Analysis of the materials of September 30rd 2009 panel arranged by the SU - HSE Legal Research Institute and the Faculty of Law. Representatives of the RF Supreme Court, Moscow Bar Chamber, RF Ministry of Justice participated in the debates.
Strong distinction between contractual claims and claims arising out of bilateral investment treaties (BIT) exists in modern investment disputes resolution. This distinction has a practical importance when the competence of international tribunal to decide the claim is in question, because investment contract and BIT contain different dispute resolution provisions. The common mechanism of dealing with this conflict is introduction of umbrella clause in the particular BIT. Umbrella clause is the clause lifting the breach of contract between investor and host state to the level of breach of BIT between this state and investor’s home country. The role of umbrella clauses in international investment law and the issue of competence conflicts arising of them are analyzed in this article.
Nowadays, a lot of leading economists link the future of our country with the involvement of a large scale of foreign investment in Russian economy, which pursues long-term goal of a civilized society in Russia, which characterized by a high standard of living. This problem can be solved, but first it is necessary to examine the specific of the state in which foreign investment attracts, to consider the economic and legal framework of Russia. At the same time, great attention should be paid to the last of these, because there is a kind of paradox in this area: the strongest tool to attract foreign capital at the same time is the main reason that keeps investors from large investments. Foreign investment is a capital funds which have been taken out of one country and invested in various types of business activities abroad in order to derive business profits or interest. Foreign investments may take a variety of forms. This article is focus on such forms of foreign investment as a concession agreements and production sharing agreement.