Estonia, Latvia, Lithuania and Poland urge EU to end investment treaties with Russia

Estonia, Latvia, Lithuania and Poland have called on the European Commission to ensure the termination of bilateral investment treaties with Russia, which remain in force in 17 EU countries. According to the Estonian public broadcaster ERR, citing the Estonian Ministry of Foreign Affairs, the four states believe that Moscow uses these treaties to influence European policy, including challenging sanctions, which threatens the economic security of the European Union. The four countries sent a joint statement to the European Commission on 2 November 2026.

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Bilateral investment treaties (BITs) define rules for investors from one country who invest in the economy of another. They also provide mechanisms for resolving disputes between investors and states.

However, as the authors of the statement stressed, the agreements with Russia contain provisions that encourage investment in its economy and allow sanctioned individuals to bring claims against EU states and the European Union itself in international arbitration.

According to the four countries, Moscow can use such mechanisms to pressure European governments and influence their decisions, particularly regarding sanctions.

One example of the use of such mechanisms was an arbitration claim brought by Russian businessman Mikhail Fridman against Luxembourg. In 2024, he initiated an international investment arbitration, demanding approximately $16bn in compensation for the freezing of his assets following the imposition of EU sanctions.

The basis for the claim was a bilateral investment treaty that the USSR concluded with Belgium and Luxembourg in 1989. The document is still in force and allows investors to apply to international arbitration over decisions by states that, in their view, violate investment protection guarantees.

The proceedings are ongoing.

At the same time, in September 2026, the EU removed Mikhail Fridman and Russian businessman Alisher Usmanov from its sanctions list.

Estonian Foreign Minister Margus Tsahkna emphasised that the agreements, which were previously intended to protect investors, now pose additional risks to European security.

According to him, EU states concluded these treaties at a time when they did not yet realise that Russia posed a long-term threat to all of Europe. Now Moscow can use companies and investment mechanisms as a hidden tool of political and economic influence.

Tsahkna also noted that the European Union must maintain Russia’s international isolation and prevent it from influencing political decisions through existing treaties.

Estonia, Latvia, Lithuania and Poland called on the European Commission, alongside member states, to develop a joint plan to resolve the issue in line with the EU’s sanctions policy regarding Russia.

The countries hope to agree on a decision in the first quarter of 2027.

As reported, on 22 September, the European Union agreed to extend individual sanctions against Russia by three years, until 22 September 2029.

The restrictions cover more than 3,000 individuals and organisations and include the freezing of assets, a ban on making funds or other economic resources available to them, and, for individuals, travel restrictions.

At the same time, the decision to remove Alisher Usmanov and Mikhail Fridman from the sanctions list drew criticism from Ukraine and a number of European states. In particular, Latvia opposed the lifting of restrictions on these businessmen and subsequently imposed its own national sanctions against them.

EU states are increasingly linking decisions on sanctions against Russia to their economic and political interests. According to experts, this makes it difficult to agree on new restrictions against Russia.

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