Investment Treaty Protection is one of the most complex and specialized fields of international law. It relies on Bilateral Investment Treaties (BITs) signed between states and multilateral conventions that create a safety umbrella for foreign investors. When investing in Georgia, a foreign businessperson is protected not only by local legislation but also by international legal instruments that limit state arbitrariness. These mechanisms are particularly important when actions by state bodies (e.g., unlawful revocation of a license, discriminatory tax treatment, or expropriation) cause damage to the investment.
Legal.ge provides access to highly qualified specialists in international arbitration and investment law. This service is intended for major investors facing administrative barriers or rights violations by the state. The service includes:
- Analysis of BITs: Determining whether a bilateral treaty between Georgia and the investor's home country protects the specific investor.
- Fair and Equitable Treatment (FET) Claims: Enforcing the state's obligation not to radically alter the legislative environment to the investor's detriment.
- Protection from Expropriation: Demanding adequate compensation in cases of direct or indirect (creeping) expropriation.
- Investor-State Dispute Settlement (ISDS): Conducting proceedings at the International Centre for Settlement of Investment Disputes (ICSID) or other arbitration institutions.
- Negotiations with the State: Engaging in negotiations with the Georgian government to reach a compromise solution before escalating the dispute.
In real life, these mechanisms are triggered when the local court system fails to provide effective protection. For example, if a foreign energy company built a hydropower plant based on state guarantees, and the government later changed tariffs or revoked a permit, this could be considered a breach of the investment treaty. Similarly, if tax authorities selectively audit and fine only a foreign company, this may constitute discrimination and a violation of a BIT. In such cases, international law gives the investor the right to bypass local courts and appeal directly to international arbitration.
Georgia has signed Bilateral Investment Treaties (BITs) with many countries worldwide (USA, UK, Germany, Turkey, etc.). Additionally, Georgia is a member of the "Energy Charter Treaty" (ECT) and the "Washington Convention on the Settlement of Investment Disputes" (ICSID Convention). These documents create a supranational legal framework. The "Law of Georgia on Promotion and Guarantees of Investment Activities" also recognizes the supremacy of international arbitration awards.
The process is quite complex and formalized. Initially, the lawyer prepares a detailed Legal Opinion regarding the existence of a breach. Then, in accordance with the treaty requirements, an official Notice of Dispute is sent, initiating a mandatory "Cooling-off period" (usually 3-6 months). If no agreement is reached during this period, the lawyer prepares a claim for international arbitration. This process requires deep knowledge not only of jurisprudence but also of international politics and economics.
Specialists presented on Legal.ge are leaders in this niche and elite field. They have experience working on both the state and investor sides, giving them the unique ability to correctly assess the prospects of a dispute. Utilizing international investment protection mechanisms is a powerful lever to safeguard your business, and our platform will help you find the professionals who can effectively wield this lever.
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