lOMVfISSION DER EUROPÄISCHEN GEMEINSCHAFTEN 
K0M(94) 405 endg. 
Brüssel, den 21.09.1994 
94/0214 (CNS) 
MITTEILUNG DER KOMMISSION AN DEN RAT UND DAS EUROPÄISCHE PARLAMENT 
zur Unterzeichnung und vorläufigen Anwendung des Vertrages über 
die Europäische Energiecharta durch die Europäischen Gemeinschaften 
VORSCHLAG FÜR EINEN 
BESCHLUSS DES RATES 
ÜBER DIE UNTERZEICHNUNG DES VERTRAGES 
ÜBER DIE EUROPÄISCHE ENERGIECHARTA 
UND SEINE VORLÄUFIGE ANWENDUNG 
DURCH DIE EUROPÄISCHE GEMEINSCHAFT 
(von der Kommission vorgelegt) 94/0214 (CNS) 
Entwurf für einen 
BESCHLUSS DES RATES UNP PER KOMMISSION 
ÜBER DIE UNTERZEICHNUNG DES VERTRAGES 
ÜBER DIE EUROPÄISCHE ENERGIECHARTA 
UND SEINE VORLÄUFIGE ANWENDUNG 
DURCH DIE EUROPÄISCHE GEMEINSCHAFT FÜR 
KOHLE UND STAHL UND DIE EUROPÄISCHE ATOMGEMEINSCHAFT 
MITTEILUNG DE« KOMMISSION AN DEN RAT UND DAS EUROPÄISCHE PARLAMENT 
zur Unterzeichnung und vorläufigen Anwendung des Vertrages über 
die Europäische Energiecharta durch die Europäischen Gemeinschaften 
1. Am 14. September 1994 hat der Präsident der Verhandlungskonferenz der Europäischen 
Energiecharta den an den Verhandlungen beteiligten Parteien die Entwürfe des Vertrages 
und der Schlußakte übermittelt, über die nach der Unterzeichnung der Europäischen 
Energiecharta im Dezember 1991 drei Jahre lang verhandelt worden war. 
2. Im Anhang zu dieser Mitteilung wird der Vertrag näher unter die Lupe genommen. 
Nach Auffassung der Kommission liegt die Unterzeichnung des Vertrages im Interesse 
der Europäischen Gemeinschaft, da sie zum einen angesichts der rückläufigen 
Kohleförderung in Europa und der rückläufigen Investitionen in die Kernenergie in 
zunehmenden Maße von der Einfuhr von Energieerzeugnissen abhängt und da zum 
anderen die wirtschaftliche Kooperation zwischen der Europäischen Union und den 
osteuropäischen Ländern intensiviert werden muß, um die wirtschaftliche und soziale 
Entwicklung in diesen Ländern zu fördern und die Umweltverträglichkeit der 
Energiewirtschaft sicherzustellen. 
3. Die Unterzeichnung dieses Vertrages impliziert nach Artikel 45 seine vorläufige 
Anwendung durch die Vertragsparteien. Deshalb schlägt die Kommission dem Rat vor, 
den Vertrag zu unterzeichnen und ihn vorläufig anzuwenden, und sie unterbreitet ihm 
hierzu einen dem EG-Vertrag entsprechenden Beschlußvorschlag sowie den Entwurf eines 
Beschlusses der Kommission im Sinne des EGKS-Vertrages und des EURATOM-
Vertrages, zu dem die Stellungnahme des Rates erforderlich ist. 
4. Nach Auffassung der Kommission muß das Parlament zu dem Beschlußvorschlag über 
die Unterzeichnung und die vorläufige Anwendung konsultiert werden. Die endgültige 
Annahme des Vertrages setzt wegen der institutionellen Implikationen die Zustimmung 
des Parlaments nach Artikel 228 (3) Paragraph 2 voraus. Nach Auffassung der 
Kommission kann jedoch zur vorläufigen Anwendung des Vertrages ein flexibleres 
Verfahren angewendet werden, und es wird deshalb vorgeschlagen, das Parlament um eine 
einfache Stellungnahme zu ersuchen entsprechend dem Verfahren, das bei der 
provisorischen Inkraftsetzung der Vereinbarung über die Einrichtung eines internationalen 
Zentrums für Wissenschaft und Technologie in Moskau befolgt worden ist (Verordnung 
des Rates Nr. 500/94 vom 21. Februar 1994). 
5. Die Kommission ist der Meinung, daß die Unterzeichnung des Vertrages durch die 
Gemeinschaft und seine vorläufige Anwendung eine wichtige Etappe auf dem Wege zum 
Ausbau der Zusammenarbeit mit den Ländern Mittel- und Osteuropas und den Ländern 
der GUS darstellt. Zunächst einmal bringt der Vertrag erhöhte Rechtsicherheit für 
Investoren, indem er ihnen den Vorteil der Inländerbehandlung einräumt, macht er bei der 
Behandlung der Investitionen Transparenz zur Pflicht und gibt er den Verbraucherländern 
Versorgungsgarantien. Sodann beinhalten die. Modalitäten der Umsetzung (Sekretariat, 
Ministerkonferenz, Anerkennung der Arbritragenmechanismen) gewisse 
17/0153/94 DE, Orig. FR 
als/sd 
Überwachungsgarantien. Gewiß bedarf der Vertrag noch der Nachbesserung insoweit, als 
er für neue Investoren nur eine begrenzte Rechtsgarantie gewährleistet 
(Vorinvestitionsphase); diese Situation wurde einerseits hingenommen, um das Entstehen 
von Ausnahmelisten zu vermeiden, die von den Ländern des Ostens - angesichts der 
heutigen noch in Bewegung befindlichen Gesetzgebung - unweigerlich eingeführt worden 
wären, und andererseits, weil die Verpflichtung festgeschrieben wurde, ab Januar 1995 
mit der Aushandlung eines zweiten Vertrages über die Vorinvestitionsphase zu beginnen. 
6. Die Kommission schlägt dem Rat deshalb vor, 
den beigefügten Beschluß zur Unterzeichnung und vorläufigen Anwendung durch 
die Europäische Gemeinschaft zu verabschieden, 
seine Befürwortende Stellungnahme zu dem Entwurf eines Beschlusses der 
Kommission gemäß den Bestimmungen des EGKS-Vertrages nach Übermittlung 
der Stellungnahme des beratenden Ausschusses der EGKS abzugeben, 
den Entwurf eines Beschlusses der Kommission gemäß den Bestimmungen des 
EURATOM-Vertrages gutzuheißen. 
17/0153/94 DE, Orig. FR 
als/sd 
Überwachungsgarantien. Gewiß bedarf der Vertrag noch der Nachbesserung insoweit, als 
er für neue Investoren nur eine begrenzte Rechtsgarantie gewährleistet 
(Vorinvestitionsphase); diese Situation wurde einerseits hingenommen, um das Entstehen 
von Ausnahmelisten zu vermeiden, die von den Ländern des Ostens - angesichts der 
heutigen noch in Bewegung befindlichen Gesetzgebung - unweigerlich eingeführt worden 
wären, und andererseits, weil die Verpflichtung festgeschrieben uurde, ab Januar 1995 
mit der Aushandlung eines zweiten Vertrages über die Vorinvestitionsphase zu beginnen. 
6. Die Kommission schlägt dem Rat deshalb vor, 
den beigefügten Beschluß zur Unterzeichnung und vorläufigen Anwendung durch 
die Europäische Gemeinschaft zu verabschieden, 
seine Befürwortende Stellungnahme zu dem Entwurf eines Beschlusses der 
Kommission gemäß den Bestimmungen des EGKS-Vertrages nach Übermittlung 
der Stellungnahme des beratenden Ausschusses der EGKS abzugeben, 
den Entwurf eines Beschlusses der Kommission gemäß den Bestimmungen des 
EURATOM-Vertrages gutzuheißen. 
Deshalb ist es zweckmäßig, den Vertrag im Namen der Europäischen Gemeinschaft 
vorbehaltlich seines späteren Abschlusses zu unterzeichnen und ihn gemäß seinen 
Bestimmungen unbeschadet des für seinen späteren Abschluß erforderlichen Verfahrens 
vorläufig anzuwenden -
BESCHLIESST: 
Artikel 1 
1. Der Vertrag über die Europäische Energiecharta wird von der Europäischen 
Gemeinschaft vorbehaltlich seines späteren Abschlusses unterzeichnet. 
2. Der Präsident des Rates ist ermächtigt, die Person(en) zu benennen, die befugt ist 
(sind), den Vertrag zu unterzeichnen. 
3. Der Wortlaut des Vertrages ist diesem Beschluß als Anlage beigefügt. 
Artikel 2 
Der Vertrag über die Europäische Eneriecharta wird ab seiner Unterzeichnung vorläufig 
angewandt. 
Geschehen zu Brüssel am 
VORSCHLAG FUR EINEN 
BESCHLUSS DES RATES UND DER KOMMISSION VOM 
ÜBER DIE UNTERZEICHNUNG DES VERTRAGES 
ÜBER DIE EUROPÄISCHE ENERGIECHARTA 
UND SEINE VORLAUFIGE ANWENDUNG 
DURCH DIE EUROPÄISCHE GEMEINSCHAFT FÜR 
KOHLE UND STAHL UND DIE EUROPÄISCHE ATOMGEMEINSCHAFT 
DER RAT DER EUROPÄISCHEN UNION 
DIE KOMMISSION DER EUROPÄISCHEN GEMEINSCHAFTEN -
gestützt auf den Vertrag über die Gründung der Europäischen Gemeinschaft fur Kohle 
und Stahl, insbesondere auf Artikel 95 Absatz ls 
gestützt auf den Vertrag zur Gründung der Europäischen Atomgemeinschaft, insbesondere 
auf Artikd 101 Absat2 2, 
mit dnmütiger Zustimmung des Rates, 
nach Anhörung des Beratenden Ausschusses der EGKLS und des Europäischen Parlaments, 
gestützt auf dnen von der Kommission vorgelegten Vorschlag für einen Beschhiss des 
Rates 
in Erwägung nachstehender Gründe: 
Die Europäische Energiecharta ist am 17. Dezember 1991 von der Europäischen 
Gemeinschaft und ihren Mitgliedstaaten unterzdchnet worden. 
Alle Unterzdchner der Europäischen Energiecharta haben sich verpflichtet, dnen Vertrag 
über die Energiecharta auszuhandeln, um den in der Charta aufgeführten Verpflichtungen 
einen international gesicherten und rechtsverbindlichen Rahmen zu geben. 
Die Europäische Energiechaita ist fur die Zukunft Europas von grundlegender Bedeutung; 
sie bildet eine dnzigartige Möglichkdt fur die Mitgliedstaaten der GUS und die Länder 
Mittd- und Osteuropas, ihr energjewirtschaftliches Potential auszubauen und so zur 
Erhöhung der Energieversorgungssicherhdt beizutragen. 
Es gilt, den europäischen Charakter der Initiative und die zentrale Rolle, die die 
Gemeinschaft hierbei gespielt hat, zu bewahren und zu festigen. 
Die Unterzdchnung und vorläufige Anwendung des Vertrages über die Energiecharta 
werden zur Verwirklichung der Ziele der Gemeinschaften (EGKS und EAG) beitragen, 
und die von diesem Vertrag festgelegten Maßnahmen gehen über die Zuständigkdten der 
EGKS, wie an anderem Ort als in Artikel 95 definiert hinaus. 
Deshalb ist es zweckmäßig, den Vertrag im Namen der EGKS und der EAG vorbehaltlich 
seines späteren Abschlusses zu unterzeichnen und ihn gemäß sdnen Bestimmungen 
unbeschadet des für seinen späteren Abschluß erforderlichen Verfahrens vorläufig 
anzuwenden -
BESCHLÜSSEN : 
Artikel 1 
1. Der Vertrag über die Europäische Energiecharta wird von der Europäischen 
Gemeinschaft fur Kohle und Stahl und von der Europäischen Atomgemeinschaft 
vorbehaltlich seines späteren Abschlusses unterzeichnet. 
2. Der Wortlaut des Vertrages ist in der Anlage beigefugt. 
Artikel 2 
Der Vertrag wird ab seiner Unterzeichnung vorläufig angewandt. 
Geschehen zu Brüssel am 
(o 
ANLAGE 
ZUSAMMENFASSUNG DES INHALTES 
DES EUROPÄISCHEN ENERGIECHARTA VERTRAGS 
Der Gedanke einer europäischen Energiegemeinschaft wurde erstmals am 25. Juni 1990 
auf dem Europäischen Rat von Dublin von Premierminister Lubbers vorgetragen. Es geht 
darum, die nötige Technologie sowie das vorhandene Know-how und Kapital für den 
Dienst der Erkundung, Erschließung und Nutzung der Öl- und Gasvorkommen in den 
Ländern Mittel- und Osteuropas (MOEL), insbesondere in den neuerdings unabhängigen 
Republiken der ehemaligen Sowjetunion, GUS, sicher zu stellen. Dies würde zur 
wirtschaftlichen Entwicklung dieser Länder beitragen, während die Versorgung der 
Verbraucherländer mit Öl und Gas sicherer werden wird. Der Energiesektor wurde für 
ein solch ehrgeiziges Vorhaben gewählt, weil in diesem Bereich die besten Aussichten 
bestehen, für beide Seiten rasch zu handfesten wirtschaftlichen Ergebnissen zu gelangen. 
Die Konferenz über Sicherheit und Zusammenarbeit in Europa (KSZE) signalisierte am 
19.-21. November 1990 in Paris ihre Unterstützung für den Lubbers-Plan: Lubbers und 
Delors schlugen gemeinsam die Einsetzung einer Konferenz vor, auf der die von der 
Kommission entworfene Europäische Energiecharta verhandelt werden sollte. 
DIE ENERGIECHARTA : EINE POLITISCHE VERPFLICHTUNG 
Die Verhandlungen fanden in der zweiten Hälfte des Jahres 1991 statt. Beteiligt waren 
alle europäischen Nationen einschließlich der MOEL und der GUS. Nach längeren 
Erörterungen im Rat für allgemeine Angelegenheiten im Juni 1991 wurden auch die 
USA (aufgrund ihrer nachdrücklich vorgebrachten Bitte) und die anderen 
nichteuropäischen Mitglieder der OECD zur Konferenz eingeladen. Nach dem 
Schlußdokument der Haager Konferenz über die Europäische Energiecharta einigten sich 
die Vertreter von 48 Staaten und der EG am 17. Dezember 1991 auf die Ziele und 
Grundsätze der Charta. 
Die Ziele der Charta sind breit angelegt: Verbesserung der Versorgungssicherheit, 
höchstmöglicher Wirkungsgrad bei der Produktion, Umwandlung, Beförderung, 
Verteilung und Nutzung von Energie, erhöhte Sicherheit und geringstmögliche 
Schädigung der Umwelt. 
Diesen Zielsetzungen entsprechen vier Grundsätze, die den Rahmen bilden: 
1) Der Grundsatz, daß der Staat Souverän über die Naturschätze bleibt, 
2) der Grundsatz der Nichtdiskriminierung, 
3) der Grundsatz marktgerechter Preisgestaltung und 
4) der Grundsatz der Minimierung der Umweltbelastung. 
Die Charta beschreibt im einzelnen, wie die oben aufgestellten Ziele in den acht 
Aktionsfeldern umgesetzt werden sollen: 
Zugang zu den Energievorkommen und deren Erschließung, 
Zugang zu den Märkten, 
Liberalisierung des Handels mit Energieerzeugnissen, 
Förderung und Schutz von Investitionen, 
Sicherheitsgrundsätze und -leitlinien, 
Forschung und technologische Entwicklung, Innovationen und Verbreitung, 
Energieeffizienz und Umweltschutz, 
Erziehung und Ausbildung. 
DER ENTWURF DER EUROPAISCHEN ENERGIECHARTA 
In der Charta verpflichten sich die Unterzeichner, die Ziele und Grundsätze der Charta 
zu verfolgen und ihre Zusammenarbeit sobald wie möglich zu verwirklichen, indem sie 
in gutem Glauben einen Vertrag aushandeln. 
