Assessment of the Real Damage Suffered by the Parties to the Agreement on the Protection and Promotion of Investments

Abstract

The subject of the study is the financial responsibility of a public legal entity to an organization implementing an investment project, which are parties to an agreement on the protection and promotion of investments, in case of violation of the stabilization clause. The purpose of the work is to develop methodological approaches to determining the real damage (including justification and calculation formulas) arising from various deteriorating conditions of the organization implementing the project. Conclusions are drawn that the real damage to the organization implementing the project, in case of violation of the stabilization clause, is to recover the costs of restoring the violated right.

Such expenses are the difference between the actual and estimated purchase price of goods (works, services); the difference in the cost of payment for procedures, as well as the payment of sanctions to third parties for violating the terms of concluded contracts (in case of an increase in the time and number of procedures, the establishment of additional requirements and prohibitions to the conditions of implementation of the investment project); an increase in the amount of payments (as a result of an increase in the rate of export customs duties, the sale price and the amount of rent for land plots owned by the state and municipal property); fees for negative environmental impact and use of water bodies; additional costs (incurred in connection with the change of the basis for obtaining the rights of the organization implementing the project to land plots that are in state or municipal ownership, as well as reducing / limiting the scope of rights of land owners /land users /landowners /tenants of land plots and changing the timing and scope of state support measures).