Ukraine terminates the agreement on the promotion and mutual protection of investments between Ukraine and Russia

Ukraine has taken an important step by terminating the agreement on the promotion and mutual protection of investments between Ukraine and Russia. This decision was made by the Verkhovna Rada at its plenary session on August 10, with the support of 274 MPs. The details of this step were disclosed by MP Yaroslav Zheleznyak of the Voice political party.

The decision comes into force the day after its publication.

The intergovernmental agreement on the promotion and mutual protection of investments was signed in November 1998 and ratified by the Verkhovna Rada in December 1999. This agreement established standards for the treatment of investors and their investments, as well as mechanisms for resolving investment-related conflicts.

The reason for the termination of this agreement was a fundamental change of circumstances that occurred on the basis of the Vienna Convention on the Law of Treaties.

The agreement contains a number of important provisions, including a ban on expropriation or nationalization of investments made in the territory of the other party. However, since the outbreak of Russia's war against Ukraine in 2014, Russia has repeatedly violated these provisions.

This agreement provided Ukraine with an opportunity to reach a fair solution in cases of violation of investors' rights. For example, thanks to this decision, Naftogaz of Ukraine is able to defend its rights in court to compensation of $5 billion for assets that were confiscated in the occupied Crimea.