Anders als die Charta, die eine politische Absichtserklärung darstellt, soll der Veitrag 
rechtsverbindlich werden und für alle Vertragsparteien Rechte und Pflichten schaffen. 
Der Vertrag besteht aus einer Präambel und rund 50 Artikeln, er gliedert sich in acht 
Teile und wird durch mehrere Anhänge ergänzt. Zusätzlich haben sich die 
Vertragsparteien verpflichtet, zwei sektorenbezogene Protokolle - über Energieeffizienz 
und nukleare Sicherheit - auszuhandeln. 
DER INHALT DER ENERGIECHARTA 
Der Vertrag legt fest, daß der Handel mit Energieerzeugnissen zwischen den 
Vertragsparteien den Bestimmungen des Zoll- und Handelsabkommens (GATT) und den 
abgeleiteten Rechtsakten unterworfen ist. Dies gilt auch für Vertragsparteien, die nicht 
Vertragsparteien des GATT sind. Für diese Vertragsparteien sieht die Charta mutatis 
mutandum die Anwendung der GATT Bestimmungen vor. 
Eine spezifische Ausnahme von der allgemeinen "GATT-by-Reference"-Behandlung des 
Chartavertrags für nuklearen Handel ist möglich; Rußland und EG haben der Anwendung 
von Artikel 22 des Partnerschaftsabkommens im Chartarahmen zugestimmt. Hierfür 
besteht keine zeitliche Grenze, aber - in Übereinstimmung mit Artikel 22 des 
Partnerschaftsabkommens - wurde die Möglichkeit einer weiteren, künftigen 
Vereinbarung über den nuklearen Handel zwischen Rußland und der EG eingeräumt. 
Eine ähnliche Lösung ist mit den anderen Republiken der GUS vorgesehen. 
Es sei besonders darauf hingewiesen, daß die von einigen Mitgliedstaaten im Rahmen 
des EGKS-Vertrages gewährten Subventionen zum Schutz ihres inländischen 
Kohlenbergbaus gebührend geschützt worden sind. 
Der Vertrag erkennt auch die Hoheit des Staates über die Energievorkommen an und 
schreibt insbesondere fest, daß jeder Staat das Recht behält, zu entscheiden, welche 
geographischen Gebiete in seinem Hoheitsgebiet für die A uf suche und Erschließung 
seiner Energievorkommen zur Verfügung gestellt werden und wie und in welchem 
Tempo diese Vorkommen abgebaut oder auf andere Weise erschlossen werden sollen. 
Die Vertragsparteien werden sich jedoch verpflichten, den Zugang zu den Vorkommen 
zu erleichtern und deshalb für Spielregeln über Erkundung, Erschließung und Erwerb von 
Energieressourcen sorgen, die transparent und nichtdiskriminierend sind. 
Der Vertrag sichert auch den Zugang zu den Märkten aller Vertragsparteien, wobei dem 
Erfordernis Rechnung getragen wird, daß den Marktkräften Spielraum eingeräumt und 
der Wettbewerb gefördert werden. 
Parallel mit der Handelsregelung stellt der Vertrag sicher, daß Ländern und Investoren 
der Transit durch dritte Länder offensteht, wenn sie ihre Energie nach Exportmärkten 
weiterleiten wollen. Hier legt der Vertrag fest, daß jedes betroffene Land die 
notwendigen Maßnahmen treffen muß, die einen derartigen Transit zum Beispiel über 
Gas- und Elektrizitätsverbundnetze erleichtern. Insbesondere wird ihnen untersagt, den 
Energiefluß im Falle von Streitigkeiten über die Transitbedingungen zu unterbrechen, bis 
eine gütliche Lösung gefunden ist bzw. ein Schiedsgerichtsurteil vorliegt. 
Die Förderung und der Schulz von Investitionen galt immer als ein Hauptelement der 
Verhandlung. Artikel 13, der hierzu die Schlüsselbestimmungen enthält, stellt auf die 
Förderung von Investitionen ab und legt den Standard für die Behandlung ausländischer 
Investoren fest. Die Vertragsparteien werden verpflichtet, für dauerhafte, gerechte, 
günstige und transparente Bedingungen für ausländische Investitionen in ihrem Gebiet 
zu sorgen. 
Der Grundsatz der Inländerbehandlung war einer der umstrittensten Verhandlungspunkte. 
Wenn eine Vertragspartei der Inländerbehandlung zugestimmt hat, muß sie ausländische 
Gesellschaften und Investoren genau wie ihre Staatsangehörigen bzw. inländischen 
Firmen behandeln. 
Beim Abschluß der Verhandlungen hatten sich alle Vertragsparteien auf den Grundsatz 
der Inländerbehandlung nach erfolgter Investition, also in der Phase, wo die Nutzung 
stattfindet, geeinigt. Größere Meinungsverschiedenheiten herrschten dagegen noch in der 
Frage, ob die Inländerbehandlung in der Vor-Investitions -Phase gelten könne, also in 
der Phase, wo Grundstücke und Anlagen erworben, Lizenzen eingeholt werden usw. 
Gewisse Ausnahmen von der vollen Inländerbehandlung in der Vor-Investitions-Phase 
wurden zugestanden, diese müssen aber eindeutig in einem Anhang vermerkt sein. Sie 
unterliegen einem Moratorium und wo möglich einer Rekursionsklausel. Rußland stellte 
klar, es sei nicht in der Lage, eine definitive Liste von Ausnahmen vorzulegen, da eine 
nationale Gesetzgebung noch ausstehe. 
Um sich nicht festzufahren, schlug die EG ein Vorgehen in zwei Stufen vor. Jede Stufe 
stellt demnach eine vollständige selbständige Vereinbarung dar, die nach den nationalen 
Verfahren ratifiziert werden muß. 
Die Vereinbarung der ersten Stufe enthält alle Artikel des Vertrages, über die Einigung 
erzielt werden konnte, nämlich Handel, Transit, Zugang zu internationalen 
Streitbeilegungsverfahren, Inländerbehandlung für Investitionen in der Post-Investitions-
Phase. Investitionen in der Vor-Investitions-Phase erhalten die beste inländische 
Behandlung oder Meistbegünstigung auf freiwilliger Basis ("Best Efforts"). 
Das Endziel der zweiten Stufe ist in der Vereinbarung der Stufe 1 bereits festgelegt: Alle 
Unterzeichner der letzteren verpflichten sich, die Inländerbehandlung auf die Vor-
Investitions-Phase anzuwenden, sobald sie die "Vereinbarung der Stufe 2" unterzeichnen. 
Die Unterzeichner werden binnen drei Jahren (beginnend am 1.1.1995) in Verhandlungen 
klären, unter welchen Bedingungen der Grundsatz der Inländerbehandlung in der 
Vorinvestitionsphase gelten soll und welche grundsätzlichen Ausnahmen hiervon erlaubt 
sein sollen. Die Verhandlungen sollten darauf hinauslaufen, daß die Zahl der dann noch 
für erforderlich angesehenen Ausnahmen, die ihre Rechtsvorschriften (wenn überhaupt) 
zulassen, auf ein Minimum beschränkt werden. 
In diesem Dreijahreszeitraum kann sich eine Vertragspartei jederzeit freiwillig 
verpflichten, Investoren anderer Vertragsparteien Inländerbehandlung bzw. 
Meistbegünstigung - je nachdem, was günstiger ist - zu gewähren. 
Der Vertrag setzt zwei Organe ein, die Chartakonferenz und das Sekretariat. Die 
Chartakonferenz, die regelmässig zusammentritt, ist das einzige Gremium, das 
Entscheidungen fällt, und zwar in folgenden Angelegenheiten : Erledigung von 
Aufgaben, die der Vertrag zuweist, Überwachung und Förderung der Umsetzung des 
Vertrages, Koordinierung aller Massnahmen im Einklang mit dem Vertrag, 
Verabschiedung von Arbeitsprogrammen, die das Sekretariat durchzuführen hat, 
Feststellung der Jahresabrechnung und des Budgets des Sekretariats, Genehmigung der 
Aushandlung und Annahme von Protokollen, Annahme von Änderungen zum Vertrag, 
Bestellung des Generalsekretärs und Treffen aller Entscheidungen zur Einrichtung und 
zur Arbeitsweise des Sekretariats. 
Ausserdem muss die Chartakonferenz mit anderen Insitutionen und internationalen 
Organisationen im Energiebereich zusammenarbeiten und deren Dienstleistungen und 
Programme soweit irgend sinnvoll nutzen. Jede Vertragspartei kann einen Vertreter in 
die Chartakonferenz entsenden. 
Das Sekretariat besteht aus dem Generalsekretär und einem Minimum an Personal, wie 
es zum effizienten Arbeiten erforderlich ist. Es unterstützt die Chartakonferenz bei der 
Erfüllung ihrer Aufgaben. Es bleibt selbst klein, kann aber einen Teil seiner Arbeit an 
Vertragnehmer (externe Institutionen) delegieren. 
Umweltaspekte 
Speziell kommt der Umweltschutz zur Sprache in Artikel 22. Dieser Artikel besagt, daß 
die Vertragsparteien Vorsorge treffen müssen, um die Umwelt nicht mehr als unbedingt 
notwendig zu belasten. Es soll in umweltgerechter und wirtschaftlich effizienter Weise 
vorgegangen werden. Grundsätzlich haftet der Verursacher für die von ihm angerichteten 
Schäden. Es werden Ziele aufgeführt, die in der Umweltschutzpolitik der 
Vertragsparteien zu berücksichtigen sind. 
ID 
Protokoll zur Energieeffizienz 
Zusätzlich zu den im Vertrag selbst enthaltenen Bestimmungen zum Umweltschutz, 
wurde ein spezifisches Protokoll zur Energieffiezienz ausgehandelt. Dieses Protokoll 
legt ausführlich Massnahmen zur Verbesserung von Energieeffizienz und zur Förderung 
von Energieeinsparungen dar. Das Hauptziel dieses Protokoll ist zu sichern, dass 
Aktivitäten im Energiebereich, von Gewinnung bis Endverbrauch, in Einklang mit dem 
Umweltschutz ausgeführt werden und die Umwelt so wenig wie möglich belasten. 
Beteiligung der EG am Vertrag 
Der Vertrag sieht ausdrücklich den Beitritt von Staaten und Organisationen eines 
regionalen Wirtschaftszusammenschlusses (REIO) selbstverständlich nach 
Unterzeichnung der Charta - vor. 
Die EG hat eine Anzahl Stimmen, die der Zahl ihrer Mitgliedstaaten, die Vertragspartei 
des Vertrages sind, entspricht Sie übt ihr Wahlrecht nich aus, wenn es die 
Mitgliedstaaten tun und vice versa 
Eine spezielle Klausel wurde eingeführt um die bestehende Gesetzgebung der 
Gemeinschaft und ihren beweglichen Charakter zu schützen. 
Streitbeilegungsverfahren 
In Teil V des Vertrages geht es hauptsächlich um die Beilegung von Streitigkeiten; dies 
ist eines der Kernstücke des Vertrages. Es wird unterschieden zwischen Streitigkeiten 
zwischen Vertragsparteien und Streitigkeiten zwischen einem Investor und einer 
Vertragspartei. 
1. Streitigkeiten zwischen Vertragsparteien betreffend den Handel sind, wenn sie 
Vertragsparteien des GATT sind, dessen Streitbeilegungsverfahren unterworfen. 
Wenn eine oder mehrere der am Streit beteiligten Parteien nicht GATT-Mitglieder 
sind, wird der Streitfall einer GATT-ähnlichen Ad-hoc-Regelung unterworfen. 
Für Streitfälle betreffend die Anwendung oder Auslegung dieses Vertrags sind Ad-
hoc-Bestimmungen vorgesehen. 
2. Für Streitigkeiten zwischen einer Vertragspartei und einem Investor werden in 
Artikel 30 mehrere Mechanismen zur Option gestellt. Darüber hinaus sieht 
Artikel 30 die bedingungslose Zustimmung der Vertragsparteien zur 
Inanspruchnahme internationaler Schiedsverfahren vor. 
Die Mechanismen zur Beilegung von Streitigkeiten, wie sie im Vertrag enthalten sind, 
vergleichen sich auf günstige Weise mit dem, was andere Verträge enthalten. Der 
Umstand, daß sie für viele Unstimmigkeiten endgültige, verbindliche Lösungen vorsehen, 
verdient hervorgehoben zu werden. 
Übergangsvereinbarungen 
Der Vertrag sieht vor, daß nach seiner Unterzeichnung und Ratifizierung nicht alle 
Bestimmungen sofort für alle Unterzeichner in gleicher Weise anwendbar sind. Länder 
im Übergang, die Zeit für die Anpassung an die Marktwirtschaft benötigen, können von 
Übergangsregelungen Gebrauch machen. 
Diese können in bezug auf eine begrenzte Anzahl von Bestimmungen in Anspruch 
genommen werden, einschliesslich den Konkurrenz -und Transitbestimmungen. Jeder 
Antrag auf Geltendmachung von Übergangsmaßnahmen muß angeben: 
1) die Artikel, denen ein Staat noch nicht entsprechen kann, 
2) die objektiven Gründe hierfür, 
3) die Natur der Übergangsmaßnahmen, > 
4) die Dauer der Übergangsmaßnahmen, 
5) die von einem Staat ergriffenen bzw. geplanten Maßnahmen, um allen 
Vertragspflichten sobald wie möglich in vollem Umfang nachzukommen. 
Natürlich sollte die Dauer der Übergangsmaßnahmen so kurz wie möglich gehalten 
werden. Darum haben die Vertragsparteien sich auf den 1.7.2001 als Zieltermin 
verständigt, von dem ab die Erfüllung der Vertragspflichten gewährleistet sein soll. 
Tragweite des Vertrages 
Wie die Dinge jetzt stehen, gilt der Vertrag nur für die Energieerzeugnisse nach 
Artikel 1 Absatz 4. Die Entscheidung wurde vorerst aufgeschoben. Sie wird später in 
Form eines Protokolls auszuhandeln sein, nachdem der Vertrag unterzeichnet ist. 
Inkrafttreten 
Der Vertrag tritt in Kraft nachdem er von 30 Unterzeichnern ratifiziert wurde. In der 
Zwischenzeit ist eine Bestimmung über die vorläufige Anwendung des Vertrages durch 
die Unterzeichner vorgesehen, insoweit als dies aufgrund ihrer Verfassung, Gesetze und 
Verordnungen zulässig ist. 
\L 
14 September 1994 
FINAL ACT OF THE EUROPEAN 
ENERGY CHARTER CONFERENCE 
The final Plenary Session of the European Energy Charter 
Conference was held at Lisbon on 16-17 December 1994. 
Representatives of Albania, Armenia, Australia, Austria, 
Azerbaijan, Belgium, Belarus, Bulgaria, Canada, Croatia, Cyprus, 
the Czech Republic, Denmark, Estonia,, the European Community, 
Finland, France, Georgia, Germany, Greece, Hungary, Iceland, 
Ireland, Italy, Japan, Kazakhstan, Kyrghyzstan, Latvia, 
Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, the 
Netherlands, Norway, Poland, Portugal, Romania, the Russian 
Federation, Slovakia, Slovenia, Spain, Sweden, Switzerland, 
Tadjikistan, Turkey, Turkmenistan, Ukraine, the United Kingdom, 
the United States, of America and Uzbekistan (hereinafter 
referred to as "the representatives") participated in the 
Conference, as did invited observers from certain countries and 
international organizations. 
BACKGROUND 
During the meeting of the European Council in Dublin in June 
1990, the Prime Minister of the Netherlands suggested that 
economic recovery in Eastern Europe and the then Soviet Union 
could be catalysed and accelerated by co-operation in the energy 
- 2 
sector. This suggestion was welcomed by the Council, which 
invited the Commission of the European Communities to study how 
best to implement such co-operation. In February 1991 the 
Commission proposed the concept of a European Energy Charter. 
