Foreign Sovereign Immunity: India, Venezuela, BIT, expropriation
On October 3, 2025, the United States Court of Appeals for the District of Columbia Circuit released two noteworthy decisions:
Helmerich & Payne Internationale Drilling Co. v. Petroleos de Venezuela S.A. on alter ego in the context of foreign expropriations and the domestic recourse under theories and law of sovereign immunity and exceptions thereto;
and
Deutsche Telekom AG v. Republic of India on the recognition and enforcement of a Swiss arbitral award in the United States under a bilateral investment treaty after an investment made by the company, and subsequently by the Republic, in an Indian enterprise, triggering the issue of the extension of an arbitration clause to the Republic under the U.S. Foreign Sovereign Immunities Act and its exceptions.
Sun, / Embassy Law Link
No Constitutional Protection for States
The Supreme Court of the United States in Washington, DC, held that the protection afforded defendants in civil cases under the United States constitution's International Shoe Co. v. Washington principle of mininum contacts with the forum is unavailable in actions under the Foreign Sovereign Immunities Act. As a result of the decision in the matter CC/Devas (Mauritius) Ltd. v. Antrix Corp. from June 5. 2025, defending against suits against foreign nations and their agencies and other instrumentalities will be harder in the United States. -- By Clemens Kochinke, attorney at law advising embassies, of Berliner Corcoran & Rowe LLP, Washington, DC.
Wed, / Embassy Law Link
Relief from Congestion Charges: Foreign Missions Act
The Metropolitan Transportation Authority of New York imposes a Congestion Relief Zone charge on certain traffic in New York City. The charge may conflict with certain international obligations of the United States under the Vienna treaties for embassies and consulates.
The State Department has determined that the treaty rules apply to such charges, and similar to exemptions for certain taxes imposed by host counties, an exemption will apply to the congestion charge. It states:
I hereby designate as a benefit for purposes of the Act exemption from charges assessed by the Metropolitan Transportation Authority of New York for entry into its designated ``Congestion Relief Zone'' for foreign missions and certain international organizations. This benefit extends to members and personnel of and representatives to such foreign missions and international organizations who enjoy certain tax-free privileges as determined by the Office of Foreign Missions and may be extended to vehicles bearing diplomatic and consular license plates issued by the Office of Foreign Missions.
I determine that such exemption shall be provided to such foreign missions and international organizations on such terms and conditions as may be approved by the Office of Foreign Missions and that any state or local laws to the contrary are hereby preempted.
This action is necessary to protect the interests of the United States, including with respect to fulfilling its international and domestic legal obligations and ensuring similar exemptions for U.S. missions and mission members abroad, and to facilitate relations between the United States and foreign states and relations between the United States and international organizations.
The exemption from charges assessed by the Metropolitan Transportation Authority of New York for entry into its designated "Congestion Relief Zone" provided by this designation and determination shall apply to charges that have been or will be assessed against any foreign mission or international organization subject to this determination.
Sat, / Embassy Law Link
Comments Invited on new FARA Regulations
On January 2, 2025, the United States Department of Justice announced new guidelines for reporting political activities of foreign states and political organizations. The new guidelines, entitled Amending and Clarifying Foreign Agents Registration Act (FARA) Regulations, are in draft form and open to the public for comment until March 3, 2025.
The original statute was intended to provide transparency to Americans about the influence of foreign states in American politics, and is being updated to address the threats of the modern day.
The focus of the updates are exemptions for non-political actors, such as embassies and charitable organizations, from typical reporting requirements. Regardless of their commercial status or foreign status, many parties will now be exempt from reports under the FARA law, with certain types of acts and actors not exempt.
Under the proposed rule changes, parties that exist on behalf of or to benefit the interests of a foreign government or political party will not be exempt. Agents that work with foreign organizations such as embassies will now be exempt unless their actions are primarily directed towards increasing the influence or political goals of foreign governments or political parties. By John Capwell, legal assistant, Berliner Corcoran & Rowe LLP, Washington, DC.
Thu, / Embassy Law Link