In the wake of the 1917 Russian Revolution, the new Bolshevik regime, keen to destroy the power of global capital, expropriated the commanding heights of the Russian economy and repudiated a mountain of foreign debt incurred by the Tsar. That action left thousands of international investors out of pocket. But addressing their claims proved exceptionally hard. Only in 1986, in the era of Thatcher and Gorbachev, did the British and Soviet governments finally reach a settlement. Other Western powers agreed resolutions later still.

The story of this episode is fascinating in itself, but it also sheds new light on how disputes between states and international investors are resolved today. Those disputes rarely hit the headlines, however, that they can be incredibly important for all of us. 

How they’re resolved today is very different from in the 1980s, but the modern methods face severe criticism – not least from experts and campaigners who argue they can impede action on climate change and human rights. 

Lauge Poulsen joins us today. He is Professor of International Relations and Law here in the UCL Department of Political Science, is co-author of the study of the Russian case, and THE expert on disputes between states and investors. 

Mentioned in this episode:

• Eileen Denza and Lauge Poulsen. 'Settling Russia's Imperial and Baltic Debts'. American Journal of International Law.

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