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Hermeneutic Reflections on the Specific Purpose of Umbrella Clauses

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Over the past several years, numerous scholarly studies put a spotlight on the destination of observance of commitment clauses as private investors increasingly sought to utilize the ‘umbrella mechanism’ in disputes arising out of breaches of contractual and similar non-treaty obligations by the host states. To date, the animated debate on the intended effect of pacta sunt servanda stipulations has failed to produce a unified approach to understanding the nature of such provisions. The pluralism of opinion on their practical implications continuously renders the claimant’s chances of success highly uncertain, even when a breach of the underlying commitment on the part of the host state is beyond any reasonable doubt. This article endeavors to identify the specific purpose of umbrella clauses by subjecting the existing views on the matter to closer scrutiny.

Affiliations: 1: LL.M. (Frankfurt); Associate, Khrenov and Partners, Moscow office e.gadelshina@yklaw.ru; e.gadelshina@gmail.com

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/content/journals/10.1163/22129000-01405002
2013-01-01
2016-12-04

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