The Bilateral Investment Treaty (BIT) is the most common type of agreement in private international law to protect the rights and legitimate interests of investors. According to UNCTAD, more than 2,500 bilateral investment agreements have been signed between the two countries to date. The study found that 40 percent of them applied the “Umbrella clause” rule. The article examines the scientific and theoretical views of international economists and jurists, the analysis of existing contracts under the Umbrella clause, as well as international practice in this area, and defines the Umbrella clause rule. The analysis revealed the pros and cons of the "Umbrella Clause" rule, the advantages and disadvantages of law enforcement practice under this rule. The impact of the "Umbrella clause" rule on the outcome of bilateral investment disputes has been evaluated. At the same time, the lack of a uniform approach to the application of contract terms under the "Umbrella clause" rule in international arbitration has been described as a constant source of disagreement. The article discusses the prospects for the application of the “Umbrella clause” rule in bilateral investment agreements.

Umbrella Clause, Bilateral Investment Agreement, International Legal Guarantees

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