Following discussion of the Commission's proposal in the EC 
Council of Ministers, the European Community invited the other 
countries of Western and Eastern Europe, the Soviet Union and 
the non-European members of the OECD to attend a Conference in 
Brussels in July 1991 to launch negotiations on the European 
Energy Charter. A number of other countries and international 
organizations were invited to attend the Energy Charter 
Conference as observers. 
Negotiations on the European Energy Charter were completed in 
1991 and the Charter was adopted by signature of a Concluding 
Document at a Conference held at The Hague on 16-17 December 
1991. Signatories of the Charter, then or subsequently, include 
all those listed in Section I above, other than observers. 
The signatories of the European Energy Charter undertook 
"to pursue the objectives and principles of the Charter and 
implement and broaden their co-operation as soon as possible by 
negotiating in good faith a Basic Agreement and Protocols". 
The Charter Conference accordingly began negotiations on a Basic 
Agreement - later called the Energy Charter Treaty - designed to 
promote East-West industrial co-operation by providing legal 
safeguards in areas such as investment, transit and trade. The 
Conference also began negotiations on Protocols in the fields of 
Energy Efficiency, Nuclear Safety and Hydrocarbons, although in 
the last case negotiations were later suspended until completion 
of the Charter Treaty. 
Negotiations on the Energy Charter Treaty and the Energy 
Efficiency Protocol were successfully completed in 1994. 
- 3 
THE ENERGY CHARTER TREATY 
As a result of its deliberations the Conference has adopted the 
text of the Energy Charter Treaty (hereinafter referred to as 
"the Treaty") which is set out in Annex 1 and Decisions with 
respect thereto which are set out in Annex 2 and agreed that 
the Treaty would be open for signature at Lisbon from 
17 December 1994 to 16 June 1995. 
UNDERSTAND INGS 
V. By signing the Final Act, the representatives agreed to adopt 
the following Understandings with respect to the Treaty: 
1. With respect to the Treaty as a whole 
(a) The representatives underline that the provisions of 
the Treaty have been agreed upon bearing in mind the 
specific nature of the Treaty aiming at a legal 
framework to promote long-term co-operation in a 
particular sector and as a result cannot be construed 
to constitute a precedent in the context of other 
international negotiations. 
(b) The provisions of the Treaty do not: 
(i) oblige any Contracting Party to introduce 
mandatory Third Party Access; or 
(ii) prevent the use of tariff systems which, within a 
particular category of consumers, apply identical 
prices to customers in different locations. 
(c) Derogations from most favoured nation treatment are 
not intended to cover measures which are specific to an 
Investor or group of Investors, rather than applying 
genera My. 
- 4 -
With respect to Article 1(5) 
(a) The Contracting Parties understand that this Treaty 
confers no rights to engage in economic activities 
other than Economic Activities in the Energy Sector. 
(b) The following activities are illustrative of Economic 
Activity in the Energy Sector: 
(i) prospecting and exploration for, and extraction 
of, e.g., oil, gas, coal and uranium; • 
(ii) construction and operation of power generation 
facilities, including those powered by wind and 
other renewable energy sources; 
(iii) land transportation, distribution, storage and 
supply of Energy Materials and Products, e.g., 
by way of transmission and distribution grids 
and pipelines or dedicated rail lines, and 
construction of facilities for such, including 
the laying of oil, gas, and coal-slurry 
pipe I ines; 
(iv) removal and disposal of- wastes from energy 
related facilities such as power stations, 
including radioactive wastes from nuclear power 
stat ions ; 
(v) decommissioning of energy related facilities, 
including oil rigs, ofl refineries and power 
generat ing plants; 
(vi) marketing and sale of, and trade in Energy 
Materials and Products, e.g., retail sales of 
gasol ine ; and 
(vii) research, consulting, planning, management and 
design activities related to the activities 
mentioned above, including those aimed at 
Improving Energy Efficiency. 
- 5 -
3. With respect to Article 1(6) 
For greater clarity as to whether an Investment made in the 
Area of one Contracting Party is controlled, directly or 
indirectly, by an Investor of any other Contracting Party, 
control of an Investment means control in fact, determined 
after an examination of the actual circumstances in each 
situation. In any such examination, all relevant factors 
should be considered, including the Investor's 
(a) financial interest, including equity interest, in the 
Investment; 
(b) ability to exercise substantial influence over the 
management and operation of the Investment; and 
(c) ability to exercise substantial influence over the 
selection of members of the board of directors or any 
other managing body. 
Where there is doubt as to whether an investor controls, 
directly or indirectly, an Investment, an Investor claiming 
such control has the burden of proof that such control 
ex ists. 
4. With respect to Article 1(8) 
Consistent with Australia's foreign investment policy, the 
establishment of a new mining or raw materials processing 
project in Australia with total investment of $A 10 million 
or more by a foreign interest, even where that foreign 
interest is already operating a similar business in 
Australia, is considered as the making of a new investment. 
5. With respect to Article 1(12) 
The representatives recognize the necessity for adequate and 
effective protection of Intellectual Property rights 
according to the highest internationally accepted standards. 
- 6 -
6. With respect to Article 5(1) 
The representatives' agreement to Article 5 is not meant to 
imply any position on whether or to what extent the 
provisions of the "Agreement on Trade-Related Measures" 
annexed to the Final Act of the Uruguay Round of 
Multilateral Trade Negotiations are implicit in articles III 
and XI of the GATT. 
7. With respect to Article 6 
(a) The unilateral and concerted anti-competitive conduct 
referred to in Article 6(2) are to be defined by each 
Contracting Party in accordance with its laws and may 
include exploitative abuses. 
(b) "Enforcement" and "enforces" include action under the 
competition laws of a Contracting Party by way of 
investigation, legal proceeding, or administrative 
action as well as by way of any decision or further law 
granting or continuing an authorization. 
8. With respect to Article 7(4) 
The applicable legislation would include provisions on 
environmental protection, land use, safety, or technical 
standards. 
9. With respect to Articles 9. 10 and Part V 
As a Contracting Party's programmes which provide for public 
loans, grants, guarantees or insurance for facilitating 
trade or Investment abroad are not connected with Investment 
or related activities of Investors from other Contracting 
Parties in its Area, such programmes may be subject to 
constraints with respect to participation in them. 
7 -
10. With respect to Article 10(4) 
The supplementary treaty will specify conditions for 
applying the Treatment described in Article 10(3). Those 
conditions will include, inter alia, provisions relating to 
the sale or other divestment of state assets (privatization) 
and to the dismantling of monopolies (demonopol ization). 
11. With respect to Articles 10(4) and 29(6) 
Contracting Parties may consider any connection between the 
provisions of Article 29(6) and Article 10(4). 
12. With respect to Article 14(5) 
It is intended that a Contracting Party which enters into an 
agreement referred to in Article 14(5) ensure that the 
conditions of such an agreement are not in contradiction 
with that Contracting Party's obligations under the Articles 
of Agreement of the International Monetary Fund. 
13. With respect to Article 19(1)(i) 
It is for each Contracting Party to decide the extent to 
which the assessment and monitoring of environmental impacts 
should be subject to legal requirements, the authorities 
competent to take decisions in relation to such 
requirements, an.d the appropriate procedures to be followed. 
14. With respect to Articles 22 and 23 
With regard to trade in Energy Materials and Products 
covered by Article 29, that Article contains the relevant 
provisions on these subjects. 
- 8 
15. With respect to Article 24(1) 
Exceptions contained in the GATT and Related Instruments 
apply between particular Contracting Parties which are 
parties to the GATT, as recognized in Article 4. With 
respect to trade in Energy Materials and Products covered by 
Article 29, that Article contains the applicable exceptions. 
16. With respect to Article 26(2)(a) 
Article 26(2)(a) should not be interpreted to require a 
Contracting Party to enact Part I I I of this Treaty into its 
dornest ic law. 
17. With respect to Articles 26 and 27 
The reference to treaty obligations in the penultimate 
sentence of Article 10(1) does not include decisions taken 
by international organizations, even if they are legally 
binding, or treaties which entered into force before 1 
January 1970. 
18. With respect to Article 29(2)(a) 
(a) Where a provision of the GATT or a Related Instrument 
referred to in this paragraph provides for joint 
action by parties to the GATT, it is intended that the 
Charter Conference take such action. 
(b) The notion "applied on 1 March 1994, and practised with 
regard to Energy Materials and Products, by parties to 
the GATT among themselves" is not intended to refer to 
cases where a party to the GATT has invoked article 
XXXV of the GATT, thereby disapplying the GATT vis-à-
vis another party to the GATT, but nevertheless applies 
unilaterally on a de facto basis some provisions of the 
GATT vis-à-vis that other party to the GATT. 
- 9 -
19. With respect to Article 33 
The provisional Charter Conference should at the earliest 
possible date decide how best to give effect to the goal of 
Title III of the European Energy Charter that Protocols be 
negotiated in areas of co-operation such as those listed in 
Title III of the Charter. 
20. With respect to Article 34 
(a) The provisional Secretary-General should make 
immediate contact with other international bodies in 
order to discover the terms on which they might be 
willing to undertake tasks arising from the Treaty and 
the Charter. The provisional Secretary-General might 
report back to the provisional Charter Conference at 
the meeting which Article 45(4) requires to be convened 
not later than 180 days after the opening date for 
s ignature. 
(b) The Charter Conference should adopt the annual budget 
before the beginning of the financial year and approve 
the annual accounts. 
21. With respect to Article 34(3)(l) 
The technical changes to Annexes might for instance include, 
delisting of non-signatories or of signatories that after an 
appropriate interval have failed to ratify, or additions to 
Annexes N and VC. It is intended that the Secretariat would 
propose such changes to the Charter Conference when 
appropr iate. 
22. With respect to Annex TFU(1) 
(a) If some of the parties to an agreement referred to in 
paragraph (1) have not signed or acceded to the Treaty 
at the time required for notification, those parties to 
the agreement which have signed or acceded to the 
Treaty may notify on their behalf. 
10 -
(b) The need in general for notification of agreements of a 
purely commercial nature is not foreseen because such 
agreements should not raise a question of compliance 
with Article 29(2)(a), even when they are entered into 
by state agencies. The Charter Conference could, 
however, clarify for purposes of this Annex which types 
of agreements referred to in Article 29(2)(b) require 
notification under this Annex and which types do not. 
DECLARATIONS 
V. The representatives declared that Article 18(2) shall not be 
construed to allow the circumvention of the application of the 
other provisions of this Treaty. 
VI. The representatives also noted the following Declarations that 
were made with respect to the Treaty: 
1. With respect to Article 1(6) 
The Russian Federation wishes to have reconsidered, in 
negotiations with regard to the supplementary treaty 
referred to in Article 10(4), the question of the 
importance of national legislation with respect to the issue 
of control as expressed in the Understanding to 
Art icle 1(6). 
2. With respect to Article 7 
The European Community and its member states and Austria, 
Norway, Sweden and Finland declare that the provisions of 
Article 7 are subject to the conventional rules of 
international law on jurisdiction over submarine cables and 
pipelines or, where there are no such rules, to general 
internat ionaI law. 
- 11 
They further declare that Article 7 is not intended to 
affect the interpretation of existing international law on 
jurisdiction over submarine cables and pipelines, and cannot 
be considered as doing so. 
3. With respect to Article 10 
Canada and the United States each affirm that they will 
apply the provisions of Article 10 in accordance with the 
following considerations: 
For the purposes of assessing the treatment which must be 
accorded to Investors of other Contracting Parties and their 
Investments, the circumstances will need to be considered on 
a case by case basis. A comparison between the treatment 
accorded to Investors of one Contracting Party, or the 
Investments of Investors of one Contracting Party, and the 
Investments or Investors of another Contracting Party, is 
only valid if it is made between Investors and Investments 
in similar circumstances. In determining whether 
differential treatment of Investors or Investments is 
consistent with Article 10, two basic factors must be taken 
into account. 
The first factor is the policy objectives of Contracting 
Parties in various fields insofar as they are consistent 
with the principles of non-discrimination set out in Article 
10. Legitimate policy objectives may justify differential 
treatment of foreign Investors or their Investments in order 
to reflect a dissimilarity of relevant circumstances between 
those Investors and Investments and their domestic 
counterparts. For example, the objective of ensuring the 
integrity of a country's financial system would justify 
reasonable prudential measures with respect to foreign 
Investors or Investments, where such measures would be 
unnecessary to ensure the attainment of the same objectives 
insofar as domestic Investors or Investments are concerned. 
Those foreign Investors or their Investments would thus not 
be "in similar circumstances" to domestic Investors or their 
- 12 -
Investments. Thus, even if such a measure accorded 
differential treatment, it would not be contrary to 
Art icle 10. 
The second factor is the extent to which the measure is 
motivated by the fact that the relevant Investor or 
Investment is subject to foreign ownership or under foreign 
control. A measure aimed specifically at Investors because 
they are foreign, without sufficient countervailing policy 
reasons consistent with the preceding paragraph, would be 
contrary to the principles of Article 10. The foreign 
Investor or Investment would be "in similar circumstances" 
to domestic Investors and their Investments, and the measure 
would be contrary to Article 10. 
4- With respect to Article 25 
The European Community and its member states recall that, in 
accordance with article 58 of the treaty establishing the 
European Community: 
(a) companies or firms formed in accordance with the law of 
a member state and having their registered office, 
central administration or principal place of business 
within the Community shall, for the right of 
establishment pursuant to Part Three, Title III, 
Chapter 2 of the treaty establishing the European 
Community, be treated in the same way as natural 
persons who are nationals of member states; companies 
or firms which only have their registered office within 
the Community must, for this purpose, have an effective 
and continuous link with the economy of one of the 
member states-, 
(b) "companies and firms" means companies or firms 
constituted under civil or commercial law, including 
co-operative societies, and other legal persons 
governed by public or private law, save for those which 
are non-profitmaking. 
- 13 -
The European Community and its member states further recall 
that: 
Community law provides for the possibility to extend the 
treatment described above to branches and agencies of 
companies or firms not established in one of the member 
states; and that, the application of Article 25 of the 
Energy Charter Treaty will allow only those derogations 
necessary to safeguard the preferential treatment resulting 
from the wider process of economic integration resulting 
from the treaties establishing the European Communities. 
5. With respect to Article 40 
Denmark recalls that the European Energy Charter does not 
apply to Greenland and the Faroe Islands until notice to 
this effect has been received from the local governments of 
Greenland and the Faroe Islands. 
In this respect Denmark affirms that Article 40 of the 
Treaty appl ies to Greenland and the Faroe Islands. 
6. With respect to Annex G(4) 
(a) The European Community and the Russian Federation 
declare that trade in nuclear materials between them 
shall be governed, until they reach another agreement, 
by the provisions of article 22 of the Agreement on 
Partnership and Cooperation signed at Corfu on 24 June 
1994, the exchange of letters attached thereto and the 
related joint declaration, and disputes regarding such 
trade will be subject to the procedures of the said 
Agreement. 
(b) The European Community declares that it intends to 
.conclude bilateral agreements for trade in nuclear 
materials with Ukraine, Kazakhstan, Kyrgyzstan, 
Tadjikistan and Uzbekistan. Procedures have been 
commenced to arrive at bilateral Declarations 
- 14 -
confirming the agreement that nuclear trade between the 
European Community and those states shall be 
exclusively covered by these specific agreements and 
that until their entry into force the provisions of the 
Agreement between the European Economic Community, the 
European Atomic Energy Community and the Union of 
Soviet Socialist Republics on trade and economic and 
commercial co-operation signed in Brussels on 18 
December 1989 shall continue to apply. 
These Declarations are to be inserted in the Final Act. 
Once inserted, these bilateral Declarations will 
replace this unilateral one. 
THE ENERGY CHARTER PROTOCOL 
ON ENERGY EFFICIENCY AND RELATED ENVIRONMENTAL ASPECTS 
VII. The Conference has adopted the text of the Protocol on Energy 
Efficiency and Related Environmental Aspects which is set out in 
Annex 3. 
THE EUROPEAN ENERGY CHARTER 
VIM. The provisional Charter Conference and the Charter Conference 
provided for in the Treaty shall henceforth be responsible for 
making decisions on requests to sign the Concluding Document of 
the Hague Conference on the European Energy Charter and the 
European Energy Charter adopted thereby. 
