The French state is being sued by two Russian investment companies (controlled by a sanctioned oligarch) through a confidential Investor-State Dispute Settlement (ISDS) procedure, in connection with the “Montagne d’Or” mining megaproject in French Guiana. The investors are reportedly claiming over $4.5 billion in compensation, marking the first major investment arbitration case against France.

The complaint was initiated in 2021 on the basis of the 1989 France-Russia bilateral investment treaty, following the French government’s withdrawal of support for the project, which was deemed in 2019 by the Ecological Defence Council to be incompatible with the environmental standards set by the executive.

This case arises in a context of growing tension between the obligation to protect foreign investments and the need to safeguard the environment. It raises questions about the ability of states to redefine their priorities in terms of sustainable development and ecological transition, given the commitments made under investment treaties.