This chapter analyses the concept of indirect expropriation in international investment agreements. In particular, it focuses on the distinction between a compensable indirect expropriation and a non-compensable general regulation. The chapter begins by presenting the uncertainties surrounding the scope of indirect expropriation, which are reflected in partially contradicting decisions of arbitral tribunals. In order to provide some guidance for the interpretation of expropriation provisions in international investment agreements, it analyses the issue as it appears under the European...

This chapter analyses the concept of indirect expropriation in international investment agreements. In particular, it focuses on the distinction between a compensable indirect expropriation and a non-compensable general regulation. The chapter begins by presenting the uncertainties surrounding the scope of indirect expropriation, which are reflected in partially contradicting decisions of arbitral tribunals. In order to provide some guidance for the interpretation of expropriation provisions in international investment agreements, it analyses the issue as it appears under the European Convention on Human Rights, US constitutional law, German constitutional law, and the law of the European Union. Finally, the approaches found are compared and common principles are extracted that can be used to interpret expropriation provisions in international investment agreements.