Question 2177 — treaties and conventions

Summary

Ms. Aurélie Trouvé alerts the Minister of the Economy, Finance and Industrial and Digital Sovereignty to the investment dispute involving France in the so-called “La Montagne d'Or” project in Guyana. In June 2021, the Russian company Nordgold, through its two majority shareholders, formally initiated an arbitration dispute against France: the dispute is linked to the refusal of the French state, in January 2019, to extend the “Paul-Isnard” mining concession where the “Montagne d’Or” industrial gold mine project is proposed. The company, legally registered in London and owned by two Russian holding companies controlled by the same shareholder, believes that the decision to end the concession contravenes France's international obligations under the France-Russia bilateral investment treaty. The unconditional support of the minister and then president Emmanuel Macron for the “Montagne d’Or” industrial project until the fall of 2018 is akin to a “commitment” under the treaty from the point of view of Russian investors. The company is demanding nearly 4 billion euros in compensation for the cancellation of a project which it hoped would bring in at least 3 billion euros in the long term. But the first brick was never laid. This dispute, one of the first involving France as a defendant in an investment arbitration procedure, reveals all the risks of the hundred or so bilateral investment treaties involving the country. It occurs before local remedies have been exhausted and even though the French courts have ruled in favor of the project leaders at all stages. The France-Russia treaty protects investments made via intermediary structures as long as the controlling shareholders have the nationality of one of the parties. French or Russian investor, it is therefore possible to initiate an arbitration dispute against the opposing State from any structure, registered anywhere in the world. This allows you to choose the most advantageous TBI, treaty or standard shopping, in short. The “Montagne d’Or” company finally estimates its expenses total investment costs of 780 million euros (including operating and decommissioning costs): and if the project is effectively abandoned, around 500 million will have been invested. Even if the project operated over a period of twelve years as hoped, the expected net result would be around 630 million. We are far from the 4 billion required in compensation! This raises several questions relating to the dispute itself. and the future of the bilateral investment agreement between France and Russia. What is France's defense strategy? Which arbitrator did she appoint and for what reasons? Has she appointed counsel for her defense and if so who? What will be the cost of this defense for public finances? This is information requiring the most basic transparency, both vis-à-vis the legislator and the general public. audience. Associations and experts have long warned of the legal and financial risk taken by governments which multiply these agreements in the hope of attracting investments. Furthermore, the existence of a bilateral France-Russia treaty granting so many privileges to Russian capital investing in the country appears unjustifiable while Europe is at war with Russia and most of the "oligarchs" Russians, including Mr. Mordashov, real owner of Nordgold, are subject to international sanctions. Is the future of this dispute affected by the existence of these sanctions? And above all, will the minister consider suspending the France-Russia treaty given the conflict and sanctions at work? Even if the survival clause of Article 11 will allow its activation for another 15 years, it would be a salutary political gesture in at the same time as a step in the desirable direction of disarming the international investment protection system. She wants to know his position on the subject.

Machine translation from French. The official text remains authoritative.

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