Dealing with political risk
Speakers: Iraj Ispahani, CEO, Ispahani Advisory, Hussein Haeri, Withers LLP
Q: Can you take up cases retrospectively?
A: It is possible to take up investment treaty cases retrospectively, even several years after events have taken place. For example, I was involved in a case brought 11 years after events happened and that was considered acceptable. But it is not usually possible to bring a case concerning actions that happened decades earlier.
Q: What’s the most challenging government you’ve encountered and perhaps the one we should be most concerned about?
A: Depending on the circumstances, many governments can create very challenging circumstances for investors. The reality is that nowhere in the world today is wholly immune from political risk – although there is still a spectrum of political risk.
Q: How long can it take to get a successful treaty arbitration result?
A: This depends on many variables and the procedural timetable for a case. It can be possible to get a successful result in less than 2 years. In some case, it can take many more years.