose of ICSID is to create the necessary conditions for reconciliation and arbitration of international investment disputes.

ICSID was created as an impartial international body providing a means of resolving legal disputes between parties, through arbitration or conciliation procedures.

It should be noted that four of these 32 arbitral awards were overturned under the Art. 52 of the Convention, according to which any party may, by written application addressed to the Secretary-General of the United Nations, request the setting aside of an arbitral award for one or more of the following reasons: a) the court was improperly constituted; b) the court clearly exceeded its powers; c) there has been corruption of any member of the court; d) there has been a serious departure from any essential rule of procedure; e) the arbitral award does not set out the considerations on which it is based. In accordance with the Centre's procedure, upon receipt of such a request, the Chairman shall promptly appoint from among the persons on the list of arbitrators an ad hoc committee of three persons which may stay the execution of the award pending consideration of such request. In case of cancellation of the arbitration award, the dispute, at the request of either party, is transferred to a new court Farkhutdinov I.Z. International investment law: theory and practice of application. M.: Wolters Kluwer, 2005 p. 120.

Today, ICSID is the leading international institution involved in the settlement of international investment disputes.

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The law-making nature of the activities of lawyers received formal recognition during the era of the Principate (the first three centuries AD). With the transition to the principate, the law-making role of lawyers not only does not weaken, but receives further development...

Constitutional law of Great Britain: features of the British Parliament. Ministerial regime

Parliament is the highest legislative body of the country. Supreme power in the field of legislation is entrusted to parliament as a whole. This is the “queen in parliament,” that is, the queen and the two houses of parliament. This means that the bills...

Constitutional right to information in Russia

Continuing the theme of the relationship between information and politics, it is necessary, first of all, to give such a concept as information activity. Information activity is considered to be all human activity associated with the processes of obtaining...

Anatoly Fedorovich Koni (1844-1927) occupies a special place among the great Russian judicial orators, whose activity dates back to the middle and end of the 19th century. He began his path in society in the “era of reforms” of the 60s of the 19th century...

The concept of the legal profession and its functions

Advocacy, which is not a business activity, is qualified legal assistance provided on a professional basis by persons who have received the status of lawyer in the prescribed manner...

Entrepreneurial activity as the basis of a market economy

By virtue of paragraph 1 of Art. 34 of the Constitution of the Russian Federation, everyone has the right to freely use their abilities and property for entrepreneurial and other economic activities not prohibited by law Constitution of the Russian Federation" dated 12.12...

Application of law

Religious organizations

To achieve the special purpose of creation, these subjects of law carry out religious activities that have their own specifics and differ from other types of activities...

Economic and trading activities

Makeup. Skin and hair care. Manicure

ICSID activities

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