Breaching the Principle of pacta sunt servanda by Virtue of the Principle of Permanent Sovereignty over Natural Resources: Compensation or Indemnity

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ABBASI SARMADI MEHDI; AMANI MASOUD; Goharian Mohamad Javad

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Journal: Energy Law Studies Year:2018 | Volume:4 | Issue:1 Page(s): 183-210

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Title

Breaching the Principle of pacta sunt servanda by Virtue of the Principle of Permanent Sovereignty over Natural Resources: Compensation or Indemnity

Author(s)

ABBASI SARMADI MEHDI | AMANI MASOUD | Goharian Mohamad Javad | Issue Writer Certificate

Keywords

Pacta saunt servandaQ2

permanent sovereignty over natural resourcesQ1

Legitimate sovereigntyQ1

compensationQ1

indemnificationQ1

Abstract

The rule of pacta sunt servanda, as the most fundamental principle governing international treaties, has been limited under the influence of the actions of governments by other principles such as the principle of permanent sovereignty over natural resources. International judicial procedure indicates that if exercising sovereignty in oil contracts through expropriation and nationalization of foreign investor's properties leads to the termination of a contract, the State should provide compensation based on the book value of the seized property or indemnify on the basis of international law, such that if nationalization and expropriation is carried out by a legitimate authority and with observance of public interests and without any discrimination, the necessity of obtaining compensation from the foreign investor will be raised. Otherwise, indemnification based on international law which includes compensation as well as judgment to compensate the loss of benefits from future advantages should be discussed. But it is necessary that the judgment for compensation or indemnification is issued by a legitimate State in a way that in the situation of identification of governance by other followers of international law in compensation or indemnification can be deemed necessary.

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APA: Copy

ABBASI SARMADI, MEHDI, AMANI, MASOUD, & Goharian, Mohamad Javad. (2018). Breaching the Principle of pacta sunt servanda by Virtue of the Principle of Permanent Sovereignty over Natural Resources: Compensation or Indemnity. JOURNAL OF RESEARCHES ENERGY LAW STUDIES, 4(1 ), 183-210. SID. https://sid.ir/paper/264336/en

Vancouver: Copy

ABBASI SARMADI MEHDI, AMANI MASOUD, Goharian Mohamad Javad. Breaching the Principle of pacta sunt servanda by Virtue of the Principle of Permanent Sovereignty over Natural Resources: Compensation or Indemnity. JOURNAL OF RESEARCHES ENERGY LAW STUDIES[Internet]. 2018;4(1 ):183-210. Available from: https://sid.ir/paper/264336/en

IEEE: Copy

MEHDI ABBASI SARMADI, MASOUD AMANI, and Mohamad Javad Goharian, “Breaching the Principle of pacta sunt servanda by Virtue of the Principle of Permanent Sovereignty over Natural Resources: Compensation or Indemnity,” JOURNAL OF RESEARCHES ENERGY LAW STUDIES, vol. 4, no. 1 , pp. 183–210, 2018, [Online]. Available: https://sid.ir/paper/264336/en

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