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International Investment Agreements

Can I use English law for a contract in Georgia?

Yes, Georgian law allows parties to choose foreign law (e.g., English Law) for private commercial contracts, which is common in large international deals.

What is ICSID arbitration?

ICSID is the World Bank's arbitration center for disputes between investors and states. Georgia is a member, meaning awards are directly enforceable here.

Does a stabilization clause guarantee tax rates?

Yes, if properly drafted and agreed upon with the government, a stabilization clause can "freeze" the tax regime for the duration of the project.

What if the government nationalizes my asset?

International law and Georgian law prohibit expropriation without prompt, adequate, and effective compensation. You would be entitled to the market value of the asset.

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International Investment Agreements: Global Protection and Strategic Partnership

International Investment Agreements (IIAs) serve as the legal foundation for major cross-border capital investments. These can be agreements between an investor and the state (e.g., regarding concessions or public-private partnerships) or large B2B deals between international partners. Such agreements regulate not only financial terms but also mechanisms for protecting investor rights, dispute resolution methods (international arbitration), and stabilization clauses that protect the business from legislative changes. Georgia has signed numerous Bilateral Investment Treaties (BITs), providing additional guarantees to investors. Qualified legal services ensure that these agreements are fair, enforceable, and maximally protect the investor's interests in the long term.

What Does This Service Cover?

International investment agreement services include:

  • Agreement Preparation and Drafting: Drafting complex investment contracts (Joint Venture Agreements, Shareholder Agreements) according to international standards.
  • Negotiations: Representing investor interests at the negotiation table with the government or foreign partners.
  • BIT Analysis: Analyzing existing Bilateral Investment Treaties between Georgia and the investor's country and leveraging them for protection strategy.
  • Arbitration Clauses: Drafting effective dispute resolution mechanisms (ICSID, ICC, UNCITRAL) into the contract.
  • Stabilization Clauses: Including terms in state contracts that protect the investor from deterioration of the tax or regulatory regime.
  • Compliance Monitoring: Legal oversight of the fulfillment of contract terms.

Common Scenarios When You Need This Service

This service is critical for the following types of deals:

  • Infrastructure Projects (BOT/BOOT): Construction of roads, ports, or power plants where the investor builds, operates, and then transfers the facility to the state.
  • International Joint Ventures (JV): Merging a Georgian and a foreign company to implement a large project.
  • Privatization Deals: Purchasing state property with privatization conditions and obligations.
  • Disputes with the State: When the state breaches an investment agreement and preparation for international arbitration is needed.

Georgian Legal Framework

The field is regulated by the Law of Georgia on Promotion and Guarantees of Investment Activity and the Law on Public-Private Partnerships. Crucial are international treaties—Bilateral Investment Treaties (BITs)—to which Georgia is a party. Regarding dispute resolution, the Law on Arbitration and the 1958 New York Convention apply, ensuring the recognition and enforcement of foreign arbitral awards in Georgia.

Process of Service Delivery

The process begins with analyzing the deal structure. Lawyers determine which jurisdiction's law should apply (often English law). Then drafting and negotiation rounds take place. In the case of a contract with the state, the process may involve preparing a government decree. After signing, lawyers ensure the registration of the contract (if necessary) and monitoring the enforcement of its terms.

Why Legal.ge?

International investment agreements require specific knowledge in public and private international law. Legal.ge gives you access to experts experienced in negotiations with governments and transnational corporations. The specialists on our platform will help you create a strong legal shield for your investment and avoid costly disputes in the future.

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Specialists for this service

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