DOCUMENTATION 
X. The records of negotiations of the European Energy Charter 
Conference will be deposited with the Secretariat. 
Done at Lisbon on the seventeenth day of December in the year one 
thousand nine hundred and ninety-four. 
EUROPEAN ENERGY CHARTER CONFERENCE 
ENERGY CHARTER TREATY 
Text for Adoption 
14 September 1994 
14 September 1994 
ANNEX 1 
TEXT FOR ADOPTION 
ENERGY CHARTER TREATY 
PREAMBLE 
The Contracting Parties to this Treaty, 
Having regard to the Charter of Paris for a New Europe signed on 
21 November 1990; 
Having regard to the European Energy Charter adopted in the Concluding 
Document of the Hague Conference on the European Energy Charter signed 
at The Hague on 17 December 1991; 
Recalling that all signatories to the Concluding Document of the Hague 
Conference undertook to pursue the objectives and principles of the 
European Energy Charter and implement and broaden their co-operation as 
soon as possible by negotiating in good faith an Energy Charter Treaty 
and Protocols, and desiring to place the commitments contained in that 
Charter on a secure and binding international legal basis; 
Desiring also to establish the structural framework required to 
implement the principles enunciated in the European Energy Charter; 
Wishing to implement the basic concept of the European Energy Charter 
initiative which is to catalyse economic growth by means of measures 
to liberalize investment and trade in energy; 
Affirming that Contracting Parties attach the utmost importance to the 
effective implementation of full national treatment and most favoured 
nation treatment, and that these commitments will be applied to the 
Making of Investments pursuant to a supplementary treaty; 
Having regard to the objective of progressive liberalization of 
international trade and to the principle of avoidance of discrimination 
in international trade as enunciated in the General Agreement on 
Tariffs and Trade and its Related Instruments and as otherwise provided 
for in this Treaty; 
Determined progressively to remove technical, administrative and other 
barriers to trade in Energy Materials and Products and related 
equipment, technologies and services; 
Looking to the eventual membership in the General Agreement on Tariffs 
and Trade of those Contracting Parties which are not currently parties 
thereto and concerned to provide interim trade arrangements which will 
assist those Contracting Parties and not impede their preparation for 
such membership; 
Mindful of the rights and obligations of certain Contracting Parties 
which are also parties to the General Agreement on Tariffs and Trade 
and its Related Instruments; 
Having regard to competition rules concerning mergers, monopolies, 
anti-competitive practices and abuse of dominant position ; 
Having regard also to the Treaty on the Non-Pro Iiferation of Nuclear 
Weapons, the Nuclear Suppliers Guidelines and other international 
nuclear non-proliferation obligations or understandings; 
Recognizing the necessity for the most efficient exploration, 
production, conversion, storage, transport, distribution and use of 
energy ; 
- 3 -
Recalling the United Nations Framework Convention on Climate Change, 
the Convention on Long-Range Transboundary Air Pollution and its 
protocols, and other international environmental agreements with 
energy-related aspects-, and 
Recognizing the increasingly urgent need for measures to protect the 
environment, including the decommissioning of energy installations and 
waste disposal, and for internationally agreed objectives and criteria 
for these purposes: 
HAVE AGREED AS FOLLOWS: 
- 4 -
PART I 
DEFINITIONS AND GENERAL PROVISIONS 
ARTICLE 1 
DEFINITIONS 
For the purposes of this Treaty: 
(1) "Charter" means the European Energy Charter adopted in the 
Concluding Document of the Hague Conference on the European Energy 
Charter signed at The Hague on 17 December 1991; signature of the 
Concluding Document is considered to be signature of the Charter. 
(2) "Contracting Party" means a state or Regional Economic Integration 
Organization which has consented to be bound by this Treaty and 
for which the Treaty is in force. 
(3) "Regional Economic Integration Organization" means an organization 
constituted by states to which they have transferred competence 
over certain matters a number of which are governed by this 
Treaty, including the authority to take decisions binding on them 
in respect of those matters. 
(4) "Energy Materials and Products", based on the Harmonized System of 
the Customs Co-operation Council and the Combined Nomenclature of 
the European Communities, means the items included in Annex EM. 
(5) "Economic Activity in the Energy Sector" means an economic 
activity concerning the exploration, extraction, refining, 
production, storage, land transport, transmission, distribution, 
trade, marketing, or sale of Energy Materials and Products except 
those included in Annex NI, or concerning the distribution of heat 
to multiple premises. 
(6) "Investment" means every kind of asset, owned or controlled 
directly or indirectly by an Investor and includes: 
- 5 -
(a) tangible and intangible, and movable and immovable, 
property, and any property rights such as leases, mortgages, 
I iens, and pledges-, 
(b) a company or business enterprise, or shares, stock, or 
other forms of equity participation in a company or business 
enterprise, and bonds, and debt of, a company or business 
enterprise; 
(c) claims to money and claims to performance pursuant to 
contract having an economic value and associated with an 
Investment; 
(d) Intellectual Property; 
(e) Returns; 
(f) any right conferred by law, contract or by virtue of any 
licences and permits granted pursuant to law to undertake any 
Economic Activity in the Energy Sector. 
A change in the form in which assets are invested does not affect 
their character as investments and the term "Investment" includes 
all investments, whether existing at or made after the later of 
the dates of entry into force of this Treaty for the Contracting 
Party of the Investor making the investment and for the 
Contracting Party in the Area of which the investment is made 
(hereinafter referred to as the "Effective Date") provided that 
this Treaty shall only apply to matters affecting such investments 
after the Effective Date. 
"Investment" refers to any investment associated with an Economic 
Activity in the Energy Sector and to investments or classes of 
investments designated by a Contracting Party in its Area as 
"Charter efficiency projects" and so notified to the Secretariat. 
(7) "Investor" means: 
(a) with respect to a Contracting Party 
(i) a natural person having the citizenship or nationality 
of or who is permanently residing in that Contracting 
Party in accordance with its applicable, law-, 
- 6 -
(ii) a company or other organization organized in accordance 
with the law applicable in that Contracting Party 
(b) with respect to a "third state", a natural person, company or 
other organization which fulfils, mutatis mutandis, the 
conditions specified in sub-paragraph (a) for a Contracting 
Party. 
(8) "Make Investments" and "Making of Investments" mean establishing 
new Investments, acquiring all or part of existing Investments or 
moving into different fields of Investment activity. 
(9) "Returns" means the amounts derived from or associated with an 
Investment, irrespective of the form in which paid, including 
profits, dividends, interest, capital gains, royalty payments, 
management, technical assistance or other fees, and payments in 
kind. 
(10) "Area" means with respect to a state that is a Contracting Party: 
(a) the territory under its sovereignty, it being understood that 
territory includes land, internal waters and the territorial 
sea ; and 
(b) subject to and in accordance with the international law of 
the sea: the sea, sea-bed and its subsoil with regard to 
which that Contracting Party exercises sovereign rights and 
jurisdiction. 
With respect to a Regional Economic Integration Organization which 
is a Contracting Party, Area means the Areas of the member states 
of such Organization, under the provisions contained in the 
agreement establishing that Organization. 
(11) (a) "GATT" means "GATT 1947" and/or "GATT 1994", as appropriate. 
"GATT 1947" means the General Agreement on Tariffs and Trade, 
dated 30 October 1947, annexed to the Final Act Adopted at 
the Conclusion of the Second Session of the Preparatory 
- 7 -
Committee of the United Nations Conference on Trade and 
Employment, as subsequently rectified, amended or modified. 
"GATT 1994" means the General Agreement on Tariffs and Trade 
as specified in Annex 1A of the Agreement Establishing the 
World Trade Organization, as subsequently rectified, amended 
or modified. 
A party to the Agreement Establishing the World Trade 
Organization is considered to be a party to GATT 1994. 
(b) "Related Instruments" means, as appropriate, 
(i) agreements, arrangements or other legal instruments, 
including decisions, declarations and understandings, 
concluded under the auspices of the GATT 1947 as 
subsequently rectified, amended or modified; and/or 
(ii) the Agreement Establishing the World Trade Organization 
including its Annex 1 (except GATT 1994), its Annexes 2, 
3 and 4, and the decisions, declarations and 
understandings related thereto, as subsequently 
rectified, amended or modified. 
(12) "Intellectual Property" includes copyright and related rights, 
trademarks, geographical indications, industrial designs, 
patents, layout designs of integrated circuits and the protection 
of undisclosed information. 
(13) (a) "Energy Charter Protocol" and "Protocol" mean a treaty, the 
negotiation of which is authorized and the text of which is 
adopted by the Charter Conference, which is entered into by 
two or more Contracting Parties in order to complement, 
supplement, extend or amplify the provisions of this Treaty 
with respect to any specific sector or category of activity 
within the scope of this Treaty, or to areas of co-operation 
pursuant to Title III of the Charter. 
- 8 -
(b) "Energy Charter Declaration" and "Declaration" mean à legally 
non-binding agreement, the negotiation of which is authorized 
and the issuance of which is approved by the Charter 
Conference, which is entered into by two or more Contracting 
Parties to complement or supplement the provisions of this 
Treaty. 
(14) "Freely Convertible Currency" means a currency which is widely 
traded in international foreign exchange markets and widely used 
in international transactions. 
ARTICLE 2 
PURPOSE OF THE TREATY 
This Treaty establishes a legal framework in order to promote long-
term co-operation in the energy field, based on complementarities and 
mutual benefits, in accordance with the objectives and principles of 
the Charter . 
- 9 
PART I I 
COMMERCE 
ARTICLE 3 
INTERNATIONAL MARKETS 
The Contracting Parties shall work to promote access to international 
markets on commercial terms, and generally to develop an open and 
competitive market, for Energy Materials and Products. 
ARTICLE 4 
NON-DEROGATION FROM GATT AND RELATED INSTRUMENTS 
Nothing in this Treaty shall derogate, as between particular 
Contracting Parties which are parties to the GATT, from the provisions 
of the GATT and Related Instruments as they are applied between those 
Contracting Parties. 
ARTICLE 5 
TRADE RELATED INVESTMENT MEASURES 
(1) A Contracting Party shall not apply any trade related investment 
measure that is inconsistent with the provisions of article I I I or 
article XI of the GATT; this shall be without prejudice to the 
Contracting Party's rights and obligations under the GATT and 
Related Instruments and Article 29. 
(2) Such measures include any investment measure which is mandatory or 
enforceable under domestic law or under any administrative ruling 
or compliance with which is necessary to obtain an advantage, and 
which requires: 
- 10 -
(a) the purchase or use by an enterprise of products of domestic 
origin or from any domestic source, whether specified in 
terms of particular products, in terms of volume or value of 
products, or in.terms of a proportion of volume or value of 
its local production; 
(b) that an enterprise's purchase or use of imported products be 
limited to an amount related to the volume or value of local 
products that it exports-, 
or which restr icts: 
(c) the importation by an enterprise of products used in or 
related to its local production, generally or to an amount 
related to the volume or value of local production that it 
exports; 
(d) the importation by an enterprise of products used in or 
related to its local production by restricting its access to 
foreign exchange to an amount related to the foreign exchange 
inflows attributable to the enterprise; 
(e) the exportation or sale for export by an enterprise of 
products, whether specified in terms of particular products, 
in terms of volume or value of products, or in terms of a 
proportion of volume or value of its local production. 
(3) Nothing in paragraph (1) shall be construed to prevent a 
Contracting Party from applying the trade related investment 
measures described in paragraph (2)(a) and (c) as a condition of 
eligibility for export promotion, foreign aid, government 
procurement or preferential tariff or quota programmes. 
(4) Notwithstanding paragraph (1), a Contracting Party may temporarily 
continue to maintain trade related investment measures which were 
in effect more than 180 days before its signature of this Treaty, 
subject to the notification and phase-out provisions set out in 
Annex TRM. 
- 11 
ARTICLE 6 
COMPETITION 
(1) Each Contracting Party shall work to alleviate market distortions 
and barriers to competition in Economic Activity in the Energy 
Sector. 
(2) Each Contracting Party shall ensure that within its jurisdiction 
it has and enforces such laws as are necessary and appropriate to 
address unilateral and concerted anti-competitive conduct in 
Economic Activity in the Energy Sector. 
(3) Contracting Parties with experience in applying competition rules 
shall give full consideration to providing, upon request and 
within available resources, technical assistance on the 
development and implementation of competition rules to other 
Contracting Parties. 
(4) Contracting Parties may co-operate in the enforcement of their 
competition rules by consulting and exchanging information. 
(5) If a Contracting Party considers that any specified anti­
competitive conduct carried out within the Area of another 
Contracting Party is adversely affecting an important interest 
relevant to the purposes identified in this Article,the 
Contracting Party may notify the other Contracting Party and may 
request that its competition authorities initiate appropriate 
enforcement action. The notifying Contracting Party shall include 
in such notification sufficient information to permit the 
notified Contracting Party to identify the anti-competitive 
conduct that is the subject of the notification and shall include 
an offer of such further information and co-operation as that 
Contracting Party is able to provide. The notified Contracting 
Party or, as the case may be, the relevant competition authorities 
may consult with the competition authorities of the notifying 
Contracting Party and shall accord full consideration to the 
request of the notifying Contracting Party in deciding whether or 
- 12 
not to initiate enforcement action with respect to the alleged 
anti-competitive conduct identified in the notification. The 
notified Contracting Party shall inform the notifying Contracting 
Party of its decision or the decision of the relevant competition 
authorities and may if it wishes inform the notifying Contracting 
Party of the grounds for the decision. If enforcement action is 
initiated, the notified Contracting Party shall advise the 
notifying Contracting Party of its outcome and, to the extent 
possible, of any significant interim development. 
(6) Nothing in this Article shall require the provision of information 
by a Contracting Party contrary to its laws regarding disclosure 
of information, confidentiality or business secrecy. 
(7) The procedures set forth in paragraph (5) and Article 27(1) shall 
be the exclusive means within this Treaty of resolving any 
disputes that may arise over the implementation or interpretation 
of th i s Art i cle. 
ARTICLE 7 
TRANSIT 
(1) Each Contracting Party shall take the necessary measures to 
facilitate the Transit of Energy Materials and Products consistent 
with the principle of freedom of transit and without distinction 
as to the origin, destination or ownership of such Energy 
Materials and Products or discrimination as to the pricing on the 
basis of such distinctions, and without imposing any unreasonable 
delays, restrictions or charges. 
(2) Contracting Parties shall encourage relevant entities to co­
operate in: 
(a) modernizing Energy Transport Facilities necessary to the 
Transit of Energy Materials and Products; 
(b) the development and operation of Energy Transport Facilities 
serving the Areas of more than one Contracting Party; 
- 13 
(c) measures to mitigate the effects of interruptions in the 
supply of Energy Materials and Products; 
(d) facilitating the interconnection of Energy Transport 
FaciI i t ies. 
(3) Each Contracting Party undertakes that its provisions relating to 
transport of Energy Materials and Products and the use of Energy 
Transport Facilities shall treat Energy Materials and Products in 
Transit in no less favourable a manner than its provisions treat 
such materials and products originating in or destined for its own 
Area, unless an existing international agreement provides 
otherwise. 
(4) In the event that Transit of Energy Materials and Products cannot 
be achieved on commercial terms by means of Energy Transport 
Facilities the Contracting Parties shall not place obstacles in 
the way of new capacity being established, except as may be 
otherwise provided in applicable legislation which is consistent 
wi th paragraph (1). 
(5) A Contracting Party through whose Area Energy Materials and 
Products may transit shall not be obliged to 
(a) permit the construction or modification of Energy Transport 
FaciI i t ies; or 
(b) permit new or additional Transit through existing Energy 
Transport Facilities, 
which it demonstrates to the other Contracting Parties concerned 
would endanger the security or efficiency of its energy systems, 
including the security of supply. 
Contracting Parties shall, subject to paragraphs (6) and (7), 
secure established flows of Energy Materials and Products to, from 
or between the Areas of other Contracting Parties. 
