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Sedelmayer v. Russian Federation

Type of decisionAward
Date of decision7 July 1998
Staffan Magnusson (President)
Jan Peter Waehler
Ivan S. Zykin (dissenting)
Legal instrumentBIT between Germany and Russian Federation (1983)
Further information

Statements from this decision

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The defence of estoppel may require a state to raise questions of irregularities at an early stage of the proceedings
“Investment” has a wide scope
A shareholder can bring claims concerning investments formally made by somebody else, at least when the treaty so provides
Permanent residence at the time when the investments were made is needed
Application of the control theory can be mirrored by the IIT
Even if the procedures required before the initiation of arbitration proceedings are not properly complied with, the consequences would be too far-reaching if – solely on this ground – a tribunal would be prevented from examining the case
An IIT may explicitly provide the investor the right to initiate proceedings before international dispute settlement mechanisms parallel to those before national courts
Addressing a request for arbitration to one of the state’s proper representatives is sufficient to bring a claim against that state
Some IITs provide explicitly for rules on interest and its calculation


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