Legal Business

Will $50bn Yukos award lead states to pull out of international arbitration treaties?

The landmark Yukos decision has forced governments to consider the consequences of entering into international treaties that allow foreign investors to take disputes to arbitration. With the likes of Indonesia and South Africa having already torn up agreements, Russia having withdrawn from the Energy Charter Treaty that gave the Yukos shareholders jurisdiction and India mulling an exit from bilateral investment treaties, could the $50bn award lead more states to withdraw their consent to arbitration?