(6) A Contracting Party through whose Area Energy Materials and 
Products Transit shall not, in the event of a dispute over any 
matter arising from that Transit, interrupt or reduce, permit any 
- 14 -
entity subject to its control to interrupt or reduce, or require 
any entity subject to its jurisdiction to interrupt or reduce the 
existing flow of Energy Materials and Products prior to the 
conclusion of the dispute resolution procedures set out in 
paragraph (7), except where this is specifically provided for in a 
contract or other agreement governing such Transit or permitted in 
accordance with the Conciliator's decision. 
(7) The following provisions shall apply to a dispute described in 
paragraph (6), but only following the exhaustion of all relevant 
contractual or other dispute resolution remedies previously agreed 
between the Contracting Parties party to the dispute or between 
any entity referred to in paragraph (6) and an entity of another 
Contracting Party party to the dispute. 
(a) A Contracting Party party to the dispute may refer it to the 
Secretary-General by a notification summarizing the matters 
in dispute. The Secretary-General shall notify all 
Contracting Parties of any such referral. 
(b) Within 30 days of receipt of such a notification, the 
Secretary-General, in consultation with the parties to the 
dispute and the other Contracting Parties concerned, shall 
appoint a conciliator. Such a conciliator shall have 
experience in the matters subject to dispute and shall not be 
a national or citizen of or permanently resident in a party 
to the dispute or one of the other Contracting Parties 
concerned. 
(c) The conciliator shall seek the agreement of the parties to 
the dispute to a resolution thereof or upon a procedure to 
achieve such resolution. If within 90 days of his appointment 
he has failed to secure such agreement, he shall recommend a 
resolution to the dispute or a procedure to achieve such 
resolution and shall decide the interim tariffs and other 
terms and conditions to be observed for Transit from a date 
which he shaI I specify until the dispute is resolved. 
- 15 -
(d) The Contracting Parties undertake to observe and ensure that 
the entities under their control or jurisdiction observe any 
interim decision under paragraph (7)(c) on tariffs, terms and 
conditions for 12 months following the conciliator's 
decision or until resolution of the dispute, whichever is 
ear Iier. 
(e) Notwithstanding sub-paragraph (b) the Secretary-General may 
elect not to appoint a conciliator if in his judgement the 
dispute concerns Transit that is or has been the subject of 
the dispute resolution procedures set out in sub-paragraphs 
(a) to (d) and those proceedings have not resulted in a 
resolution of the dispute. 
(f) The Charter Conference shall adopt standard provisions 
concerning the conduct of conciliation and the compensation 
of conci I iators. 
(8) Nothing in this Article shall derogate from a Contracting Party's 
rights and obligations under international law including customary 
international law, existing bilateral or multilateral agreements, 
including rules concerning submarine cables and pipelines. 
(9) This Article shall not be so interpreted as to oblige any 
Contracting Party which does not have a certain type of Energy 
Transport Facilities used for Transit to take any measure under 
this Article with respect to that type of Energy Transport 
Facilities. Such a Contracting Party shall, however, be obliged to 
comply with paragraph (4). 
(10) For the purposes of this Article: 
(a) "Transit" means: 
(i) the carriage through the Area of a Contracting Party, or 
to or from port facilities in its Area for loading or 
unloading, of Energy Materials and Products originating 
- 16 -
in the Area of another state and destined for the Area of 
a third state, so long as either the other state or the 
third state is a Contracting Party; or 
(ii) the carriage through the Area of a Contracting Party of 
Energy Materials and Products originating in the Area of 
another Contracting Party and destined for the Area of 
that other Contracting Party, unless the two Contracting 
Parties concerned decide otherwise and record their 
decision by a joint entry in Annex N. The * two 
Contracting Parties may delete their listing in Annex N 
by delivering a joint written notification of their 
intentions to the Secretariat, which shall transmit 
that notification to all other Contracting Parties. The 
deletion shall take effect four weeks after such former 
not i f i cat ion. 
(b) "Energy Transport Facilities" consist of high-pressure gas 
transmission pipelines, high-voltage electricity transmission 
grids and lines, crude oil transmission pipelines, coal 
slurry pipelines, oil product pipelines, and other fixed 
facilities specifically for handling Energy Materials and 
Products. 
ARTICLE 8 
TRANSFER OF TECHNOLOGY 
(1) The Contracting Parties agree to promote access to and transfer 
of energy technology on a commercial and non-discriminatory basis 
to assist effective trade in Energy Materials and Products and 
Investment and to implement the objectives of the Charter subject 
to their laws and regulations, and to the protection of 
Intellectual Property rights. 
- 17 -
(2) Accordingly, to the extent necessary to give effect to paragraph 
(1) the Contracting Parties shall eliminate existing and create no 
new obstacles for transfer of technology, in the field of Energy 
Materials and Products and related equipment and services, subject 
to non-proliferation and other international obligations. 
ARTICLE 9 
ACCESS TO CAPITAL 
(1) The Contracting Parties acknowledge the importance of open capital 
markets in encouraging the flow of capital to finance trade in 
Energy Materials and Products and for the making of and assisting 
with regard to Investments in Economic Activity in the Energy 
Sector in the Areas of other Contracting Parties, particularly 
those with economies in transition. Each Contracting Party shall 
accordingly endeavour to promote conditions for access to its 
capital market by companies and nationals of other Contracting 
Parties, for the purpose of financing trade in Energy Materials 
and Products and for the purpose of Investment in Economic 
Activity in the Energy Sector in the Areas of those other 
Contracting Parties, on a basis no less favourable than that 
which it accords in like circumstances to its own companies and 
nationals or companies and nationals of any other Contracting 
Party or any third state, whichever is the most favourable. 
(2) A Contracting Party may adopt and maintain programmes providing 
for access to public loans, grants, guarantees or insurance for 
facilitating trade or Investment abroad. It shafI make such 
facilities available, consistent with the objectives, constraints 
and criteria of such programmes (including but not limited to, on 
any grounds, objectives, constraints or criteria relating to the 
place of business of an applicant for any such facility or the 
place of delivery of goods or services supplied with the support 
of any such facility) for Investments in the Economic Activity in 
the Energy Sector of other Contracting Parties or for financing 
trade in Energy Materials and Products with other Contracting 
Part ies. 
- 18 -
(3) Contracting Parties shall, in implementing programmes in Economic 
Activity in the Energy Sector to improve the economic stability 
and investment climates of the Contracting Parties, seek as 
appropriate to encourage the operations and take advantage of the 
expertise of relevant international financial institutions. 
(4) Nothing in this Article shall prevent 
(a) financial institutions from applying their own lending or 
underwriting practices based on market principles and 
prudential considerations; or 
(b) a Contracting Party from taking measures 
(i) for prudential reasons, including the protection of 
Investors, consumers, depositors, policy holders or 
persons to whom a fiduciary duty is owed by a financial 
serv ice suppI ier; or 
(ii) to ensure the integrity and stability of its financial 
system and capital markets. 
19 
PART I I I 
INVESTMENT PROMOTION AND PROTECTION 
ARTICLE 10 
PROMOTION, PROTECTION AND TREATMENT OF INVESTMENTS 
(1) Each Contracting Party shall, in accordance with the provisions of 
this Treaty, encourage and create stable, equitable, favourable 
and transparent conditions for Investors of other Contracting 
Parties to Make Investments in its Area. Such conditions shall 
include a commitment to accord at all times to Investments of 
Investors of other Contracting Parties fair and equitable 
treatment. Such Investments shall also enjoy the most constant 
protection and security and no Contracting Party shall in any way 
impair by unreasonable or discriminatory measures their 
management, maintenance, use, enjoyment or disposal. In no case 
shall such Investments be accorded treatment less favourable than 
that required by international law, including treaty obligations. 
Each Contracting Party shall observe any obligations it has 
, entered into with an Investor or an Investment of an Investor of 
any other Contracting Party. 
(2) Each Contracting Party shall endeavour to accord to Investors of 
other Contracting Parties, as regards the Making of Investments in 
its Area, the Treatment described in paragraph (3). 
(3) For the purposes of this Article, "Treatment" means treatment 
accorded by a Contracting Party which is no less favourable than 
that which it accords to its own Investors or to Investors of any 
other Contracting Party or any third state, whichever is the most 
favourable. 
(4) A supplementary treaty shall, subject to conditions to be laid 
down therein, oblige each party thereto to accord to Investors of 
other parties, as regards the Making of Investments in its Area, 
- 20 -
the Treatment described in paragraph (3). That treaty shall be 
open for signature by the states and Regional Economic 
Integration Organizations which have signed or acceded to this 
Treaty. Negotiations towards the supplementary treaty shall 
commence not later than 1 January 1995, with a view to concluding 
it by 1 January 1998. 
(5) Each Contracting Party shall, as regards the Making of Investments 
in its Area, endeavour to: 
(a) limit to the minimum the exceptions to the Treatment 
described in paragraph (3); 
(b) progressively remove existing restrictions affecting 
Investors of other Contracting Parties. 
(6) (a) A Contracting Party may, as regards the Making of Investments 
in its Area, at any time declare voluntarily to the 
Charter Conference, through the Secretariat, its intention 
not to introduce new exceptions to the Treatment described in 
paragraph (3). 
(b) A Contracting Party may, furthermore, at any time make a 
voluntary commitment to accord to Investors of other 
Contracting Parties, as regards the Making of Investments in 
some or all Economic Activities in the Energy Sector in its 
Area, the Treatment described in paragraph (3). Such 
commitments shall be notified to the Secretariat and listed 
in Annex VC and shall be binding under this Treaty. 
(7) Each Contracting Party shall accord to Investments in its Area of 
Investors of another Contracting Party, and their related 
activities including management, maintenance, use, enjoyment or 
disposal, treatment no less favourable than that which it accords 
to Investments of its own Investors or of the Investors of any 
other Contracting Party or any third state and their related 
activities including management, maintenance, use, enjoyment or 
disposal, whichever is the most favourable. 
- 21 -
(8) The modalities of application of paragraph (7) in relation to 
programmes under which a Contracting Party provides grants or 
other financial assistance, or enters into contracts, for energy 
technology research and development, shall be reserved for the 
supplementary treaty described in paragraph (4). Each Contracting 
Party shall through the Secretariat keep the Charter Conference 
informed of the modalities it applies to the programmes described 
in this paragraph. 
(9) Each state or Regional Economic Integration Organization which 
signs or accedes to this Treaty shall, on the date it signs the 
Treaty or deposits its instrument of accession, submit to the 
Secretariat a report summarizing all laws, regulations or other 
measures relevant to: 
(a) exceptions to paragraph (2); or 
(b) the programmes referred to in paragraph (8). 
A Contracting Party shall keep its report up to date by promptly 
submitting amendments to the Secretariat. The Charter Conference 
shall review these reports periodically. 
In respect of sub-paragraph (a) the report may designate parts of 
the energy sector in which a Contracting Party accords to 
Investors of other Contracting Parties the Treatment described in 
paragraph (3). 
In respect of sub-paragraph (b) the review by the Charter 
Conference may consider the effects of such programmes on 
competition and Investments. 
(10) Notwithstanding any other provision of this Article, the Treatment 
described in paragraph (3) shall not apply to the protection of 
Intellectual Property; instead, the treatment shall be as 
specified in the corresponding provisions of the applicable 
international agreements for the protection of Intellectual 
Property rights to which the respective Contracting Parties are 
part ies. 
- 22 -
(11) For the purposes of Article 26, the application by a Contracting 
Party of a trade related investment measure as described in 
Article 5(1) and (2) to an Investment of an Investor of another 
Contracting Party existing at the time of such application shall, 
subject to Article 5(3) and (4), be considered a breach of an 
obligation of the former Contracting Party under this Part. 
(12) Each Contracting Party shall ensure that its domestic law provides 
effective means for the assertion of claims and the enforcement of 
rights with respect to Investment, investment agreements, and 
investment authorizations. 
ARTICLE 11 
KEY PERSONNEL 
(1) A Contracting Party shall, subject to its laws and regulations 
relating to the entry, stay and work of natural persons, examine 
in good faith requests by Investors of another Contracting Party, 
and key personnel who are employed by such Investors or by 
Investments of such Investors, to enter and remain temporarily in 
its Area to engage in activities connected with the making or the 
development, management, maintenance, use, enjoyment or disposal 
of relevant Investments, including the provision of advice or key 
technical services. 
(2) A Contracting Party shall permit Investors of another Contracting 
Party which have Investments in its Area, and Investments of such 
Investors, to employ any key person of the Investor's or the 
Investment's choice regardless of nationality and citizenship 
provided that such key person has been permitted to enter, stay 
and work in the Area of the former Contracting Party and that the 
employment concerned conforms to the terms, conditions and time 
limits of the permission granted to such key person. 
- 23 -
ARTICLE 12 
COMPENSATION FOR LOSSES 
(1) Except where Article 13 applies, an Investor of any Contracting 
Party which suffers a loss with respect to any Investment in the 
Area of another Contracting Party owing to war or other armed 
conflict, state of national emergency, civil disturbance, or other 
similar event in that Area, shall be accorded by the latter 
Contracting Party, treatment, as regards restitution, 
indemnification, compensation or other settlement, which is the 
most favourable of that which that Contracting Party accords to 
any other Investor, whether its own Investor, the Investor of any 
other Contracting Party, or the Investor of any third state. 
(2) Without prejudice to paragraph (1), an Investor of a Contracting 
Party which, in any of the situations referred to in that 
paragraph, suffers a loss in the Area of another Contracting Party 
resulting from 
(a) requisitioning of its Investment or part thereof by the 
latter's forces or authorities; or 
(b) destruction of its Investment or part thereof by the latter's 
forces or authorities, which was not required by the 
necessity of the situation, 
shall be accorded restitution or compensation which in either case 
shall be prompt, adequate and effective. 
ARTICLE 13 
EXPROPRIATION 
(1) Investments of Investors of a Contracting Party in the Area of any 
other Contracting Party shall not be nationalized, expropriated or 
subjected to a measure or measures having effect equivalent to 
nationalization or expropriation (hereinafter referred to as 
"Expropriation") except where such Expropriation is: 
- 24 -
(a) for a purpose which is in the public interest; 
(b) not discriminatory; 
(c) carried out under due process of law; and 
(d) accompanied by the payment of prompt, adequate and effective 
compensation. 
Such compensation shall amount to the fair market value of the 
Investment expropriated at the time immediately before the 
Expropriation or impending Expropriation became known in such a 
way as to affect the value of the Investment (hereinafter referred 
to as the "Valuation Date"). 
Such fair market value shall at the request of the Investor be 
expressed in a Freely Convertible Currency on the basis of the 
market rate of exchange existing for that currency on the 
Valuation Date. Compensation shall also include interest at a 
commercial rate established on a market basis from the date of 
Expropriation until the date of payment. 
(2) The Investor affected shall have a right to prompt review, under 
the law of the Contracting Party making the Expropriation, by a 
judicial or other competent and independent authority of that 
Contracting Party, of its case, of the valuation of its 
Investment, and of the payment of compensation, in accordance with 
the principles set out in paragraph (1). 
(3) For the avoidance of doubt, Expropriation shall include situations 
where a Contracting Party expropriates the assets of a company or 
enterprise in its Area in which an Investor of any other 
Contracting Party has an Investment, including through the 
ownership of shares. 
25 
ARTICLE 14 
TRANSFERS RELATED TO INVESTMENTS 
(1) Each Contracting Party shall with respect to Investments in its 
Area of Investors of any other Contracting Party guarantee the 
freedom of transfer into and out of its Area, including the 
transfer of: 
(a) the initial capital plus any additional capital for the 
maintenance and development of an Investment; 
(b) Returns; 
(c) payments under a contract, including amortization of 
principal and accrued interest payments pursuant to a loan 
agreement ; 
(d) unspent earnings and other remuneration of personnel engaged 
from abroad in connection with that Investment; 
(e) proceeds from the sale or liquidation of all or any part of 
an Investment-, 
(f) payments arising out of the settlement of a dispute; 
(g) payments of compensation pursuant to Articles 12 and 13. 
