06.08.2014 - 06:20 [ Techdirt ]

Corporate Sovereignty Tribunal Makes $50 Billion Award Against Russia

Techdirt has been writing about the dangers faced by nations that sign up to treaties containing corporate sovereignty clauses for some time now. These chapters are typically included in so-called trade agreements like TAFTA/TTIP and TPP — although they actually go far beyond regulating trade — but are also found elsewhere. For example the Energy Charter Treaty (ECT) includes one, as Germany found to its cost when the Swedish company Vattenfall used the investor-state dispute settlement (ISDS) mechanism to claim €3.7 billion after the Germany state decided to phase out nuclear power stations — thus reducing Vattenfall‘s future profits. Now the ECT‘s corporate sovereignty chapter has struck again on an even more staggering scale: