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investor-state disputes | ISDS

Investor-state dispute settlement (ISDS) refers to a way of handling conflicts under international investment agreements whereby companies from one party are allowed to sue the government of another party. This means they can file a complaint and seek compensation for damages. Many BITs and investment chapters of FTAs allow for this if the investor’s expectation of a profit has been negatively affected by some action that the host government took, such as changing a policy. The dispute is normally handled not in a public court but through a private abritration panel. The usual venues where these proceedings take place are the International Centre for Settlement of Investment Disputes (World Bank), the International Chamber of Commerce, the United Nations Commission on International Trade Law or the International Court of Justice.

ISDS is a hot topic right now because it is being challenged very strongly by concerned citizens in the context of the EU-US TTIP negotiations, the TransPacific Partnership talks and the CETA deal between Canada and the EU.

Canada’s Alamos exits Türkiye, sells 3 gold mines to Nurol for $470M
17-Sep-2025 Türkiye Today
As part of the agreement, arbitration proceedings brought by Alamos’s Netherlands subsidiaries against the Republic of Türkiye under the Netherlands–Türkiye Bilateral Investment Treaty will remain suspended.
Uruguay paid US$64 million after Luxembourg account seizure not disclosed by previous government
9-Sep-2025 MercoPress
The Uruguayan state had its bank accounts in Luxembourg frozen for several months due to non-payment of an arbitration award over the closure of national airline Pluna.
Kazakhstan wins arbitration case, escapes $34-billion claim
8-Sep-2025 Eurasianet
The Permanent Court of Arbitration in the Hague has sided with Kazakhstan in a case brought by a Kyrgyz entrepreneur claiming over $34 billion in damages. Instead, the businessman, Yevgeny Belavin, now must pay all of Kazakhstan’s substantial legal fees, as well as court costs.
The French state before an arbitration tribunal over “Montagne d’Or”
4-Sep-2025 Veblen Institute
The French state is being sued by two Russian investment companies (controlled by a sanctioned oligarch), in connection with the “Montagne d’Or” mining megaproject in French Guiana.
Record number of corporate lawsuits target climate action in controversial tribunal
3-Sep-2025 Follow The Money
Fossil fuel and mining companies are ramping up lawsuits against governments over environmental rules, using a controversial arbitration mechanism that critics say is skewed in industry’s favour and jeopardises global climate action.
Annulment insurance and disposal of Italian assets
3-Sep-2025 Rockhopper
Rockhopper has drafted new request for arbitration against Italy and expects to submit it in the coming weeks.
Key points in Shell’s arbitration case against Bolivia
1-Sep-2025 Linkedin
On August 5, 2025, BG Overseas Limited, a subsidiary of Shell, informed Bolivia of a dispute involving its subsidiary, Shell Bolivia Corporation, as per Article 8 of the Bilateral Investment Treaty signed with the United Kingdom.
Te Taiao and climate crisis
1-Sep-2025 Ngā Toki Whakarururanga
Recent agreements (negotiated in secret) also guarantee foreign corporations the rights to lobby against new laws in the name of “transparency”; guaranteed rights that iwi and hapū don’t have.
Britain sued in ‘corporate court’ over quashing of coal mine in Cumbria
1-Sep-2025 Global Justice Now
Lawsuit is the first known case under Investor State Dispute Settlement (ISDS) against the UK since 2006 proceeding to arbitration, and the first ISDS case brought against it in response to a climate policy.
S. Korea pays compensation to US hedge fund Mason
30-Jul-2025 Yonhap
South Korea’s government has paid US$54 million to US hedge fund Mason Capital following an investor-state dispute settlement (ISDS) ruling.
Türkiye wins $30M arbitration case over Italian Enel’s revoked solar license
28-Jul-2025 Türkiye Today
Türkiye has prevailed in an international arbitration case brought by Italian energy giant Enel S.p.A. over the 2022 cancellation of a pre-license for a solar power plant in the southwestern province of Isparta, the country’s energy regulator announced on Friday.
Mounting corporate pressure on Honduras threatens community rights
25-Jul-2025 Mongabay
New data on foreign arbitration claims in Honduras reveal that the lawsuits filed by corporations against the country now total $19.4 billion in legal claims, equivalent to roughly 53% of Honduras’ GDP in 2024.
Canada eyes investment pact as Ethiopia opens $169bn economy
25-Jul-2025 Finance in Africa
As Ethiopia opens its doors to foreign investment, Canada is positioning itself to be among the first in line, with legal safeguards in place.
The 14th Asian Business Summit joint statement
25-Jul-2025 Keidanren
At the 14th Asian Business Summit in Manila, 12 economic business stressed their interests in strengthening FTAs, promoting green transformation with diverse energy pathways, fostering innovation driven by AI and startups, and developing human resources to boost regional competitiveness. The summit advocates maintaining a rules-based international economic order and reforming the WTO.
Karapetyan has won an international lawsuit against the Armenian government
24-Jul-2025 Oreanda
Businessman Samvel Karapetyan has won an international arbitration case against the Armenian government in connection with attempts by the authorities to nationalize his company, Electric Grids of Armenia.
Canada needs to reset its free trade plans with Ecuador
22-Jul-2025 The Hill Times
Human rights, not corporate rights, should drive international trade relations under this new government.
One small country, nearly $20 billion in corporate claims
21-Jul-2025 Inside Climate News
Using a secretive arbitration system, multinational companies could bankrupt Honduras, one of the poorest countries in the world. A recent advisory opinion from a human-rights court calls for an overhaul.
Lithuania and Veolia reach €38m settlement to end decade-long legal disputes
18-Jul-2025 LRT
Lithuania and French energy group Veolia have reached a €35 million settlement that ends most of their decade-long legal disputes over municipal heating contracts, the Lithuanian Energy Ministry announced .
South Korea wins UK appeal over arbitration ruling in Samsung merger case
18-Jul-2025 Reuters
South Korea won its latest appeal in its dispute with US hedge fund Elliott over the 2015 merger of two affiliates of Samsung, shortly after the electronics group’s Chairman Jay Y. Lee was cleared by South Korea’s top court.
EU refers Hungary to the highest court
18-Jul-2025 Kosova Press
The European Commission has referred Hungary to the Court of Justice of the European Union for refusing to comply with a key European Union ruling on investor-state arbitration under the Energy Charter Treaty.