UNITED KINGDOM IMPOSES SANCTIONS ON ROMAN ABRAMOVICH'S ASSETS: IS IT AN INDIRECT EXPROPRIATION?
Abstract
The asset freeze imposed by the United Kingdom(UK) on Roman Abramovich raises a critical legal issue regarding its classification as indirect expropriation under international investment law. A legal gap exists in interpreting economic sanctions as acts of indirect expropriation, particularly their compatibility with protections provided under Bilateral Investment Treaties (BITs). The research addresses whether such sanctions constitute unlawful indirect expropriation and examines the protection of Abramovich’s rights as a foreign investor under international law. Using a normative juridical approach, the analysis draws on international treaties, arbitration case law, and BIT provisions between Russia Federation and the United Kingdom. Findings indicate that the sanctions meet the criteria for indirect expropriation, causing substantial economic loss and disruption to Abramovich’s investments, including Chelsea FC. This paper contributes to the discourse on balancing state sovereignty, regulatory powers, and investor protections, offering insights into the broader implications of politically motivated actions on foreign investments.
Keywords
Full Text:
PDFReferences
Allegretti, Aubrey, and Jasper Jolly. ‘UK Imposes Sanctions on Roman Abramovich over “Clear” Links to Putin’. The Guardian, 2022. https://www.theguardian.com/world/2022/mar/10/uk-imposes-sanctions-on-roman-abramovich-over-clear-links-to-putin.
Amalia, Prita, and Muhammad Lazuardy Thariq Makmun. ‘Multinational Corporation’s Investments Made through Its Subsidiary under The Latest Generation of Investment Treaties’. Indonesian Journal of International Law 19, no. 1 (2021): 113–35. https://doi.org/https://doi.org/10.17304/ijil.vol19.1.5.
Amalia, Prita, and Garry Gumelar Pratama. ‘Indonesia Dan ICSID: Pengecualian Yurisdiksi ICSID Oleh Keputusan Presiden’. Majalah Hukum Nasional 48, no. 1 (18 July 2018): 1–21. https://doi.org/10.33331/mhn.v48i1.110.
Barklem, Courtenay, and Enrique Alberto Prieto-Ríos. ‘The Concept of “Indirect Expropriation”, Its Appearance in the International System and Its Effects in the Regulatory Activity of Governments *’. Civlizar Ciencias Sociales y Humanas- Universidad Sergio Arboleda 11, no. 21 (2011). http://ssrn.com/abstract=2761106.
BBC. ‘Chelsea: Funds from Roman Abramovich Sale Earmarked for Victims of Ukraine War Remain Frozen’. BBC, 2023. https://www.bbc.com/sport/football/67698963.
———. ‘Roman Abramovich: Chelsea Sale Halted by UK Government Sanctioning Club Owner’. BBC, 2022. Roman Abramovich: Chelsea sale halted by UK government sanctioning club owner’.
Chandradevi, Ayu Anezka. ‘Konsep Creeping Expropriation: Interpretasi Majelis Arbiter Di Dalam Putusan ICSID Terkait Creeping Expropriation’. Mutiara: Multidiciplinary Scientifict Journal 1, no. 8 (26 October 2023): 451–69. https://doi.org/10.57185/mutiara.v1i8.79.
Courses Lumenlearning. ‘The Beginning of the Cold War’. Course Lumenlearning. Com, n.d. https://courses.lumenlearning.com/suny-fmcc-worldcivilization2/chapter/the-beginning-of-the-cold-war/.
Crowell. ‘Russia and Ukraine: The Next Wave of International Disputes’. Crowell.Com, 2022. https://www.crowell.com/en/insights/client-alerts/russia-and-ukraine-the-next-wave-of-international-disputes.
Ekaristi, Pulkeria Proprieta Dewi. ‘Justification for Indirect Expropriation Within a Government Measure’. Juris Gentium Law Review 2, no. 1 (2014): 42–50. https://journal.ugm.ac.id/jurisgentiumlaw/article/view/56648.
Foreign, Commonwealth & Development Office. ‘Abramovich and Deripaska among 7 Oligarchs Targeted in Estimated £15 Billion Sanction Hit’. Gov.Uk, 2022. https://www.gov.uk/government/news/abramovich-and-deripaska-among-seven-oligarchs-targeted-in-estimated-15bn-sanction-hit#:~:text=Those%20newly%2Dsanctioned%20by%20the,also%20been%20placed%20under%20sanction.
