Special considerations regarding indirect expropriation
in international economic law
Assistant professor Laura-Cristiana SPĂTARU-NEGURĂ
The right to property is a human right that has to be respected so that if the
property of a natural or legal person is taken over, the respective person has to be
compensated. The right of a state to control the economic business is one of the rights
sustained and exercised by the states on a constant basis. This reflects the inherent
sovereignty of a state to control its people, incidents and objects found on its territory.
Between these rights, the situation of indirect expropriation appears which has been
described in the doctrine as being very abstract and rigid, big lacunae existing. The sense
of the indirect expropriation and of the international investors’ protection against the
indirect expropriation is very ambiguous. Using different methods specific to scientific
analyse of the legal phenomenon (e.g. the logical method, the comparative method, the
historical method and the quantitative methods), we consider that through this paper we
can reach certain results that could be interesting for any legal practitioner or theoretician,
this paper intending to present the most relevant cases that could amount to indirect
Keywords: indirect expropriation, host state, foreign investor, investments.
JEL Classification: K11, K23, K33.
1. Introductive considerations regarding the larger legal context in
which the concept of expropriation appears
The treatment of foreign investments comprises the principles and rules, of
international or domestic law, regulating the regime of the foreign investment,
from the moment of its setting up until its liquidation.
The principles and rules of domestic law are not elaborated by the origin
state of the investor, but by the host state, and these regulations bring to life the
political choices of the host state regarding the foreign investment.
The expropriation represents an act of the public power resulting from an
administrative measure, involving the property transfer from the private sector to
the public sector, done under jurisdictional control and concerning individual
Laura-Cristiana Spătaru -Negură - „Nicolae Titulescu” University of Bucharest, Romania,