Abstract
International investment law protects investors from unlawful expropriation of investments by the host state. This article focuses on the problems of protection of investors against such unlawful actions by the state and the possible application of the right to property which is established in the European Convention on Human Rights as the possible defence mechanism. The purpose of this study is to assess whether, in cases of expropriation of investments, investors may effectively defend before the national tribunals relying on Article 1 of the Protocol 1 of the European Convention on Human Rights. The authors analyse complicated questions related to this problem, namely, whether investment shall be full under the notion of “property” under the said international convention, what kind of protection may be provided in case of expropriation of investment in the European Union Member States and how investors shall be compensated against the violation of their right to property in such cases. The authors use comparative, systematic analysis of deductive methods for the assessment of the relevant sources and formulation of the conclusions and proposals. The authors found that though the right to property under the European Convention on Human Rights protects foreign investments against expropriation, one of the most problematic issues related to the application of the right to property under this act in investment disputes is the question of fair compensation to investors.