Foster, George K. ‘Recovering “Protection and Security”: The Treaty Standard’s Obscure Origins, Forgotten Meaning, and Key Current Significance’. Vanderbilt Journal of Transnational Law 45 (2012): 1095–1156. https://download.ssrn.com/12/11/20/ssrn_id2178604_code792507.pdf?response-content-disposition=inline&X-Amz-Security-Token=IQoJb3JpZ2luX2VjEOj%2F%2F%2F%2F%2F%2F%2F%2F%2F%2FwEaCXVzLWVhc3QtMSJHMEUCIQDgpDhBB0oTaDLNcvtR5%2Fv0jyh9qQEx60qw0ZcBFUwLawIgLEaXcyukvpfkQIHSM03E6jRWLd%2FbsP23qC4AmCNikZEqxgUI0f%2F%2F%2F%2F%2F%2F%2F%2F%2F%2FARAEGgwzMDg0NzUzMDEyNTciDMK5LNMGcesfIn%2F3tiqaBVubRmxGjDU4Tc%2BN%2FVUl1qW3E77UH7kW7gM7Me26KN4Jk%2B0BNwb%2FUHnkRJ2orGWQrP0JJ4TR%2BO8Rk%2FVFaeMaOpCEOl5S1u6s8OOyT9LAL6%2Fmdo8FBekPYI4d41CiNPkwkXB%2FuY426bnQuPvelwlsFm8YkFICAyhXgOMJlqJCJeVU75%2FlssUhlVEg1l9CguF0K6CzfMp3ISe2%2BrrAZhel%2B6mrVnVyVu5jssicvTupTdqvKNcWTTnCw0ltP2sa%2BMoCcWmoaolOdxQHyRSvziKN%2FWKb%2Fn0H5IE8%2F8mvip5E1Fd%2BBEybsG6pEL411ZZSd2Uu8sFBzia5%2BiKIVAYJ4kbYyQ52j6Y6df66rhSrzzeQop%2FOCIHkNLkMfdrXN7eF%2BelyiuxnM5NPoD7G506pvms97i8Z%2B30r27%2Br8TCXNfyVkcaY6W0TA8ZnWfYZnIPdNZl2bari66b7fW80%2B%2FQUz9Bziuvngz3Q%2BiM5RlE72Tpa%2BLawhGr0ba7%2FKTVXU9dfot%2FFv9OSItjXjfT8bqKsneyVCzyg836%2BiKZiUWhRESWV3KIij%2BmdP7yMvA4LfbPPe%2FUaGONjhnqKZmB50hiHRSsQ4Vzgr5yOk9CnC0ik0jziioNtkDk1Q6m97y%2B%2FsULoCuDeeeOhHS82NS3NYZFc5JfDOmIEG4G%2B%2BhKNaoDlPws%2B%2FiJSIL1whDrdDxRhTzkITjyVWCuIOiFOn9oG2HjuYN5PfT8lTbKvvUhPjyoq%2BDzIuQn1cd8FPrnOOl0WdZRtOoTJJrASzv8ESd90R5IsdVcq3BMiD%2F2MIzZUu0GTGgibu%2Fa94ujxry29LJ71%2FX2A25c9tgbycOPMfX3Sz16PaPys9jaZCbGx7v0xvr4YL6oBQ35gCtKOhsy5%2BalP%2FjDy3Y28BjqxAWpoKW3YJo3W2SH5oLYNJH7naMuxaYir5AI5yq%2FjGQgYSQYq8%2BotTAURQ%2FhTdizTbdLgj3thNU887GmfFAJlgVzeXuecNKUuMWUfugS5X09TFleEHSI6TIczlJMF%2FYHoplP5Bbupx9xqGftghWKuAESOlmZaiT%2Fv%2BctH85vZMWudL2yzsFtbIGgjH9uONXoWcovRg1%2FTguwT%2BHsmO9XgnSKi81NUIuZB2btUGCHYJS0%2FFA%3D%3D&X-Amz-Algorithm=AWS4-HMAC-SHA256&X-Amz-Date=20250112T083612Z&X-Amz-SignedHeaders=host&X-Amz-Expires=300&X-Amz-Credential=ASIAUPUUPRWEV3XUZ6BI%2F20250112%2Fus-east-1%2Fs3%2Faws4_request&X-Amz-Signature=f6c1d6d1d3f2890ed204e0f11ee27a35198696f5fa3c49b8ffea79d059e8e0eb&abstractId=2102895.
