The Umbrella Clause as a Mechanism for Securing the Host State’s Obligations toward Foreign Investors

The article examines the umbrella clause in bilateral investment treaties as a treaty-based mechanism for securing the host State’s obligations toward foreign investors. It clarifies doctrinal approaches to international legal guarantees in the investment sphere and substantiates the relevance of treaty formulations requiring the State to observe commitments undertaken in relation to investments. The study identifies the correlation between the umbrella clause and other protective standards in investment agreements, as well as the factors determining the scope of its application in the settlement of investment disputes. It is argued that the legal effect of an umbrella clause depends on the wording of the relevant treaty and on the interpretative criteria applied by competent fora, while ensuring legal certainty and an appropriate balance between public and private interests in investment relations.