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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.

Eni confirms deal with Nigeria to split OPL 245 oilfield into four licences
10-Mar-2026 CNBC Africa
The agreement includes the “mutually satisfactory settlement” of all claims related to OPL 245 and the termination of an international arbitration procedure, the Italian energy major said.
Fast-tracking the UAE-Ecuador BIT: Executive decrees, constitutional limits, and democratic resistance to ISDS
6-Mar-2026 CCSI
What makes this BIT remarkable is how it is being forced through despite clear constitutional text and two recent referenda rejecting ISDS.
AFTINET submission to reviews of ISDS in agreements with Egypt and Eastern European countries
5-Mar-2026 AFTINET
The submission recommends that Bilateral Investment agreements with Hungary, Poland, Czechia, Lithuania and Romania should be terminated without sunset clauses, which preserve existing investor rights to sue after agreements are terminated.
Lupaka Gold sues Peru in the US to enforce nearly US$70mn ICSID award
5-Mar-2026 BNamericas
The Canadian company Lupaka Gold sued Peru before the District Court of Columbia in the United States to enforce an ICSID arbitration award from June 2025 for around US$69 million.
Orca’s ICSID case and special dividend put Tanzania’s gas sector in focus
28-Feb-2026 The Citizen
Orca announced three arbitrations at the CSID: one under the Mauritius–Tanzania Bilateral Investment Treaty, and two under the PSA and GA. The claims-valued at roughly US$1.2 billion-allege Tanzania failed to extend the development licence, prolonged the “Protected Gas” regime beyond its contractual term.
Vinci Airports to operate Santiago SCL until 2038 following settlement with Chilean government
27-Feb-2026 Aviacionline
Following a favorable arbitration ruling, Nuevo Pudahuel has secured a 36-month extension to its contract at Santiago Airport, ending a multi-million-dollar dispute with Chile.
Honduran and international allies issue statement denouncing Honduras’ return to ICSID
26-Feb-2026 Terra Justa
Honduran and international civil society organizations that defend individual and collective human rights reject the new Honduran government’s decision to rejoin the International Centre for Settlement of Investment Disputes (ICSID).
Lukoil unit threatens legal action against Bulgaria over special administration
26-Feb-2026 SeeNews
Swiss-based Litasco, the international supply and trading arm of Russia’s Lukoil, may initiate arbitration proceedings against Bulgaria after the country transferred the management of Lukoil’s local subsidiaries to a special administrator.
Oil majors running Kazakh Kashagan field file arbitration over $4.6 billion fine
25-Feb-2026 Reuters
Shell, TotalEnergies, Eni, Exxon and other shareholders in Kazakhstan’s Kashagan oilfield have filed an arbitration claim against a 2023 environmental fine worth around $4.6 billion
To diversify trade, ditch the ideological baggage
23-Feb-2026 The Hill Times
Canada’s trade diversification policy amounts to signing more old school free trade and investment deals as quickly, and with as little debate, as possible.
S. Korea wins lawsuit seeking to revoke arbitration ruling in Elliott case
23-Feb-2026 Yonhap
South Korea has won a case filed at a British court seeking to reverse an international tribunal court’s order to pay more than US$100 million in damages to the US hedge fund Elliott Investment Management.
Mozambique and UAE discuss CEPA, investment protection, bilateral business forum and tourism MoU
23-Feb-2026 Club of Mozambique
During the meeting, the parties analysed the current status of negotiations on the Comprehensive Economic Partnership Agreement (CEPA) and discussed instruments for investment protection.
From COP30 to COP31: Opportunities to advance global ISDS reform
19-Feb-2026 E3G
Fossil fuel investors are increasingly using ISDS to challenge climate mitigation measures and seek significant compensation. This legal risk can delay climate ambition and drain public finances needed for the transition.
US investors escalate legal fight with Seoul over Coupang
13-Feb-2026 The Korea Herald
A growing group of US investors in Coupang Inc. are intensifying a legal dispute with the Korean government over what they call discriminatory action against the company following its massive data breach last year, adding to broader Korea-US tensions.
CK Hutchison launches arbitration over Panama Canal ports contract ruling
13-Feb-2026 Reuters
Hong Kong’s CK Hutchison said its Panama Ports Company unit has started international arbitration proceedings against Panama after the country’s top court annulled its licences to operate two Panama Canal ports
Billionaire former Russian oligarch seeks $350 million from Canada at international tribunal
9-Feb-2026 National Post
Igor Makarov has already waged two unsuccessful Canadian court battles in an attempt to be removed from the sanctions list over Russia’s war on Ukraine.
Australia’s Berkeley Energia claims $1.25 billion from Spain over uranium dispute
6-Feb-2026 Reuters
In this investment dispute, Berkeley claims that Spain’s actions against its Spanish subsidiary, Berkeley Minera España, and the SalamancAustralia’s Berkeley Energia filed a memorial of claim for about $1.25 billion against Spain at the World Bank’s arbitration tribunal, up from a previous request, over the blocked Salamanca uranium project.
EU challenges 16 Member States over stalled energy charter withdrawals
4-Feb-2026 The Brussels Times
The European Commission has launched new legal steps against several EU countries over energy-related obligations, including continued participation in the Energy Charter Treaty.
Indonesia joins Permanent Court of Arbitration as 127th member
4-Feb-2026 RRI
Indonesia’s membership opens new opportunities to access international dispute resolution mechanisms, strengthen its role in shaping international law, and nominate Indonesian legal experts as arbitrators within the PCA.
ISDS vs. the climate: How a colonial-era investment mechanism jeopardises a just transition
30-Jan-2026 CAN Europe
A little-known yet powerful legal mechanism is undermining the energy transition, by enabling fossil fuel companies to sue countries that take climate action.