Russian investor-state claims against Western countries are on the rise

There is a growing trend of Russian (or former Russian) investors commencing investor-state proceedings against European and North American countries. These disputes relate to alleged expropriation or significant impairment of investors’ assets by the relevant states under the pretext of unilateral coercive measures (sanctions) or other confiscatory measures.

To that extent, earlier this autumn, four Russian non-sanctioned individuals have filed notices of dispute against Belgium under the USSR-Belgium/Luxemburg 1989 bilateral investment treaty (BIT). The claims pertain to the investors’ assets being frozen at Euroclear, the Belgian central security depositary (CSD). The assets have been frozen as a result of the EU imposing sanctions against the National Settlement Depository, the Russian CSD, through which the assets are effectively held.

Further, on 13 October 2025, a major Russian oil company has sent a notice of dispute to Ukraine under the Russia-Ukraine 1998 BIT. The claim centres on various state measures, including alleged illegal expropriation of the company’s assets by the state and other breaches of the treaty. The damages sought are “estimated to run into hundreds of millions of US dollars”.

Finally, it has been reported this month that a former Russian investor has filed a notice of dispute against Canada under the Moldova-Canada 2018 BIT. In the notice, he alleges that his assets were expropriated following Canada’s decision to maintain him on the country’s sanctions list. The investor seeks damages to the tune of US$250 million.

Said proceedings illustrate the growing willingness of the Russian (or former Russian) investors to escalate their brewing disputes to the next level. In this vein, we should expect more claims to follow the above tendency.

Gherson arbitration specialists regularly deal with investor-state claims, including those relating to sanctions. We provide detailed assessment of treaty protections and various state measures and offer advice tailored to your specific circumstances.

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