Description:

Bilateral treaties on the promotion and mutual protection of investments have fundamental importance in the international legal regulation of investment relations. Their main goal is to ensure, through legal means, the relative stability of reproduction and freedom of movement of capital in the framework of the global economic system, and especially to ensure the influx of foreign investment in developing countries, protecting against the so-called non-commercial risks. International bilateral agreements on the promotion and mutual protection of investment are special interstate agreements, the subject of regulation of which are relations arising in connection with the investment of foreign private capital. One of the important factors in the rapid conclusion of the bilateral investment treaties (BIT) was the strong desire of citizens and companies in an increasing number of industrialized countries to make direct investments in other countries and the need for reliable international legal protection that arose in this regard. Foreign investors, with all the desire, could not rely only on the laws of the state - importer of capital, since in this case the investment risk would increase. As historical experience has shown, developing countries can change the law after investments have already been made.