The Presidential Decree dated 31 May 2021 ratifying the new Turkey-Georgia Bilateral Investment Treaty (“the Treaty”) was published in the Official Gazette on 1 June 2021. Turkish and Georgian texts of the Treaty have been annexed to the decree. See in the Official Gazette here. (Available in Turkish only)
Here are some highlights from the new Treaty text:
-The definition of investors, incorporated as legal entities is narrowed to entities that are established for the purpose of generating profit
-The scope of the term investment remains the same. Yet, the activities falling within that scope will only be construed as an investment within the meaning of the Treaty, on the condition that the activity in question possesses the following characteristics:
- The Most Favoured Nation/National Treatment provision remains untouched.
- The dispute resolution mechanism under the Treaty, vests investors with the right to choose between resorting to arbitration or litigation at the Courts of the host state.
- The Treaty has been signed in three languages, Turkish, English and Georgian. Nonetheless, the English version prevails in case of any divergence.
The Treaty replaces, the initial bilateral investment treaty concluded on 30 July 1992 between the two countries following the independence of Georgia.