Breaching the principle of pacta sunt servanda by virtue of principle of permanent sovereignty over natural resources: compensation or indemnity

The rule of pacta sunt servanda, as the most fundamental principle governing international treaties, has been limited under the influence of the actions of governments by other principles such as the principle of permanent sovereignty over natural resources. International judicial procedure indicates that if exercising sovereignty in oil contracts through expropriation and nationalization of foreign investor's properties leads to the termination of the contract , the State should provide compensation based on the book value of the seized property or indemnify on the basis of international law, such that if nationalization and expropriation is carried out by a legitimate authority and with observance of public interests and without any discrimination, the necessity of obtaining compensation from the foreign investor will be raised. Otherwise, indemnification based on international law which includes compensation as well as judgment to compensate the loss of benefits from future advantages should be discussed. But it is necessary that the judgment for compensation or indemnification is legitimacy of the State in a way that in the situation of identification of governance by other followers of international law in compensation or indemnification can be deemed necessary.