The Ministry of Justice of the Russian Federation presented a project to establish a BRICS International Investment Arbitration Center

On October 27, 2025, in Rio de Janeiro, as part of the 10th BRICS+ Legal Forum, Russia presented a project to establish a BRICS International Investment Arbitration Center. The initiative aims to develop a unified approach to resolving investment disputes between states and investors in the countries of the association.

Key positive aspects of the project

•    According to representatives of the Russian Ministry of Justice, the creation of such a center will strengthen the legal basis for economic cooperation between BRICS countries and increase investor confidence in international dispute resolution mechanisms.

•    The project provides that the Center will have jurisdiction over both the arbitration of investment disputes and their peaceful settlement, including mediation procedures. The possibility of extending its jurisdiction to other categories of economic disputes is also being discussed.

• The project is focused on BRICS member countries, which is intended to contribute to the formation of a “single investment arbitration space.”

• Experts note that the creation of the BRICS International Arbitration Center will be an important step towards the development of alternative instruments for resolving investment disputes, taking into account the interests of the participating states and the specifics of the legal systems of the countries in the association.

• The Russian initiative aims to establish a balanced and sustainable dispute resolution system based on the principles of fairness, transparency, and respect for state sovereignty.

Potential risks for companies

•    Uncertainty regarding the Center’s legal status. At the time of submission, the project is at the concept stage, without approved jurisdiction, procedures, or rules for recognizing decisions. This creates legal uncertainty for investors planning to include arbitration clauses in future contracts.

•    Transition period and duplicating mechanisms. When the Center launches, it might end up working alongside other international arbitration institutions (like the ICSID, ICC, and UNCITRAL), which could lead to conflicts of jurisdiction and make it harder to pick a place to settle disputes.

•          Differences in the legal systems of the BRICS countries. The participation of countries with different judicial practices and levels of law enforcement may lead to inconsistencies in decisions and problems in their enforcement at the national level.

•    Risks of recognition and enforcement of decisions. It is not yet clear whether the Center’s decisions will be automatically recognized and enforced in the participating countries. The lack of unified procedures may increase the time and costs involved in protecting companies’ interests.

•    Possible changes to arbitration clauses in investment agreements. Companies operating in BRICS markets may need to review existing contracts and arbitration clauses after the Center is approved.

Conclusion

The creation of the BRICS International Investment Arbitration Center is a significant step toward establishing the bloc’s own system for resolving investment disputes. For businesses, this opens up the prospect of more predictable and neutral arbitration within the partner countries. However, at the stage of establishing the institution, it is important for companies to consider the legal risks associated with procedural uncertainty, recognition of decisions, and possible revision of contractual terms. It is already recommended to monitor the development of the initiative and assess in advance how the potential introduction of the Center may affect the structure of investment and foreign economic agreements.