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Montenegro signs ICSID Convention

The signing ceremony which took place on 19 July 2012 was attended by Srdjan Darmanović, Ambassador of Montenegro to the United States and Marija Petrović, First Secretary of the Embassy of Montenegro to the United States and, on behalf of the Convention, by Meg Kinnear, Secretary-General of ICSID.

Just weeks after beginning EU accession talks, Montenegro has signed the ICSID Convention.

The signing ceremony which took place on 19 July 2012 was attended by Srdjan Darmanović, Ambassador of Montenegro to the United States and Marija Petrović, First Secretary of the Embassy of Montenegro to the United States and, on behalf of the Convention, by Meg Kinnear, Secretary-General of ICSID.

In accordance with Article 75 of the ICSID Convention, all ICSID signatory states were notified by the World Bank of Montenegro’s signature.

Montenegro thus joins ten other states that have signed the ICSID Convention but have yet to deposit their instruments of ratification, acceptance or approval.

The latest signature brings the number of states that have signed the Convention to 159.

According to Article 68 of the ICSID Convention, the Convention will enter into force for Montenegro 30 days after it deposits an instrument of ratification, acceptance or approval. It remains to be seen how fast Montenegro will do so.

While a number of new States eager to join the EU have recently taken to signing the ICSID Convention, there has also been a rise in denunciations of the Convention in South America. Bolivia and Ecuador have already withdrawn from the ICSID Convention, and on 24 January 2012, Venezuela announced its wish to do the same after having submitted a written notice of denunciation to the World Bank as required by Article 71 of the ICSID Convention. In accordance with the same provision, this denunciation will take effect six months after its submission. There are currently 24 pending ICSID cases against Venezuela and rumours abound that Venezuela is planning to renegotiate or cancel the 24 Bilateral Investment Treaties to which it is currently a party.