Another pitfall in the way of the Ukrainian economy could be , according to analysts TeleTrade, knocking private investors in Europe and the United States from future compensation Ukrainian administration. Among other problems , Ukraine is unable to pay its creditors. The country needs a serious additional funding reform and reschedule their debts. Thus, the best efforts of the IMF , the U.S. and the European Union to achieve these objectives will be jeopardized by investment agreements that they have imposed on Ukraine by the scheme , working with other emerging economies . As a result , if the U.S. and Western Europe is not banned its private investment funds aggressively seek compensation , Ukraine could be facing a series of complex and costly court cases.
Astute lawyers creditors , arguing that investment treaties give bondholders the same rights as direct investors , smuggling in cases of sovereign debt through international arbitration . They did this every time found the investment agreement with a wide open definition. A striking example is the recent experience of Greece and Cyprus , which emphasizes the so-called rebound in sovereign debt restructuring .
To date , Ukraine has ratified more than 50 investment contracts , analysts TeleTrade, the relevant provisions of which are often identical to those that were in Greek investsoglasheny with fixed wide, open certain investments . Including , not excluding sovereign debt and providing investors direct access to arbitration.
Thus, to avoid future endless stream of single international arbitrations worth to make adjustments to the investment contract. Countries that have such agreements with Ukraine, may add provisions clearly indicate exclusion of sovereign debt . Of course, such a re- vote on the 50 contracts will be uncomfortable , but even from the revision of the contract between the U.S. and Ukraine , the country will get a significant benefit