Trade in the Shadow of War: The Impact of Armed Conflict on International Investment Agreements with a Focus on the Ukraine-Russia Conflict

This article examines the impact of military aggression on the stability of foreign investment contracts. Foreign investment plays a vital role as a key driver of economic development for countries. However, the occurrence of military aggression can seriously threaten the stability of these contracts, leading to the withdrawal of investors, disruption of investment environments, challenges in enforcing investment agreements, and ultimately a decline in new investments. Using descriptive and analytical methods, this study explores examples of military aggression in various regions of the world and their impacts on foreign investment agreements, with a particular focus on the situation in Ukraine and Russia. The research highlights that bolstering legal frameworks and establishing international agreements can play a significant role in safeguarding and attracting foreign investment amidst crises caused by military aggression. In this context, the role of international institutions such as the United Nations and the World Bank, as well as domestic policies of countries to support foreign investment in conflict zones, has been examined. Additionally, this article examines strategies to mitigate the negative impacts of military aggression on foreign investment and proposes measures to improve legal frameworks and policymaking to reduce these adverse effects. It also emphasizes the importance of international collaboration in this regard.