Ghaziani, Moosa Akefi, and Mohammad Akefi Ghaziani. ‘The Role Of Expropriation Clauses In Protection And Promotion Of Foreign Investments In Renewable Energy: An Essential But Overlooked Legal Consideration’. Indonesia Law Review 11, no. 2 (2022): 191–215. https://scholarhub.ui.ac.id/ilrev/vol11/iss2/8/.
Hasan, Muhammad Iqbal. Hukum Investasi Internasional: Teori Dan Implementasi . Bandung: Refika Aditama, 2021.
Hertanti, Rachmi, and Rika Febriani. "Negara vs Korporasi” Indonesia Bilateral Investment Treaties (BITs). Jakarta: Indonesia for Global Justice, 2014. https://igj.or.id/wp-content/uploads/2015/08/MODUL-BITs_Indonesia.pdf.
ICSID. Metalclad Corporation v. The United Mexican States’ Case No. ARB(AF)/97/1 (1997).
———. Suez, Sociedad General de Aguas de Barcelona, S.A. and Vivendi Universal, S.A. (Formerly Aguas Argentinas, S.A., Suez, Sociedad General de Aguas de Barcelona, S.A. and Vivendi Universal, S.A.) v. Argentine Republic (II)’, Case No. ARB/03/19 (2003).
———. Técnicas Medioambientales Tecmed v. United Mexican States’ Case No. ARB(AF)/00/2 (2000).
———. Waguih Elie George Siag and Clorinda Vecchi v. Arab Republic of Egypt’ Case No. ARB/05/15 (2005).
Indonesia, Pemerintah Pusat. Agreement Between the Government of the Republic of Indonesia and the Government of the Republic of Singapore on the Promotion and Protection of Investments, Pub. L. No. 97 (2020). https://peraturan.bpk.go.id/Details/148465/perpres-no-97-tahun-2020.
Kirby, Paul. ‘Has Putin’s War Failed and What Does Russia Want from Ukraine?’ BBC, 2023. https://www.bbc.com/news/world-europe-56720589.
LOSARI, Junianto James. ‘Comprehensive or BIT by BIT: The ACIA and Indonesia’s BITs’. Asian Journal of International Law 6, no. 1 (28 January 2016): 15–45. https://doi.org/10.1017/S2044251314000332.
MacInnes, Paul. ‘Roman Abramovich Representatives Believe UK Government Changed Terms over Frozen £2.5bn’. The Guardian, 2023. https://www.theguardian.com/football/2023/oct/17/roman-abramovich-representatives-uk-government-frozen-chelsea-sale-funds.
Maheswara, Joseph. ‘Efektivitas Klausul Definisi Investasi & Investor Pada Bilateral Investment Treaty Dalam Menjaga Keseimbangan Kepentingan Antara Investor Dan Host State Serta Penerapannya Dalam Penyelesaian Sengketa Arbitrase Melalui Icsid (Studi Kasus Sengketa Investasi)’. Hukum Pidana Dan Pembangunan Hukum 6, no. 1 (2023): 20–36. https://e-journal.trisakti.ac.id/index.php/hpph/article/view/16665.
Nagourney, Eric, Richard Perez-Pena, and Dan Bilefsky. ‘The Roots of the Ukraine War: How the Crisis Developed’. The New York Times, 2023. https://www.nytimes.com/article/russia-ukraine-nato-europe.html.
Noveanto, Eric. ‘Motif Di Balik Keputusan Roman Abramovich Beli Chelsea’. Goal.Com, 2020. https://www.goal.com/id/berita/abramovic-chelsea-alasan-motif-beli/1g79debzjxz7fz8rcqn9gk4bc.
OECD. ‘“Indirect Expropriation” and the “Right to Regulate” in International Investment Law’. Vol. 2004/04. OECD Working Papers on International Investment, 1 September 2004. https://doi.org/10.1787/780155872321.
