ABSTRACT
This chapter addresses the potential collision between the international law principle of non-recognition and the individual's right under international law to file an investment claim. It outlines the challenges for arbitrators and parties in cases involving illegally annexed territory. As a matter of general international law, illegal acquisition of territory must not be recognised by the international community. This obligation of non-recognition of situations created by illegal acts, in particular through the use of force, is nowadays well-accepted in general international law. In addition to the problems posed by the obligation of non-recognition in terms of treaty interpretation, a further obstacle to an investment claim with regard to illegally annexed territory could be the International Court of Justice (ICJ) indispensable third-party rule. In reliance on the so-called Monetary Gold doctrine, the argument could be made that investment tribunals were prevented from making any determination on the territorial situation in the absence of de jure sovereign as an indispensable third party.
