Chambers and Partners has released its updated Investor–State Arbitration Guide, and Sorainen has contributed as the exclusive author of the Law & Practice and Trends & Developments chapters for Estonia, Latvia and Lithuania.
The guide provides a comprehensive overview of the current landscape of investor–state dispute settlement (ISDS), including recent reforms, evolving treaty practice and emerging case-law trends. Sorainen’s pan-Baltic arbitration team contributed jurisdiction-specific insight based on extensive experience advising states, investors and arbitral institutions.
Our contributors and overview
Estonia
- Carri Ginter, partner
- Maria Pihlak, partner
- Raul Kartsep, senior associate
- Katariina Kuum, associate
Estonia’s investor–state arbitration landscape is gaining strategic importance amid rapid economic and geopolitical shifts. Traditionally a marginal feature of Estonia’s investment landscape, ISDS is gaining strategic relevance, especially as foreign investment increases in high-tech, energy, and defence sectors.
Recent developments include stricter foreign investment screening, EU sanctions-related legislation, and heightened regulatory complexity in sensitive industries such as defence and dual-use technologies.
Estonia’s ambition to become a regional hub for defence and dual-use technologies is set to attract substantial foreign investment, while simultaneously heightening the potential for investor-state arbitration.
Read the full guide here.
Latvia
- Valts Nerets, partner
- Agita Sprūde, counsel
- Artūrs Kazāks, associate
Latvia’s investor–state arbitration framework remains pragmatic yet increasingly relevant amid geopolitical uncertainty and regulatory evolution. The country participates in international arbitration frameworks and has historically relied on treaty-based arbitration under bilateral investment treaties (BITs) and the ICSID Convention. Since joining the EU, Latvia has adapted its investment dispute mechanisms to comply with EU law, notably following the Achmea judgment, which led to the termination of numerous intra‑EU BITs.
Recent steps include the denunciation of the Belarus BIT and bilateral terminations with non-EU states such as Norway and the UK.
Latvia aims to preserve investor confidence through EU-aligned reforms, managing its treaty relationships in compliance with EU law and updating domestic arbitration rules to reflect international standards.
Read the full guide here.
Lithuania
- Kęstutis Švirinas, partner
- Ieva Rimavičienė, counsel
- Domantė Lunytė, senior associate
- Luka Tamulionytė, associate
Lithuania’s investor–state arbitration framework reflects its clear commitment to international dispute resolution mechanisms while successfully defending its regulatory actions and public interest measures.
Following the Achmea judgment, Lithuania terminated all intra-EU BITs and, as of 15 October 2025, formally ended its treaties with Russia and Belarus. Lithuania is also withdrawing from the Energy Charter Treaty, effective as of August 2026, with a 20-year sunset clause.
The country remains a party to the ICSID Convention and the New York Convention, and its Law on Investment expressly recognises arbitration agreements in international treaties. ISDS is a recognised and increasingly preferred method of resolving investment disputes in Lithuania, particularly those involving foreign investors and the Lithuanian state.
For investors, understanding a shifting legal landscape where investment disputes are no longer purely legal matters but are deeply intertwined with foreign policy, national security, and international relations is essential. Strategic foresight, risk mitigation and co-ordinated EU-level responses will be critical to navigating the next decade of investment protection and dispute settlement.
Read the full guide here.
ISDS trends highlighted in the guide and our Baltic chapters
The new Chambers guide examines the shifting global landscape of ISDS amidst increasing scrutiny, treaty reform, and discussions around new dispute-resolution models such as a multilateral investment court and mediation frameworks. It also highlights how geopolitical developments and regulatory changes continue to shape investment disputes worldwide.
By contributing the Baltic chapters, our team provides clarity on local legal frameworks, procedural approaches, and recent trends affecting investor–state arbitration in all three jurisdictions.
The guide is available online as an e-Guide here: https://gpg-pdf.chambers.com/Investor-State-Arbitration/.
