NEWSLETTER-2017

194 NEWSLETTER 2017 Conclusion The compensation of moral damages faced in the investment dis- putes are claimed by both investors and host states. Although the ICSID Convention does not prohibit claiming moral damages, arbitral tribunals rarely award so. The main principles required are the exceptional circumstances clarified in Lemire award which was given in consideration of the Desert Line award. Among the case law of the investment disputes before the arbi- tral tribunals, two awards shine out in which the Republic of Turkey requested compensation for the moral damages faced as the host state. These disputes have distinctive character as the moral damages were claimed by the host state rather than the investor and the damages are grounded on the abuse of process faced during the arbitral proceedings rather than an illegal action arose during the investment process.