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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.

Colombia slams international trade rules that punish states for climate action
20-Nov-2025 Mongabay
Colombian Environment Minister Irene Vélez Torres has called for reform of international arbitration tribunals, saying they’re “one of the greatest obstacles” to the energy transition and favor corporate interests over sovereignty.
S. Korea wins annulment in investor dispute over Lone Star’s sale of local bank
19-Nov-2025 Yonhap
An international arbitration body for investor–state dispute settlement has ruled in favor of South Korea in its challenge to the award for private equity fund Lone Star over its 2012 sale of a local bank.
EU Commission pledges to protect Belgium over Russian assets
18-Nov-2025 Politico
Belgium fears that using the assets would leave it exposed to Russian legal action. This is a major concern for Belgium, which has a bilateral investment treaty with Russia, first signed in 1989.
‘COP30 must declare an end to ISDS’, delegates told
18-Nov-2025 Global Justice Now
Campaigners launched a new initiative to phase out ‘corporate courts’ which are now a “major impediment to climate action.”
K-Electric: Govt facing arbitration threat from Saudi, Kuwaiti investors
17-Nov-2025 Business Recorder
The Government of Pakistan is facing a potential threat of arbitration from Saudi and Kuwaiti investors, key shareholders in K-Electric, who have already served a USD2 billion notice on Islamabad.
Tribunal members named in €14bn Fridman claim against Luxembourg
17-Nov-2025 The Luxembourg Times
No hearing date or location set in Russian tycoon Mikhail Fridman’s arbitration case over assets frozen by the Grand Duchy’s government.
The curious case of S Alam and our investment treaty regime
14-Nov-2025 The Daily Star
The S Alam arbitration should therefore be seen not simply as a legal challenge but as a policy signal.
The constitutional shield: how Colombia’s judiciary shapes investment treaties through joint interpretation
12-Nov-2025 South Centre
This policy brief examines an innovative judicial approach by the Colombian Constitutional Court in response to an increase in investor-state dispute settlement (ISDS) claims.
Defunding the Amazon: mapping ISDS risk from the oil and gas sector in amazonian countries
12-Nov-2025 Global Development Policy Center
The protection of the Amazon is a central theme of the COP30 in Belém, Brazil. However, efforts to ensure that the Amazon is defended are at risk of instead being defunded—by investor-state dispute settlement.
Sarama files memorial in US$242M damages claim against Burkina Faso
11-Nov-2025 Acces Newswire
Sarama Resources Ltd. ("Sarama" or the "Company") (TSX-V:SWA)(ASX:SRR) announces that it has filed its written Memorial (the "Memorial") detailing the Company’s claim against the Government of Burkina Faso ("GoBF") as well as damages for the sum of US$242 million, plus interest.
Blue gold: how a Ghana mine’s troubles hit workers and UK politicians – and could cost British taxpayers
10-Nov-2025 The Guardian
Exclusive: London-based firm with heavyweight backing received £3.3m loan from Treasury fund for start-ups.
Pressure mounts on UK to join coordinated exit from secretive corporate court system, during COP30
7-Nov-2025 Global Justice Now
Civil society coalition will hold press conference and side event at COP30 to urge governments to go ‘ISDS free’ to protect sovereign climate policy
Petrogas sues the Netherlands over fiscal measures meant to protect the public interest
5-Nov-2025 SOMO
SOMO and Both ENDS strongly condemn the newly revealed investor-state dispute settlement case filed by Petrogas, an Omani oil and gas company operating two shallow-water gas fields in the Dutch North Sea, against the Netherlands.
US CEOs warn Mexico reform may risk investment, urge ISDS return
5-Nov-2025 Mexico Business News
The CEOs also called on the US Trade Representative to restore the Investor-State Dispute Settlement (ISDS) mechanism under the USMCA, arguing it would allow complaints to be resolved by neutral arbiters.
Expanding the legal toolkit: the EU’s new tools against sanctioned Russian investors
5-Nov-2025 Freshfields
These new provisions expand the legal tools available to EU Member States to resist and deter investor-State dispute settlement (ISDS) proceedings brought by Russian investors in connection to measures imposed within the EU’s sanctions regime against Russia.
Dutch Supreme Court rejects Russia’s final appeal in $50B Yukos case
5-Nov-2025 AP
The Dutch Supreme Court on Friday rejected a final appeal by Russia against a $50 billion arbitration award to former shareholders of Russian oil giant Yukos, who claimed Moscow deliberately bankrupted the company more than 20 years ago.
Resource disputes between investors and states hit 10-year high
3-Nov-2025 Reuters
Disagreements between governments and investors over resources are at a 10-year high, law firm DLA Piper said, driven by resource nationalism and growing competition between the US and China for critical minerals.
Climate and Environmental Governance: International investment rules can undermine environmental and climate protection
3-Nov-2025 The Edge Malaysia
The investor-state dispute settlement system, with its roots in colonialism and extractivism, is not fit for purpose in the 21st century because it prioritises the interests of foreign investors over the rights of states, human rights and the environment.
Panama wins canal expansion arbitration against Spanish company
3-Nov-2025 RTL
Panama’s government won a lawsuit against Spanish company Sacyr, officials said, after the firm claimed it was owed around $2.3 billion for its work expanding the Panama Canal.
Romania withdraws from the Energy Charter Treaty
30-Oct-2025 Energy World
The Government has approved a draft law approving Romania’s withdrawal from the Energy Charter Treaty.