Guarantees for the protection of investor rights in production sharing agreements

Given that production sharing agreements are part of the investment legislation, it is appropriate to recall the guarantees of investors' rights in production sharing agreements.

States equate the status of domestic and foreign investors, the provision of guarantees is, as a rule, the same for each of them.

States guarantee the protection of foreign investments based on effective legislation (for example, in Ukraine such laws as the Law of Ukraine «On Investment Activity» No. 1560-XII of September 18, 1991, the Law of Ukraine «On the Foreign Investment Regime» No. 93/96 of March 19, 1996, have been adopted and are in force).

States also guarantee the protection of foreign investments through a system of concluded international treaties and the participation of states in various international organizations and intergovernmental associations.

Investors, in particular foreign ones, are provided with equal treatment, which excludes the application of discriminatory measures that could hinder the management of investments and their use, and provides for the conditions and procedure for the export of invested assets and investment results.

To ensure a favorable and stable investment regime, states have provided investors with state guarantees of investment protection, which consist of:

1) in the order of changes to the legislation that concerns and affects the activities of investors.

2) guarantees to prevent the forced seizure of investors' property, as well as the punishment of illegal actions by state authorities and their officials.

3) in compensation and restitution of losses to foreign investors.

4) in guarantees of transfer of profits, income and other funds received because of foreign investments.

5) in taxation and collection of customs duties on goods imported into the state as a contribution of a foreign investor to the authorized capital.

6) in protection and enforcement of intellectual property rights.

7) in guarantees for the activities of investors in special economic zones.

8) in pricing in investment activities.

An important step towards approaching international standards for the protection of investor rights is the waiver by states in investment agreements of judicial immunity, immunity from preliminary injunctions, and enforcement of court decisions.