On Thursday, 6 October, the Saeima supported in the second and final reading a law denouncing the Agreement of 3 March 1998 between the Government of the Republic of Latvia and the Government of the Republic of Belarus on the promotion and protection of investments.
“This law denounces one of several Latvian-Russian and Latvian-Belarusian bilateral agreements that are deemed to be terminated, denounced, or suspended following their review,” said Rihards Kols, Chair of the Saeima Foreign Affairs Committee, which is responsible for advancing the Draft Law.
Kols pointed out that bilateral agreements with Russia and Belarus have been under review since March 2022, as Russia is carrying out a full-scale military invasion of Ukraine, but Belarus is allowing to carry out this invasion from its territory; therefore, both are violating the imperative norms of international law. “Suspension or denunciation of these types of bilateral agreements is one of the measures against an aggressor state or a supporter of aggression recognised in international law,” highlighted the Chair of the Foreign Affairs Committee.
“Latvia has been fulfilling all of its mutual and general international responsibilities under all agreements in good faith and is committed to respecting the provisions of international law in the future,” underlined Kols. “Bilateral agreements are being denounced and suspended at least until Belarus ends the violations of international law regarding Ukraine, namely, fully compensates Ukraine for the violations of international law,” said Kols while pointing out that, in terms of this specific agreement, denunciation was the only appropriate measure, as the agreement is, by its nature, a morally and legally outdated document.
The denounced Agreement provided one contracting party investor the right to refer a dispute with another contracting party regarding investments in its territory to a Centre for Settlement of Investment Disputes; however, such a procedure is not in accordance with the investment protection principles developed by the European Commission, said Kols.
In the first quarter of 2022, Belarusian investments in Latvia reached 92 million euros, while Latvian investments in Belarus amounted to 45 million euros. According to the explanatory note of the Draft Law, considering the amount of mutual investment flow, Latvia is at higher risk of legal proceedings being brought against it based on a complaint by a Belarusian investor.
The Agreement is being denounced in accordance with the Law on International Treaties of the Republic of Latvia. A declaration on the denunciation of the agreement will be sent to the Government of Belarus. The Agreement will expire in twelve months, and the protection of investments will continue for 20 more years.
Saeima Press Service