216 PKU Transnational Law Review Vol. 2:1 © 2014 Peking University School of Transnational Law Precedent in Investment Arbitration: The Case of Compound Interest Florian Grisel nvestment arbitration is a process through which foreign investors initiate proceedings against States in connec- tion with governmental conducts that would have harmed their investment. Investment arbitration has grown rapid- ly in the past 10 to 15 years. For instance, the International Centre for Settlement of Investment Disputes, or ICSID, has seen its caseload rapidly increases during that time period: ICSID was created in 1966 but approximately 85% of its cases were regis- tered after year 2000. ICSID is now the main recourse for foreign investors against States. In 2009, in the case of Sadio Diallo v. DRC, the International Court of Justice pointed out that ICSID had replaced diplomatic protection as the main legal recourse for foreign investors. 1 The recourse to investment arbitration is therefore expand- ing and investment tribunals adjudicate an increasing number of claims involving various kinds of investors in many geographic places all around the world. The claims that went to investment arbitration in the past include claims brought by the former shareholders of Yukos against Russia for the expropriation of their assets through taxation, 2 claims brought under the North Florian Grisel is a Research Fellow at the Centre National de la Recherche Scientifique (CNRS). His doctoral dissertation (University Paris 1 Panthéon- Sorbonne) was awarded the 2011 Prix de Varenne for the best doctoral thesis in Legal Theory and Philosophy of Law. Application et création du droit en arbitrage international (International Arbitration or Law versus Legal Order Application and Creation of Law in International Arbitration) was published as a book by the Librairie Générale de Droit et de Jurisprudence (LGDJ) in 2011. Florian Grisel also is a graduate of Sciences Po Paris, Université Paris 1 Panthéon-Sorbonne, Columbia University (M.P.A.) and Yale Law School (LL.M.). He currently works on a book project on the judicialization of interna- tional arbitration (in collaboration with Alec Stone Sweet). 1 Ahmadou Sadio Diallo (Guinea v. Dem. Rep. Congo), 2007 I.C.J. 582, ¶88 (May 24). 2 Yukos Universal Ltd. (Isle of Man. v. Russ.), PCA Case No. AA 227, Interim Award of Jurisdiction and Admissibility (Perm. Ct. Arb. 2009), available at http://italaw.com/do-cuments/YULvRussianFederation-InterimAward30 Nov2009.pdf. I