Protection of Investors Rights in Expropriation of Their Property by State

This work is devoted to reactive ways to protect the rights of foreign investors from expropriation in international investment law. In the 21st century, when international investment is the main engine of the global economy, it becomes even more important to create conditions that ensure the efficient functioning of the investment movement, which is one of the most important functions of the state and is carried out by creating legal guarantees for foreign investors. The main guarantee is the protection of foreign investment from expropriation and the payment of adequate compensation, if the expropriation took place. In this paper, definitions were given to the basic concepts of international investment law, namely foreign investment and a foreign investor, a classification was given of the criteria for determining the nationality of individuals and legal entities in international investment law, the definition of the concept of “expropriation” was given, the question of the legality of expropriation and separation of direct and indirect expropriation was given, the issue of compensation for the expropriation of investments was analyzed. In the work, the main reactive ways of protecting the rights of investors regarding the expropriation of foreign investments were identified and studied, namely: international commercial arbitration and investment arbitration. The possibility of transferring the dispute to international commercial arbitration was considered through the prism of the recent arbitration reform in the Russian Federation.