April 15, 2022
Since the Russian invasion of Ukraine and imposition of sanctions, many foreign companies and investors have sought to divest from and leave Russia. However, Russia has proposed a bill to nationalize the operations of companies that leave, raising the possibility of investor-state disputes and ISDS claims. Kobre & Kim’s Jef Klazen, who focuses on international judgment enforcement and asset recovery against sovereign entities, examined the unique issues presented by this situation during a panel hosted by Columbia Law School on April 12, 2022.
During the panel, Mr. Klazen was joined by David Pinsky of Covington & Burling, Scott Vesel of Three Crowns and Tobias Vollmer of Raedas. Together, they discussed how the 60 bilateral investment treaties (BITs) Russia has signed may be triggered and used by investors; possible actions and defenses Russia may raise; and the possibility of a single post-conflict tribunal on losses to foreign investors.
The panel also discussed enforcement issues, including strategies to address possible Russian evasion; the possibility creditors can pierce the corporate veil of Russian state-owned entities or beat back sovereign immunity; how the widespread sanctions and asset freezes might help investors; and lessons to be drawn from prior instances of states confronted with a sudden influx of investor-state dispute settlement claims.