Paulsson, Jaun, and Zachary Douglas. ‘Indirect Expropriation in Investment Treaty Arbitrations***The Views Expressed in This Article Are Exclusively Those of the Authors and Do Not Necessarily Reflect the Opinions OfFreshfields Bruckhaus Deringer or Its Clients’. Kluwer International Law , 2021, 1–8. https://icsid.worldbank.org/sites/default/files/parties_publications/C8394/Claimants%27%20documents/CL%20-%20Exhibits/CL-0274.pdf.
Reinich, August, and Christoph Schreuer. ‘Expropriation in International Protection of Investments’. In International Protection of Investments, 1–250. Cambridge University Press, 2020. https://doi.org/10.1017/9781139004978.003.
Rihwanto, Yacob. ‘Bilateral Investment Treaties Dan Penyelesaian Arbritase Internasional (Studi Kasus Pencabutan Izin Kuasa Pertambangan Churchill Mining)’. Jurnal Lex Renaissance 1, no. 1 (25 January 2016): 107–25. https://doi.org/10.20885/JLR.vol1.iss1.art7.
Roeroe, Fredy. Batam Komitmen Setengah Hati. Jakarta: Aksara Karunia, 2003.
Russian Federation, and United Kingdom. Agreement between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the Union of Soviet Socialist Republics for the Promotion and Reciprocal Protection of Investments (1989). https://jusmundi.com/fr/document/treaty/en-agreement-between-the-government-of-the-united-kingdom-of-great-britain-and-northern-ireland-and-the-government-of-the-union-of-soviet-socialist-republics-for-the-promotion-and-reciprocal-protection-of-investments-russian-federation-united-kingdom-bit-1989-thursday-6th-april-1989.
Sacerdoti, Giorgio. Bilateral Treaties and Multilateral Instruments on Investment Protection. Nijhoff, 1997.
Sembiring, Laura Natalia. ‘Urgensi Perjanjian Investasi Bilateral Antara Indonesia Dan Negara Lain Dengan Klausula Penyelesaian Sengketa Investor-State Dispute Settlement’. Dharmasisya Jurnal Program Magister Hukum FHUI 1, no. 4 (2022): 1941–54. https://scholarhub.ui.ac.id/dharmasisya/vol1/iss4/22.
Shanks, Robert B. ‘Insuring Investment and Loans against Currency Incovertibility, Expropriation, and Political Violence Insuring Investment and Loans Against Currency Inconvertibility, Expropriation, and Political Violence’. Hastings International and Comparative Law Review 9, no. 3 (1986): 417–37. https://repository.uclawsf.edu/cgi/viewcontent.cgi?article=1180&context=hastings_international_comparative_law_review.
Soekanto, Soerjono, and Sri Mamudji. Penelitian Hukum Normatif Suatu Tinjauan Singkat. 1st ed. Jakarta: Rajawali Pers, 2010.
Subedi, Surya P. International Investment Law : Reconciling Policy and Principle . New York: Hart Publishing, 2008.
Sugeng. Memahami Hukum Perdata International Di Indonesia . Jakarta: Kencana, 2021.
UNCITRAL. BG Group Plc v. The Republic of Argentina (2003).
———. Pope & Talbot v. The Government of Canada (1999).
———. Saluka Investments BV v. The Czech Republic’ PCA Case No. 2001-04 (2001).
UNCTAD. ‘Expropriation UNCTAD Series on International Investment Agreements II’, 2012. https://unctad.org/system/files/official-document/unctaddiaeia2011d7_en.pdf.
———. ‘Transparency UNCTAD Series on Issues in International Investment Agreements II’, 2012. https://unctad.org/system/files/official-document/unctaddiaeia2011d6_en.pdf.
Walley, George William Alexander. ‘Protections Against Direct and Indirect Expropriation How the United States and the European Union Use Sanctions and Bilateral Investment Treaties to Protect Intellectual Property’. Lund University, 2023.https://lup.lub.lu.se/luur/download?fileOId=9123546&func=downloadFile&recordOId=9123534.
DOI: https://doi.org/10.24815/kanun.v26i3.39515
Article Metrics
Abstract view : 0 timesPDF - 0 times
Refbacks
- There are currently no refbacks.
