site.btaUPDATED Sofia Hosts Cross Border Investments Conference

Caretaker Justice Minister Mariya Pavlova Tuesday said the advantages of arbitration as an alternative to court proceedings are speed and confidentiality, which are particularly important in commercial relationships. Arbitration cases are executed with relative ease. She addressed the participants in an international conference in Sofia on "Cross Border Investments in a Changing World: Sanctions, Screening and Dispute Resolutions".

The event is organized by the Bulgarian Chamber of Commerce and Industry (BCCI) with support from the European League for Economic Cooperation.

Violations of the rules of international law and peace and human rights violations call for measures restricting international economic relations; this also creates challenges for the executive and the legislature, which must ensure the application of sanctions regimes, Pavlova said.

She recalled that on October 20, 2022, the Council of Ministers set up a Coordination Group on the Implementation of EU Restrictive Measures, and that a law on control of the implementation of those measures has been in force since February 5, 2023. 

Pavlova said the topic of the conference is particularly relevant in contemporary society, and stressed the importance of effective national and international legal mechanisms for a stable and prosperous global economy.

The Justice Ministry's aim and main task is to achieve legal certainty for economic operators through the development of legislation, Pavlova said, adding that international arbitrations are a means of attracting investment and enforcing the rule of law in investment disputes.

Expanding the scope of alternative dispute resolution, including international arbitration, should be encouraged, Pavlova said. She added that raising awareness, training and exchanging experience on the opportunities and challenges of arbitration proceedings is very useful.

BCCI Vice President Vasil Todorov said the issue of cross-border investment is particularly sensitive now, as the net revenue for the first five months of the year decreased by EUR 1.1 billion from a year earlier. Тhe topic of the conference is much broader and goes beyond the local Bulgarian problems. The issue of sanctions, screening and dispute resolution is so complex and fast-changing that it requires not only the state authorities but experts and lawyers as well to make a much greater effort so that Bulgaria can count on successful attraction of investment and risk analysis. He also said the BCCI has systematically and consistently contributed to investment in the economy and to the expansion of alternative dispute resolution.

Branimir Botev, Executive Director of the European Institute for Strategies and Analysis (EISA), said Bulgaria has very serious problems related to investments from screening to implementation to protection by legislation. Although Bulgaria offers attractive general legislative tax conditions, the inflow of foreign investments leaves something to be desired.