The Criteria Governing the Compensation of Moral Damages in Relations between the Host State and the Foreign Investor with Emphasis on ICSID Arbitral Awards

Foreign investment issue and compensation in that field constitutes one of the most important matters in contemporary International Law. When an investment relation between a host State and foreign investors is formed, the parties to terminate the relations are committed to comply with the obligations they accepted. However at times, when there is an expropriation of assets of foreign investors, their proprietary rights are affected and even violated and thus incur material or moral damages to the other party where the defaulting party is obliged to compensate them. Damages of the moral as well as material aspects are reparable. The aim of the present study is to examine the issue of calculating the amount of compensation in International Law and some arbitral awards and to identify the criteria governing them.