to encourage greater economic cooperation between them with regard to the investments of nationals and businesses of one contracting party in the territory of the other party; The Bilateral Investment Treaty (ILO) with Ukraine was the seventh treaty of its kind between the United States and a new state independent of the former Soviet Union. The United States had previously concluded ILOs with Russia, Armenia, Belarus, Kyrgyzstan and Moldova; and then signed a contract with Georgia. The treaty is based on the idea that an open investment policy contributes to economic growth. The treaty will support Ukraine in its efforts to develop its economy by creating more favourable conditions for US private investment and thus strengthening private sector development. However, U.S. policy is to state during the negotiations that the conclusion of an ILO does not necessarily result in an immediate increase in U.S. private investment flows. The investor may, in accordance with paragraph 3, if the investor has not filed the dispute in accordance with the procedure covered in paragraph 2 and has elapsed six months from the date of the appearance of the dispute: approve the filing of a binding arbitration procedure by the International Centre for the Settlement of Investment Disputes (if the host country has joined the Centre – otherwise the additional ICSID facility is available) or an ad hoc arbitration procedure using the Regulation Commission for International Trade Law (UNCLOS). Paragraph 3 also recognizes that the parties to the dispute may, by mutual agreement, choose another arbitration institution or a set of arbitration rules. Article VI provides several ways to settle disputes between the investor and the host country. Paragraph 10 limits the MFN`s obligation to article by providing that it does not apply to benefits granted by a party to third countries because of a party`s membership in a free trade area or customs union or a future multilateral agreement under the General Agreement on Tariffs and Trade (GATT). The exception of the free trade area under this treaty corresponds to the trade exception to the GATT.
Treaty between the United States of America and Ukraine regarding the promotion and mutual protection of investments to the extent that investments are not subject to the provisions of an agreement to avoid double taxation between the two parties or have not been increased under these comparative provisions and are not resolved within a reasonable time. The Article VI procedures apply to an „investment dispute,“ a clause that includes all disputes arising from an investment authorization, an agreement between the investor and the host government, or the rights conferred by the contract with respect to an investment. Article VII provides for a mandatory arbitration procedure for disputes between the United States and Ukraine that are not resolved through consultations or other diplomatic channels. The section represents the prior consent of each party to arbitration. It provides for the selection of arbitrators, sets deadlines for bids and obliges contracting parties to bear equal costs, unless the court requests otherwise. I have the honour of confirming the following agreement between the Government of the United States of America and the Government of Ukraine in the negotiations on the Treaty on Mutual Investment Promotion and Protection (the „Treaty“): paragraph 7 provides that each party must provide effective means to enforce investment rights and rights. investment agreements and investment authorities.