(2) Transfers under paragraph (1) shall be effected without delay and 
in a Freely Convertible Currency. 
(3) Transfers shall be made at the market rate of exchange existing on 
the date of transfer with respect to spot transactions in the 
currency to be transferred, in the absence of a market for foreign 
exchange, the rate to be used will be the most recent rate applied 
to inward investments or the most recent exchange rate for 
conversion of currencies into Special Drawing Rights, whichever is 
more favourable to the Investor. 
(4) Notwithstanding paragraphs (1) to (3), a Contracting Party may 
protect the rights of creditors, or ensure compliance with laws on 
the issuing, trading and dealing in securities and the 
satisfaction of judgments in civil, administrative and criminal 
- 26 -
adjudicatory proceedings, through the equitable, non­
discriminatory, and good faith application of its laws and 
régulât ions. 
(5) Notwithstanding paragraph (2), Contracting Parties which are 
states that were consituent parts of the former Union of Soviet 
Socialist Republics may provide in agreements concluded between 
them that transfers of payments shall be made in the currencies of 
such Contracting Parties, provided that such agreements do not 
treat Investments in their Areas of Investors of other Contracting 
Parties less favourably than either Investments of Investors of 
the Contracting Parties which have entered into such agreements or 
Investments of Investors of any third state. 
(6) Notwithstanding paragraph (1Mb), a Contracting Party may restrict 
the transfer of a Return in kind in circumstances where the 
Contracting Party is permitted under the GATT and Related 
Instruments or Article 29(2)(a) of this Treaty to restrict or 
prohibit the exportation or the sale for export of the product 
constituting the Return in kind; provided that a Contracting Party 
shall permit Returns in kind to be made as authorized or specified 
in an investment agreement, investment authorization, or other 
written agreement between the Contracting Party and either an 
Investor of another Contracting Party or its Investment. 
ARTICLE 15 
SUBROGATION 
(1) If a Contracting Party or its designated agency (hereinafter 
referred to as the "Indemnifying Party") makes a payment under an 
indemnity or guarantee given in respect of an Investment of an 
Investor (hereinafter referred to as the "Party Indemnified") in 
the Area of another Contracting Party (hereinafter referred to as 
the "Host Party"), the Host Party shall recognize: 
- 27 -
(a) the assignment to the Indemnifying Party of all the rights 
and claims in respect of such Investment; and 
(b) the right of the Indemnifying Party to exercise all such 
rights and enforce such claims by virtue of subrogation. 
(2) The Indemnifying Party shall be entitled in all circumstances to 
(a) the same treatment in respect of the rights and claims 
acquired by it by virtue of the assignment referred to in 
paragraph (1); and 
(b) the same payments due pursuant to those rights and claims, 
as the Party Indemnified was entitled to receive by virtue of this 
Treaty in respect of the Investment concerned. 
(3) In any proceeding under Article 26, a Contracting Party shall not 
assert as a defence, counterclaim, right of set-off or for any 
other reason, that indemnification or other compensation for all 
or part of the alleged damages has been received or will be 
received pursuant to an insurance or guarantee contract. 
ARTICLE 16 
RELATION TO OTHER AGREEMENTS 
Where two or more Contracting Parties have entered into a prior 
international agreement, or enter into a subsequent international 
agreement, whose terms in either case concern the subject matter of 
Part III or V of this Treaty, 
(1) nothing in Part III or V of this Treaty shall be construed to 
derogate from any provision of such terms of the other agreement 
or from any right to dispute resolution with respect thereto under 
that agreement; and 
- 28 -
(2) nothing in such terms of the other agreement shall be construed to 
derogate from any provision of Part III or V of this Treaty or 
from any right to dispute resolution with respect thereto under 
this Treaty, 
where any such provision is more favourable to the Investor or 
Investment. 
ARTICLE 17 
NON-APPLICATION OF PART III IN CERTAIN CIRCUMSTANCES 
Each Contracting Party reserves the right to deny the advantages of 
this Part to: 
(1) a legal entity if citizens or nationals of a third state own or 
control such entity and if that entity has no substantial business 
activities in the Area of the Contracting Party in which it is 
organized; or 
(2) an Investment, if the denying Contracting Party establishes that 
such Investment is an Investment of an Investor of a third state 
with or as to which the denying Contracting Party 
(a) does not maintain a diplomatic relationship; or 
(b) adopts or maintains measures that 
(i) prohibit transactions with Investors of that state; or 
(ii) would be violated or circumvented if the benefits of 
this Part were accorded to Investors of that state or 
to their Investments. 
- 29 
PART IV 
CONTEXTUAL 
ARTICLE 18 
SOVEREIGNTY OVER ENERGY RESOURCES 
(1) The Contracting Parties recognize state sovereignty and sovereign 
rights over energy resources. They reaffirm that these must be 
exercised in accordance with and subject to the rules of 
international law. 
(2) Without affecting the objectives of promoting access to energy 
resources, and exploration and development thereof on a commercial 
basis, the Treaty shall in no way prejudice the rules in 
Contracting Parties governing the system of property ownership of 
energy resources. 
(3) Each state continues to hold in particular the rights to decide 
the geographical areas within its Area to be made available for 
exploration and development of its energy resources and the rate 
at which they may be depleted or otherwise exploited, to specify 
and enjoy any taxes, royalties or other financial payments payable 
by virtue of such exploration and exploitation and to regulate 
the resource conservation and the environmental and safety aspects 
of such exploration, development and reclamation within its Area, 
and to participate in such exploration and exploitation, inter 
alia, through direct participation by the government or through 
state enterpr i ses. 
(4) The Contracting Parties undertake to facilitate access to energy 
resources inter alia by allocating in a non-discriminatory manner 
on the basis of published criteria authorizations, licences, 
concessions and contracts to prospect and explore for or to 
exploit or extract energy resources. 
- 30 -
ARTICLE 19 
ENVIRONMENTAL ASPECTS 
(1) In pursuit of sustainable development and taking into account its 
obligations under those international agreements concerning the 
environment to which it is party, each Contracting Party shall 
strive to minimize in an economically efficient manner harmful 
Environmental Impacts occurring either within or outside its 
Area from all operations within the Energy Cycle in its Area, 
taking proper account of safety. In doing so each Contracting 
Party shall act in a Cost-Effect ive manner. In its policies and 
actions each Contracting Party shall strive to take precautionary 
measures to prevent or minimize environmental degradation. The 
Contracting Parties agree that the polluter in the Areas of 
Contracting Parties, should, in principle, bear the cost of 
pollution, including transboundary pollution, with due regard to 
the public interest and without distorting Investment in the 
Energy Cycle or international trade. Contracting Parties shall 
accordingly: 
(a) take account of environmental considerations throughout the 
formulation and implementation of their energy policies; 
(b) promote market-oriented price formation and a fuller 
reflection of environmental costs and benefits throughout the 
Energy Cycle; 
(c) having regard to Article 34(4), encourage co-operation in the 
attainment of the environmental objectives of the Charter and 
co-operation in the field of international environmental 
standards for the Energy Cycle, taking into account 
differences in adverse effects and abatement costs between 
Contracting Parties; 
(d) have particular regard to Improving Energy Efficiency, to 
developing and using renewable energy sources, to promoting 
the use of cleaner fuels and to employing technologies and 
technological means that reduce pollution-, 
- 31 -
(e) promote the collection and sharing among Contracting Parties 
of information on environmentally sound and economically 
efficient energy policies and Cost-Effective practices and 
techno log ies; 
(f) promote public awareness of the Environmental Impacts of 
energy systems, of the scope for the prevention or abatement 
of their adverse Environmental Impacts, and of the costs 
associated with various prevention or abatement measures; 
(g) promote and cooperate in the research, development and 
application of energy efficient and environmentally sound 
technologies, practices and processes which will minimize 
harmful Environmental Impacts of all aspects of the Energy 
Cycle in an economically efficient manner; 
(h) encourage favourable conditions for the transfer and 
dissemination of such technologies consistent with the 
adequate and effective protection of Intellectual Property 
r ights; 
(i) promote the transparent assessment at an early state and 
prior to decision, and subsequent monitoring, of 
Environmental Impacts of environmentally significant energy 
investment projects; 
(j) promote international awareness and information exchange on 
Contracting Parties' relevant environmental programmes and 
standards and on the implementation of those programmes and 
standards; 
(k) participate, upon request, and within their available 
resources, in the development and implementation of 
appropriate environmental programmes in the Contracting 
Part ies. 
- 32 -
(2) At the request of one or more Contracting Parties, disputes 
concerning the application or interpretation of provisions of this 
Article shair, to the extent that arrangements for the 
consideration of such disputes do not exist in other appropriate 
international fora, be reviewed by the Charter Conference aiming 
at a so lut ion. 
(3) For the purposes of this Article: 
(a) "Energy Cycle" means the entire energy chain, including 
activities related to prospecting for, exploration, 
production, conversion, storage, transport, distribution and 
consumption of the various forms of energy, and the treatment 
and disposal of wastes, as well as the decommissioning, 
cessation or closure of these activities, minimizing harmful 
Environmental Impacts. 
(b) "Environmental Impact" means any effect caused by a given 
activity on the environment, including human health and 
safety, flora, fauna, soil, air, water, climate, landscape 
and historical monuments or other physical structures or the 
interactions among these factors; it also includes effects on 
cultural heritage or socio-economic conditions resulting from 
alterations to those factors. 
(c) "Improving Energy Efficiency" means acting to maintain the 
same unit of output (of a good or service) without reducing 
the quality or performance of the output, while reducing the 
amount of energy required to produce that output. 
(d) "Cost-Effective" means to achieve a defined objective at the 
lowest cost or to achieve the greatest benefit at a given 
cost. 
- 33 
ARTICLE 20 
TRANSPARENCY 
(1) Laws, regulations, judicial decisions and administrative rulings 
of general application which affect trade in Energy Materials and 
Products are, in accordance with Article 29(2)(a), among the 
measures subject to the transparency disciplines of the GATT and 
relevant Related Instruments. 
(2) Laws, regulations, judicial decisions and administrative rulings 
of general application made effective by any Contracting Party, 
and agreements in force between Contracting Parties, which affect 
other matters covered by this Treaty shall also be published 
promptly in such a manner as to enable Contracting Parties and 
Investors to become acquainted with them. The provisions of this 
paragraph shall not require any Contracting Party to disclose 
confidential information which would impede law enforcement or 
otherwise be contrary to the public interest or would prejudice 
the legitimate commercial interests of any Investor. 
(3) Each Contracting Party shall designate one or more enquiry points 
to which requests for information about the above mentioned laws, 
regulations, judicial decisions and administrative rulings may be 
addressed and shall communicate promptly such designation to the 
Secretariat which shall make it available on request. 
ARTICLE 21 
TAXATION 
(1) Except as otherwise provided in this Article, nothing in this 
Treaty shall apply to impose obligations with respect to Taxation 
Measures of the Contracting Parties. In the event of any 
inconsistency between this Article and any other provision of this 
Treaty, this Article shall prevail to the extent of the 
inconsistency. 
- 34 -
(2) Notwithstanding paragraph (1), 
(a) Article 29 shall apply to Taxation Measures other than those 
on income or on capital; and 
(b) the provisions of this Treaty requiring a Contracting Party 
to provide most favoured nation treatment relating to trade 
in goods and services shall apply to Taxation Measures other 
than taxes on income or on capital, except that such 
provisions shall not apply to: 
(i) an advantage accorded by a Contracting Party pursuant to 
the tax provisions in any convention, agreement or 
arrangement, described in paragraph (6)(a)(ii); or 
(ii) any Taxation Measure aimed at ensuring the effective 
collection of taxes, except where the measure 
arbitrarily discriminates between goods of the 
Contracting Parties or arbitrarily restricts benefits 
accorded under the above mentioned provisions of this 
Treaty. 
(3) The provisions imposing national treatment obligations or most 
favoured nation obligations under Part Ml shall apply to Taxation 
Measures of the Contracting Parties other than those on income 
or on capital, except that such provisions shall not apply to: 
(a) impose most favoured nation obligations with respect to 
advantages accorded by a Contracting Party pursuant to the 
tax provisions in any convention, agreement or arrangement, 
described in paragraph (6)(a)(ii) or resulting from 
membership of any Regional Economic Integration Organization; 
or 
(b) any Taxation Measure concerning the effective collection of 
taxes, except where the measure arbitrarily discriminates 
between Investors of the Contracting Parties or arbitrarily 
restricts benefits accorded under the Investment provisions 
of this Treaty. 
35 -
(4) (a) Article 13 shall apply to taxes. 
(b) Whenever an issue arises under Article 13, to the extent it 
pertains to whether a tax constitutes an expropriation or 
whether a tax alleged to constitute an expropriation is 
discriminatory, the following provisions shall apply: 
(i) The Investor or the Contracting Party alleging 
expropriation shall refer the issue of whether the tax 
is an expropriation or whether the tax is 
discriminatory to the relevant Competent Tax Authority. 
Failing such referral by the Investor or the 
Contracting Party, bodies called upon to settle 
disputes pursuant to Article 26(2)(c) or 27(2) shall 
make a referral to the relevant Competent Tax 
Author i t ies. 
(ii) The Competent Tax Authorities shall, within a period of 
six months of such referral, strive to resolve the 
issues so referred. Where non-discrimination issues are 
concerned, the Competent Tax Authorities shall apply 
the non-discrimination provisions of the relevant tax 
convention or, if there is no non-discrimination 
provision in the relevant tax convention applicable to 
the tax or no such tax convention is in force between 
the Contracting Parties concerned, they shall apply the 
non-discrimination principles under the Model Tax 
Convention on Income and Capital of the Organisation 
for Economic Co-operation and Development. 
(iii) Bodies called upon to settle disputes pursuant to 
Article 26(2)(c) or 27(2) may take into account any 
conclusions arrived at by the Competent Tax 
Authorities regarding whether the tax is an 
expropriation. Such bodies shall take into account any 
conclusions arrived at within the six-month period 
prescribed in sub-paragraph (ii) by the Competent Tax 
Authorities regarding whether the tax is 
- 36 -
discriminatory. Such bodies may also take into account 
any conclusions arrived at by the Competent Tax 
Authorities after the expiry of the six-month period. 
(iv) Under no circumstances shall involvement of the 
Competent Tax Authorities, beyond the end of the six-
month period referred to in sub-paragraph (ii), lead to 
a delay of proceedings under Articles 26 and 27. 
(5) For the avoidance of doubt, Article 14 shall not limit the right 
of a Contracting Party to impose or collect a tax by withholding 
or other means. 
(6) For the purposes of this Article: 
(a) The term "Taxât ion-Measure" includes: 
(i) any provision relating to taxes of the domestic law of 
the Contracting Party or of a political subdivision 
thereof or a local authority therein; and 
(ii) any provision relating to taxes of any convention for 
the avoidance of double taxation or any other 
international agreement or arrangement by which the 
Contracting Party is bound. 
(b) There shall be regarded as taxes on income or on capital all 
taxes imposed on total income, on total capital or on 
elements of income or of capital, including taxes on gains 
from the alienation of property, taxes on estates, 
inheritances and gifts, or substantially similar taxes, taxes 
on the total amounts of wages or salaries paid by 
enterprises, as well as taxes on capital appreciation. 
(c) A "Competent Tax Authority" means the competent authority 
pursuant to a double taxation agreement in force between the 
Contracting Paries or, when there is no such agreement 
- 37 -
between the countries in question, the m'inister or ministry 
responsible for taxes or his or its authorized 
représentât i ves. 
(d) For the avoidance of doubt, the terms "tax provisions" and 
"taxes" do not include customs duties. 
ARTICLE 22 
STATE AND PRIVILEGED ENTERPRISES 
(1) Each Contracting Party shall ensure that any state enterprise 
which it maintains or establishes shall conduct its activities in 
relation to the sale or provision of goods and services in its 
Area in a manner consistent with the Contracting Party's 
obligations under Part I I I of this Treaty. 
(2) No Contracting Party shall encourage or require such a state 
enterprise to conduct its activities in its Area in a manner 
inconsistent with the Contracting Party's obligations under other 
provisions of this Treaty. 
