Common use of Nationalization and Expropriation Clause in Contracts

Nationalization and Expropriation. 1 . Nationalization, expropriation or any other measure having similar characteristics or effects that might be taken by the authorities of one Contracting Party against investments in its territory by investors of the other Contracting Party should be imposed only in the public interest and in accordance with the law, and should in no case be discriminatory. The Contracting Party that imposes such measures shall pay the investor or the investor's assignees appropriate compensation without undue delay and in freely convertible and transferable currency. 2 . The compensation shall equal the actual market value of the investment immediately prior to the announcement or publication of the decision to nationalize or expropriate. If no agreement can be reached between the investor and the Contracting Party under obligation to pay, the compensation shall be determined according to the procedures for the settlement of disputes contained in article XI of this Agreement.article XI of this Agreement. 3 . Following expropriation, if property acquired for that purpose has not been fully or partly utilized as intended, those from whom it was expropriated and their assignes have the right to reacquire it.