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1. Investments Protection Treaties

Bulgaria is a party to more than 50 bilateral Investments Protection Treaties (“Treaties”), and all of them explicitly provide for certain dispute resolution mechanism. The overwhelming majority of the Treaties stipulate for two separate mechanisms applicable depending on the type and level of the dispute: i) a dispute between a signatory state and an investor from the other state; and ii) dispute between the signatory states themselves.


According to most of the Treaties the disputes between the signatory states would be referred to an ad-hoc arbitration in case the parties fail to reach settlement through friendly negotiations. Each Treaty provides for the specifics of the arbitration in each separate case. However, this particular mechanism concerns only disputes between the states and it could be initiated only by a contracting state in the event of breach by the other, i.e. at a governmental level. Nevertheless, it may still be used as a (last) indirect possibility for protection of the interest of a particular investor but only if undertaken by its own state.