Are Russian countersanctions likely to prompt investment treaty claims

A large number of countries have denounced Russia's invasion of Ukraine and imposed unprecedented sanctions against it in condemnation of its actions. Our Sanctions Tracker provides an up-to-date summary of the measures imposed so far.

By way of retaliation, Russia has threatened – and in some cases already implemented – a number of countersanctions aimed at companies from those countries it considers "unfriendly". These include requiring certain purchasers of Russian gas to pay in rubles, and banning exports to individuals and corporates from "unfriendly" countries. Those with investments in Russia are weighing up their options as to what to do next. 

In this article we consider the extent to which foreign investors might seek to rely on the protections afforded to them in Russia's international investment treaties if Russia acts on its threatened countersanctions. We also explore some of the practical challenges that parties looking to pursue investment treaty claims against Russia are likely to face.

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