(3) Each Contracting Party shall ensure that if it establishes or 
maintains a state entity and entrusts the entity with regulatory, 
administrative or other governmental authority, such entity shall 
exercise that authority in a manner consistent with the 
Contracting Party's obligations under this Treaty. 
(4) No Contracting Party shall encourage or require any entity to 
which it grants exclusive or special privileges to conduct its 
activities in its Area in a manner inconsistent with the 
Contracting Party's obligations under this Treaty. 
(5) For the purposes of this Article, "entity" includes any 
enterprise, agency or other organization or individual. 
- 38 -
ARTICLE 23 
OBSERVANCE BY SUB-NATIONAL AUTHORITIES 
(1) Each Contracting Party is fully responsible under this Treaty for 
the observance of all provisions of this Treaty, and shall take 
such reasonable measures as may be available to it to ensure such 
observance by regional and local governments and authorities 
wi thin its Area. 
(2) The dispute settlement provisions in Parts II, IV and V of this 
Treaty may be invoked in respect of measures affecting the 
observance of this Treaty by a Contracting Party which have been 
taken by regional or local governments or authorities within the 
Area of the Contracting Party. 
ARTICLE 24 
EXCEPTIONS 
(1) This Article shall not apply to Articles 12, 13 and 29. 
(2) The provisions of this Treaty other than 
(a) those referred to in paragraph (1); and 
(b) with respect to sub-paragraph (i), Part I I I of this Treaty 
shall not preclude any Contracting Party from adopting or 
enforcing any measure 
(i) necessary to protect human, animal or plant life or health; 
(ii) essential to the acquisition or distribution of Energy 
Materials and Products in conditions of short supply 
arising from causes outside the control of that Contracting 
Party, provided that any such measure shall be consistent 
with the principles that 
- 39 -
(A) all other Contracting Parties are entitled to an 
equitable share of the international supply of such 
Energy Materials and Products-, and 
(B) any such measure that is inconsistent with this Treaty 
shall be discontinued as soon as the conditions giving 
rise to it have ceased to exist; or 
(iii) designed to benefit Investors who are aboriginal people or 
socially or economically disadvantaged individuals or 
groups or their Investments and notified to the Secretariat 
as such, provided that such measure 
(A) has no significant impact on that Contracting Party's 
economy ; and 
(B) does not discriminate between Investors of any other 
Contracting Party and Investors of that Contracting 
Party not included among those for whom the measure is 
intended, 
provided that no such measure shall constitute a disguised 
restriction on Economic Activity in the Energy Sector, or 
arbitrary or unjustifiable discrimination between Contracting 
Parties or between Investors or other interested persons of 
Contracting Parties. Such measures shall be duly motivated and 
shall not nullify or impair any benefit one or more other 
Contracting Parties may reasonably expect under this Treaty to an 
extent greater than is strictly necessary to the stated end. 
(3) The provisions of this Treaty other than those referred to in 
paragraph (1) shall not be construed to prevent any Contracting 
Party from taking any measure which it considers necessary: 
(a) for the protection of its essential security interests 
including those 
(i) relating to the supply of Energy Materials and Products 
to a military establishment; or 
(ii) taken in time of war, armed confIict or other emergency 
in international relations; 
- 40 -
(b) relating to the implementation of national policies 
respecting the non-proliferation of nuclear weapons or other 
nuclear explosive devices or needed to fulfil its obligations 
under the Treaty on the Non-Proliferation of Nuclear 
Weapons, the Nuclear Suppliers Guidelines, and other 
international nuclear non-proliferation obligations or 
understandings; or 
(c) for the maintenance of public order. 
Such measure shall not constitute a disguised restriction on 
Transit. 
(4) The provisions of this Treaty which accord most favoured nation 
treatment shall not oblige any Contracting Party to extend to the 
Investors of any other Contracting Party any preferential 
treatment: 
(a) resulting from its membership in a free-trade area or customs 
union; or 
(b) which is accorded by bilateral or multilateral agreements 
concerning economic co-operation between the states that were 
constituent parts of the former Union of Soviet Socialist 
Republics pending the establishment of their mutual economic 
relations on a definitive basis. 
ARTICLE 25 
ECONOMIC INTEGRATION AGREEMENTS 
(1) The provisions of this Treaty shall not be so construed as to 
oblige a Contracting Party which is party to an Economic 
Integration Agreement (hereinafter referred to as "EIA") to 
extend, by means of most favoured nation treatment, to another 
Contracting Party which is not a party to that EIA, any 
preferential treatment applicable between the parties to that EIA 
as a result of their being parties thereto. 
- 41 
(2) For the purposes of paragraph (1) "EIA" means an agreement 
substantially liberalizing inter alia trade and investment, by 
providing for the absence or elimination of substantially all 
discrimination between or among parties thereto through the 
elimination of existing discriminatory measures and/or the 
prohibition of new or more discriminatory measures, either at the 
entry into force of that agreement or on the basis of a reasonable 
time frame. 
(3) This Article shall not affect the application of the GATT 
according to Article 29. 
42 -
PART V 
DISPUTE SETTLEMENT 
ARTICLE 26 
SETTLEMENT OF DISPUTES BETWEEN AN INVESTOR AND A CONTRACTING PARTY 
(1) Disputes between a Contracting Party and an Investor of another 
Contracting Party relating to an Investment of the latter in the 
Area of the former, which concern an alleged breach of an 
obligation of the former under Part III shall, if possible, be 
sett led amicably. 
(2) If such disputes can not be settled according to the provisions of 
paragraph (1) within a period of three months from the date on 
which either party to the dispute requested amicable settlement, 
the Investor party to the dispute may choose to submit it for 
resolut ion: 
(a) to the courts or administrative tribunals of the Contracting 
Party party to the dispute; 
(b) in accordance with any applicable, previously agreed dispute 
settlement procedure; or 
(c) in accordance with the following paragraphs of this Article. 
(3) (a) Subject only to sub-paragraphs (b) and (c), each Contracting 
Party hereby gives its unconditional consent to the 
submission of a dispute to international arbitration or 
conciliation in accordance with the provisions of this 
Art icle. 
(b) (i) The Contracting Parties listed in Annex ID do not give 
such unconditional consent where the Investor has 
previously submitted the dispute under paragraph (2)(a) 
or (b). 
- 43 
(ii) For the sake of transparency, each Contracting Party that 
is listed in Annex ID shall provide a written statement 
of its policies, practices and conditions in this regard 
to the Secretariat no later than the date of the deposit 
of its instrument of ratification, acceptance or approval 
in accordance with Article 39 or the deposit of its 
instrument of accession in accordance with Article 41. 
(c) A Contracting Party listed in Annex IA does not give such 
unconditional consent with respect to a dispute arising under 
the last sentence of Article 10(1). 
(4) In the event that an Investor chooses to submit the dispute for 
resolution under paragraph (2)(c), the Investor shall further 
provide its consent in writing for the dispute to be submitted to: 
(a) (i) The International Centre for Settlement of Investment 
Disputes, established pursuant to the Convention on the 
Settlement of Investment Disputes between States and 
Nationals of other States opened for signature at 
Washington 18 March 1965 (hereinafter referred to as the 
"ICSID Convention") if the Contracting Party of the 
Investor and the Contracting Party party to the dispute 
are both parties to the ICSID Convention; or 
(ii) The International Centre for Settlement of Investment 
Disputes, established pursuant to the Convention referred 
to in sub-paragraph (a)(i), under the rules governing the 
Additional Facility for the Administration of Proceedings 
by the Secretariat of the Centre (hereinafter referred 
to as the "Additional Facility Rules"), if the 
Contracting Party of the Investor or the Contracting 
Party party to the dispute, but not both, is a party to 
the ICSID Convention; 
OR 
(b) a sole arbitrator or ad hoc arbitration tribunal established 
under the Arbitration Rules of the United Nations Commission 
on International Trade Law (hereinafter referred to as 
"UNCITRAL"); 
- 44 -
OR 
(c) an arbitral proceeding under the Arbitration Institute of the 
Stockholm Chamber of Commerce. 
(5) (a) The consent given in paragraph (3) together with the written 
consent of the Investor given pursuant to paragraph (4) shall 
satisfy the requirement for: 
(i) written consent of the parties to a dispute for 
purposes of Chapter II of the ICSID Convention and for 
purposes of the Additional Facility Rules; 
(ii) an "agreement in writing" for purposes of article II of 
the United Nations Convention on the Recognition and 
Enforcement of Foreign Arbitral Awards, done at New 
York, 10 June 1958 (hereinafter referred to as the "New 
York Convention"); and 
(iii) "the parties to a contract [to] have agreed in writing" 
for the purposes of article 1 of the UNCITRAL 
Arb i trat ion Rules. 
(b) Any arbitration under this Article shall at the request of 
any party to the dispute be held in a state that is a party 
to the New York Convention. Claims submitted to arbitration 
hereunder shall be considered to arise out of a commercial 
relationship or transaction for the purposes of article 1 of 
that Convent ion. 
(6) A tribunal established under paragraph (4) shall decide the issues 
in dispute in accordance with this Treaty and applicable rules and 
principles of international law. 
(7) An Investor other than a natural person which has the nationality 
of a Contracting Party party to the dispute on the date of the 
written request referred to in paragraph (4) and which, before a 
dispute between it and that Contracting Party arises, is 
controlled by Investors of another Contracting Party, shall for 
the purpose of article 25(2)(b) of the ICSID Convention be treated 
as a "national of another Contracting State" and shall for the 
purpose of article 1(6) of the Additional Facility Rules be 
treated as a "national of another State". 
45 
(8) The awards of arbitration, which may include an award of interest, 
shall be final and binding upon the parties to the dispute. An 
award of arbitration concerning a measure of a sub-national 
government or authority of the disputing Contracting Party shall 
provide that the Contracting Party may pay monetary damages in 
lieu of any other remedy granted. Each Contracting Party shall 
carry out without delay any such award and shall make provision 
for the effective enforcement in its Area of such awards. 
ARTICLE 27 
SETTLEMENT OF DISPUTES BETWEEN CONTRACTING PARTIES 
(1) Contracting Parties shall endeavour to settle disputes concerning 
the application or interpretation of this Treaty through 
diplomatic channels. 
(2) If a dispute has not been settled in accordance with paragraph 
(1) within a reasonable period of time, either party thereto may, 
except as otherwise provided in this Treaty or agreed in writing 
by the Contracting Parties, and as concerns the application or 
interpretation of Article 6 or Article 19 or, for Contracting 
Parties listed in Annex IA, the last sentence of Article 10(1), 
upon written notice to the other party to the dispute submit the 
matter to an ad hoc tribunal under this Article. 
(3) Such an ad hoc arbitral tribunal shall be constituted as follows: 
(a) The Contracting Party instituting the proceedings shall 
appoint one member of the tribunal and inform the other 
Contracting Party to the dispute of its appointment within 30 
days of receipt of the notice referred to in paragraph (2) 
by the other Contracting Party. 
(b) Within 60 days of the receipt of the written notice referred 
to in paragraph (2), the other Contracting Party party to the 
dispute shall appoint one member. If the appointment is not 
made within the time limit prescribed, the Contracting Party 
- 46 
having instituted the proceedings may, within 90 days of the 
receipt of the written notice referred to in paragraph (2) 
request that the appointment be made in accordance with 
paragraph (3)(d). 
(c) A third member, who may not be a national or citizen of a 
Contracting Party party to the dispute, shall be appointed 
by the Contracting Parties parties to the dispute. That 
member shall be the President of the tribunal. If, within 150 
days of the receipt of the notice referred to in 
paragraph (2), the Contracting Parties are unable to agree on 
the appointment of a third member, that appointment shall be 
made, in accordance with paragraph (3)(d), at the request of 
either Contracting Party submitted within 180 days of the 
receipt of that notice. 
(d) Appointments requested to be made in accordance with this 
paragraph shall be made by the Secretary-General of the 
Permanent Court of International Arbitration within 30 days 
of the receipt of a request to do so. If the Secretary-
General is prevented from discharging this task, the 
appointments shall be made by the First Secretary of the 
Bureau. If the latter, in turn, is prevented from discharging 
this task, the appointments shall be made by the most senior 
Deputy. 
(e) Appointments made in accordance with paragraph (3)(a) to (d) 
shall be made with regard to the qualifications and 
experience, particularly in matters covered by this Treaty, 
of the members to be appointed. 
(f) In the absence of an agreement to the contrary between the 
Contracting Parties, the Arbitration Rules of UNCITRAL shall 
govern, except to the extent modified by the Contracting 
Parties parties to the dispute or by the arbitrators. The 
tribunal shall take its decisions by a majority vote of its 
members. 
- 47 -
(g) The tribunal shall decide the dispute in accordance with this 
Treaty and applicable rules and principles of international 
law. 
(h) The arbitral award shall be final and binding upon the 
Contracting Parties parties to the dispute. 
(i) Where, in making an award, a tribunal finds that a measure of 
a regional or local government or authority within the Area 
of a Contracting Party listed in Part I of Annex P is not in 
conformity with this Treaty, either party to the dispute may 
invoke the provisions of Part II of Annex P. 
(j) The expenses of the tribunal, including the remuneration of 
its members, shall be borne in equal shares by the 
Contracting Parties parties to the dispute. The tribunal 
may, however, at its discretion direct that a higher 
proportion of the costs be paid by one of the Contracting 
Parties parties to the dispute. 
(k) Unless the Contracting Parties parties to the dispute agree 
otherwise, the tribunal shall sit in The Hague, and use the 
premises and facilities of the Permanent Court of 
Arbitrât ion. 
(I) A copy of the award shall be deposited with the Secretariat 
which shall make it generally available. 
ARTICLE 28 
NON-APPLICATION OF ARTICLE 27 TO TRADE DISPUTES 
A dispute between Contracting Parties with respect to the application 
of Article 5 or 29 shall not be settled under Article 27 unless the 
Contracting Parties parties to the dispute so agree. 
- 48 -
PART VI 
TRANSITIONAL 
ARTICLE 29 
INTERIM PROVISIONS ON TRADE RELATED MATTERS 
(1) The provisions of this Article shall apply to trade in Energy 
Materials and Products while any Contracting Party is not a party 
to the GATT and Related Instruments. 
(2) (a) Trade in Energy Materials and Products between Contracting 
Parties at least one of which is not a party to the GATT or a 
relevant Related Instrument shall be governed, subject to 
sub-paragraphs (b) and (c) and to the exceptions and rules 
provided for in Annex G, by the provisions of the GATT and 
Related Instruments, as applied on 1 March 1994, and 
practised with regard to Energy Materials and Products by 
parties to the GATT among themselves, as if all Contracting 
Parties were parties to the GATT and applied the Related 
Instruments. 
(b) Such trade of a Contracting Party which is a state that was a 
constituent part of the former Union of Soviet Socialist 
Republics may instead be governed, subject to the provisions 
of Annex TFU, by an agreement between two or more such 
states, until 1 December 1999 or the admission of that 
Contracting Party to the GATT, whichever is the earlier. 
(c) As concerns trade between any two parties to the GATT, sub­
paragraph (a) shall not apply if either of those parties is 
not a party to GATT 1947. 
(3) Each signatory to this Treaty, and each state or Regional Economic 
Integration Organization acceding to this Treaty shall, on the 
date of its signature or of its deposit of its instrument of 
accession, provide to the Secretariat a list of all tariff rates 
- 49 -
and other charges levied on Energy Materials and Products at the 
time of importation or exportation, notifying the level of such 
rates and charges applied on such date of signature or deposit. 
Any changes to such rates or other charges shall be notified to 
the Secretariat which shall inform the Contracting Parties of such 
changes. 
(4) Each Contracting Party shall endeavour not to increase any tariff 
rate or other charge levied at the time of importation or 
exportât ion 
(a) in the case of the importation of Energy Materials and 
Products described in Part I of the Schedule relating to the 
Contracting Party referred to in article II of the GATT, 
above the level set forth in that Schedule, if the 
Contracting Party is a party to the GATT; 
(b) in the case of the exportation of Energy Materials and 
Products and that of their importation if the Contracting 
Party is not a party to the GATT, above the level most 
recently notified to the Secretariat, except as permitted by 
the provisions made applicable by paragraph (2)(a). 
