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List of contents
Acknowledgements
List of abbreviations
PART I
Political risks in the energy sector
1 Introduction and framework of the research
Introduction
Expropriation or nationalisation?
Why are stabilisation clauses a controversial issue?
Host government agreements
Objectives and scope of the research
The gap in conventional literature
Research questions
Methodology
Overview of Azerbaijan and Turkey
Baku–Tbilisi–Ceyhan crude oil pipeline project: timeline, importance and issues
Structure of the book
2 Indirect expropriation
Introduction
Distinguishing between direct and indirect expropriation
The types of host state measures that may constitute indirect expropriation
Criteria for the distinction between legitimate regulation (noncompensable regulation) and indirect expropriation
Sole effect versus police power
Bilateral investment treaties of Azerbaijan and Turkey and their treaty provisions concerning indirect expropriation
Tools for mitigating indirect expropriation risk
Conclusions
PART II
Mitigating political risks through stability provisions
3 Stabilisation clauses
Introduction
General implications of stabilisation clauses
Typologies of stabilisation clauses
Legal importance and functional value of stabilisation clauses
Do stabilisation provisions constitute a threat to environmental protection and human rights?
The BTC pipeline project (I): reactions to the project
Conclusion
4 Lenders, risk insurers and rating agencies
Introduction
The main financial institutions in project financing
The role of lenders in inclusion of stabilisation clauses
Political risk insurance providers
The role of political risk insurance providers in the inclusion of stabilisation clauses
Credit rating agencies
The role of credit rating providers in the inclusion of stabilisation clauses
Baku–Tbilisi–Ceyhan pipeline project (II)
Conclusions
5 Political systems and laws on foreign investment in Azerbaijan and Turkey
Introduction
Azerbaijan
Turkey
A comparison of guarantees available under FDI laws and political regimes in Azerbaijan and Turkey
Conclusions
PART III
Conclusion and recommendations
6 Conclusions and recommendations
The research findings and conclusions
Recommendations
Index
About the author
Hakan Sahin is an Assistant Professor in Private International Law at Maltepe University, Istanbul. He regularly advises state entities as well as private clients on a range of issues, including international energy law, international arbitration and international investment law.
Summary
This book which determines the political risks that arise from unilateral actions of host governments during the life span of the energy investment projects. Focusing on stabilisation clauses as a political risk manager, it examines what influences host states to agree stability in their long term host governmental agreements.
