International energy contracts and cross-border pipeline projects: stabilization, renegotiation and economic balancing in changed circumstances - some recent trends

In contractual practice freezing and economic balancing provisions, i.e. classic and modern stabilization clauses, are often employed together or sometimes individually, i.e. one or the other. In some cases, where they are employed together, the economic balancing provision lays down the outcome of the host State's breach of the promise contained in the freezing clause that it makes to the contracting partner. This does not, however, mean that a freezing clause is not workable on its own.