(5) A Contracting Party may increase such tariff rate or other charge 
above the level referred to in paragraph (4) only if: 
(a) in the case of a rate or other charge levied at the time of 
importation, a provision of the GATT or of a Related 
Instrument, other than those listed in Annex G, permits such 
action; or 
(b) it has, to the fullest extent practicable under its 
legislative procedures, notified the Secretariat of its 
proposal for such an increase, given other interested 
Contracting Parties reasonable opportunity for consultation 
with respect to its proposal, and accorded consideration to 
any representations from such Contracting Parties. 
50 -
(6) Signatories undertake to commence negotiations not later than 1 
January 1995 with a view to concluding by 1 January 1998, as 
appropriate in the light of any developments in the world trading 
system, a text of an amendment to this Treaty which shall, subject 
to conditions to be laid down therein, commit each Contracting 
Party not to increase such tariffs or charges beyond the level 
prescribed under that amendment. 
(7) Annex D to this Treaty shall apply to disputes regarding 
compliance with provisions applicable to trade under this Article 
and, unless both Contracting Parties agree otherwise, to disputes 
regarding compliance with Article 5 between Contracting Parties at 
least one of which is not a party to the GATT, except that Annex D 
shall not apply to any dispute between Contracting Parties, the 
substance of which arises under an agreement that: 
(a) has been notified in accordance with and meets the other 
requirements of paragraph (2)(b) and Annex TFU; or 
(b) establishes a free-trade area or a customs union as described 
in article XXIV of the GATT. 
ARTICLE 30 
DEVELOPMENTS IN INTERNATIONAL TRADING ARRANGEMENTS 
Contracting Parties undertake that in the I ight of the results' of the 
Uruguay Round of Multilateral Trade Negotiations embodied principally 
in the Final Act thereof done at Marrakesh, 15 April 1994, they will 
commence consideration not later than 1 July 1995 or- the entry into 
force of this Treaty, whichever is the later, of appropriate amendments 
to this Treaty with a view to the adoption of any such amendments by 
the Charter Conference. 
- 51 -
ARTICLE 31 
ENERGY RELATED EQUIPMENT 
The provisional Charter Conference shall at its first meeting commence 
examination of the inclusion of energy related equipment in the trade 
provisions of this Treaty. 
ARTICLE 32 
TRANSITIONAL ARRANGEMENTS 
(1) In recognition of the need for time to adapt to the requirements 
of a market economy, a Contracting Party listed in Annex T may 
temporarily suspend full compliance with its obligations under 
one or more of the following provisions of this Treaty, subject to 
the conditions in paragraphs (3) to (6): 
Article 6, paragraphs (2) and (5) 
Article 7, paragraph (4) 
Article 9, paragraph (1) 
Article 10, paragraph (7) - specific measures 
Article 14, paragraph (1)(d) - related only to transfer of unspent 
earnings 
Article 20, paragraph (3) 
Article 22, paragraphs (1) and (3) 
(2) Other Contracting Parties shall assist any Contracting Party which 
has suspended full compliance under paragraph (1) to achieve the 
conditions under which such suspension can be terminated. This 
assistance may be given in whatever form the other Contracting 
Parties consider most effective to respond to the needs notified 
under paragraph (4)(c) including, where appropriate, through 
bilateral or multilateral arrangements. 
- 52 
(3) The applicable provisions, the stages towards full implementation 
of each, the measures to be taken and the date or, exceptionally, 
contingent event, by which each stage shall be completed and 
measure taken are listed in Annex T to this Treaty for each 
Contracting Party claiming transitional arrangements. Each such 
Contracting Party shall take the measure listed by the date 
indicated for the relevant provision and stage as set out in 
Annex T. Contracting Parties which have temporarily suspended full 
compliance under paragraph (1) undertake to comply fully with the 
relevant obligations by 1 July 2001. Should a Contracting Party 
find it necessary, due to exceptional circumstances, to request 
that the period of such temporary suspension be extended or that 
any further temporary suspension not previously listed in Annex T 
be introduced, the decision on a request to amend Annex T shall be 
made by the Charter Conference. 
(4) A Contracting Party which has invoked transitional arrangements 
shall notify the Secretariat no less often than once every 12 
months : 
(a) of the implementation of any measures listed in its Annex T 
and of its general progress to full compliance; 
(b) of the progress it expects to make during the next 12 months 
towards full compliance with its obligations, of any problem 
it foresees and of its proposals for dealing with that 
problem; 
(c) of the need for technical assistance to facilitate completion 
of the stages set out in Annex T as necessary for the ful I 
implementation of this Treaty, or to deal with any problem 
notified pursuant to sub-paragraph (b) as well as to promote 
other necessary market oriented reforms and modernization of 
its energy sector-, 
(d) of any possible need to make a request of the kind referred 
to in paragraph (3). 
53 
(5) The Secretariat shall: 
(a) circulate to all Contracting Parties the notifications 
referred to in paragraph (4); 
(b) circulate and actively promote, relying where appropriate on 
arrangements existing within other international 
organizations, the matching of needs for and offers of 
technical assistance referred to in paragraphs (2) and 
(4)(c); 
(c) circulate to all Contracting Parties at the end of each six 
month period a summary of any notifications made under 
paragraph (4)(a) or (d). 
(6) The Charter Conference shall annually review the progress by 
Contracting Parties towards implementation of the provisions of 
this Article and the matching of needs and offers of technical 
assistance referred to in paragraphs (2) and (4)(c). In the course 
of that review it may decide to take appropriate action. 
- 54 -
PART VI I 
STRUCTURAL AND INSTITUTIONAL 
ARTICLE 33 
ENERGY CHARTER PROTOCOLS AND DECLARATIONS 
(1) The Charter Conference may authorize the negotiation of a number 
of Energy Charter Protocols or Declarations in order to pursue the 
objectives and principles of the Charter. 
(2) Any signatory to the Charter may participate in such negotiation. 
(3) A state or Regional Economic Integration Organization shall not 
become a party to a Protocol or Declaration unless it is, or 
becomes at the same time, a signatory to the Charter and a 
Contracting Party to this Treaty. 
(4) Subject to paragraphs (3) and (6)(a), final provisions applying to 
a Protocol shall be defined in that Protocol. 
(5) A Protocol shall apply only to the Contracting Parties which 
consent to be bound by it, and shall not derogate from the rights 
and obligations of those Contracting Parties not party to the 
Protocol. 
(6) (a) A Protocol may assign duties to the Charter Conference and 
functions to the Secretariat, provided that no such 
assignment may be made by an amendment to a Protocol unless 
that amendment is approved by the Charter Conference, whose 
approval shall not be subject to any provisions of the 
Protocol which ?re authorized by sub-paragraph (b). 
(b) A Protocol which provides for decisions thereunder to be 
taken by the Charter Conference may, subject to sub­
paragraph (a), provide with respect to such decisions: 
- 55 -
(i) for voting rules other than those contained in 
Article 36; 
(ii) that only parties to the Protocol shall be considered to 
be Contracting Parties for the purposes of Article 36 or 
eligible to vote under the rules provided for in the 
Protocol. 
ARTICLE 34 
CHARTER CONFERENCE 
(1) The Contracting Parties shall meet periodically in a Conference 
(hereinafter referred to as "the Charter Conference") at which 
each Contracting Party shall be entitled to have one 
representative. Ordinary meetings shall be held at intervals 
determined by the Charter Conference. 
(2) Extraordinary meetings of the Charter Conference may be held at 
such times as may be determined by the Charter Conference, or at 
the written request of any Contracting Party, provided that, 
within six weeks of the request being communicated to the 
, Contracting Parties by the Secretariat, it is supported by at 
least one-third of the Contracting Parties. 
(3) The functions of the Charter Conference shall be to: 
(a) carry out the duties assigned to it by this Treaty and any 
Protocols; 
(b) keep under review and facilitate the implementation of the 
principles of the Charter and of the provisions of this 
Treaty and the Protocols; 
(c) facilitate in accordance with this Treaty and the Protocols 
the co-ordination of appropriate general measures to carry 
out the principles of the Charter; 
(d) consider and adopt programmes of work to be carried out by 
the Secretar iat; 
56 -
(e) consider and approve the annual accounts and budget of the 
Secretar iat ; 
(f) consider and approve or adopt the terms of any headquarters 
or other agreement, including privileges and immunities 
considered necessary for the Charter Conference and the 
Secretariat; 
(g) encourage co-operative efforts aimed at facilitating and 
promoting market oriented reforms and modernization of energy 
sectors in those countries of Central and Eastern Europe and 
the former Union of Soviet Socialist Republics undergoing 
economic transition; 
(h) authorize and approve the terms of reference for the 
negotiation of Protocols, and consider and adopt the texts 
thereof and of amendments thereto; 
(i) authorize the negotiation of Declarations, and approve their 
issuance; 
(j) decide on accessions to this Treaty; 
(k) authorize the negotiation of and consider and approve or 
adopt association agreements; 
(I) consider and adopt texts of amendments to this Treaty; 
(m) consider and approve modifications of and technical changes 
to the Annexes to this Treaty; 
(n) appoint the Secretary-General and take all decisions 
necessary for the establishment and functioning of the 
Secretariat including the structure, staff levels and 
standard terms of employment of officials and employees. 
(4) In the performance of its duties, the Charter Conference, through 
the Secretariat, shall co-operate with and make as full a use as 
possible, consistently with economy and efficiency, of the 
services and programmes of other institutions and organizations 
with established competence in matters related to the objectives 
of this Treaty. 
(5) The Charter Conference may establish such subsidiary bodies as it 
considers appropriate for the performance of its duties. 
(6) The Charter Conference shall consider and adopt rules of procedure 
and financial rules. 
57 -
(7) In 1999 and thereafter at intervals (of not more than five years) 
to be determined by the Charter Conference, the Charter Conference 
shall thoroughly review the functions provided for in this Treaty 
in the light of the extent to which the provisions of this Treaty 
and Protocols have been implemented. At the conclusion of each 
review the Charter Conference may amend or abolish the functions 
specified in paragraph (3) and may discharge the Secretariat. 
ARTICLE 35 
SECRETARIAT 
(1) In carrying out its duties, the Charter Conference shall have a 
Secretariat which shall be composed of a Secretary-General and 
such staff as are the minimum consistent with efficient 
performance. 
(2) The Secretary-General shall be appointed by the Charter 
Conference. The first such appointment shall be for a maximum 
per iod of f ive years. 
(3) In the performance of its duties the Secretariat shall be 
responsible to and report to the Charter Conference. 
(4) The Secretariat shall provide the Charter Conference with all 
necessary assistance for the performance of its duties and shall 
carry out the functions assigned to it in this Treaty or in any 
Protocol and any other functions assigned to it by the Charter 
Conference. 
(5) The Secretariat may enter into such administrative and contractual 
arrangements as may be required for the effective discharge of its 
funct ions. 
- 58 -
ARTICLE 36 
VOTING 
(1) Unanimity of the Contracting Parties Present and Voting at the 
meeting of the Charter Conference where such matters fall to be 
decided shall be required for decisions by the Charter Conference 
to: 
(a) adopt amendments to this Treaty other than amendments to 
Articles 34 and 35 and Annex T; 
(b) approve accessions to this Treaty under Article 41 by states 
or Regional Economic Integration Organizations which were not 
signatories to the Charter as of 16 June 1995; 
(c) authorize the negotiation of and approve or adopt the text of 
association agreements; 
(d) approve modifications to Annexes EM, NI, G and B; 
(e) approve technical changes to the Annexes to this Treaty; and 
(f) approve the Secretary-General's nominations of panelists 
under Annex D, paragraph (7). 
The Contracting Parties shall make every effort to reach agreement 
by consensus on any other matter requiring their decision under 
this Treaty. If agreement cannot be reached by consensus, 
paragraphs (2) to (5) shall apply. 
(2) Decisions on budgetary matters referred to in Article 34(3)(e) 
shall be taken by a qualified majority of Contracting Parties 
whose assessed contributions as specified in Annex B represent, in 
combination, at least three-fourths of the total assessed 
contributions specified therein. 
(3) Decisions on matters referred to in Article 34(7) shall be taken 
by a three-fourths majority of the Contracting Parties. 
- 59 -
(4) Except in cases specified in paragraphs (1)(a) to (f), (2) and (3) 
or as otherwise specified elsewhere in this Treaty, decisions 
provided for in this Treaty shall be taken by a three-fourths 
majority of the Contracting Parties Present and Voting at the 
meeting of the Charter Conference at which such matters fall to be 
decided. 
(5) For purposes of this Articie,"Contracting Parties Present and 
Voting" means Contracting Parties present and casting affirmative 
or negative votes, provided that the Charter Conference may decide 
upon rules of procedure to enable such decisions to be taken by 
Contracting Parties by correspondence. 
(6) Except as provided in paragraph (2), no decision referred to in 
this Article shall be valid unless it has the support of a simple 
majority of the Contracting Parties. 
(7) A Regional Economic Integration Organization shall, when voting, 
have a number of votes equal to the number of its member states 
which are Contracting Parties to this Treaty; provided that such 
an Organization shall not exercise its right to vote if its member 
states exercise theirs, and vice versa. 
(8) In the event of persistent arrears in a Contracting Party's 
discharge of financial obligations under this Treaty, the Charter 
Conference may suspend that Contracting Party's voting rights in 
whole or in part. 
ARTICLE 37 
FUNDING PRINCIPLES 
(1) Each Contracting Party shall bear its own costs of representation 
at meetings of the Charter Conference and any subsidiary bodies. 
(2) The cost of meetings of the Charter Conference and any subsidiary 
bodies shall be regarded as a cost of the Secretariat. 
- 60 -
(3) The costs of the Secretariat shall be met by the Contracting 
Parties assessed according to their capacity to pay, determined as 
specified in Annex B, the provisions of which may be modified in 
accordance with Article 36(1)(d). 
(4) A Protocol shall contain provisions to assure that any costs of 
the Secretariat arising from that Protocol are borne by the 
parties thereto. 
(5) The Charter Conference may in addition accept voluntary 
contributions from one or more Contracting Parties or from other 
sources. Costs met from such contributions shall not be 
considered costs of the Secretariat for the purposes of 
paragraph (3). 
- 61 -
PART VIII 
FINAL PROVISIONS 
ARTICLE 38 
SIGNATURE 
This Treaty shall be open for signature at Lisbon from 17 December 1994 
to 16 June 1995 by the states and Regional Economic Integration 
Organizations which have signed the Charter. 
ARTICLE 39 
RATIFICATION, ACCEPTANCE OR APPROVAL 
This Treaty shall be subject to ratification, acceptance or approval by 
signatories. Instruments of ratification, acceptance or approval shall 
be deposited with the Depositary. 
ARTICLE 40 
APPLICATION TO OTHER TERRITORIES 
(1) Any state or Regional Economic Integration Organization may at the 
time of signature, ratification, acceptance, approval or 
accession, by a declaration deposited with the Depositary, 
declare that the Treaty shall be binding upon it with respect to 
all the other territories for the international relations of which 
it is responsible, or to one or more of them. Such declaration 
shall take effect at the time the Treaty enters into force for 
that Contracting Party. 
- 62 -
(2) Any Contracting Party may at a later date, by a declaration 
deposited with the Depositary, bind itself under this Treaty with 
respect to other territory specified in the declaration. In 
respect of such territory the Treaty shall enter into force on the 
ninetieth day following the receipt by the Depositary of such 
declaration. 
(3) Any declaration made under the two preceding paragraphs may, in 
respect of any territory specified in such declaration, be 
withdrawn by a notification to the Depositary. The withdrawal 
shall, subject to the applicability of Article 47(3),. become 
effective upon the expiry of one year after the date of receipt of 
such notification by the Depositary. 
ARTICLE 41 
ACCESSION 
This Treaty shall be open for access ion, from the date on which the 
Treaty is closed for signature, by states and Regional Economic 
Integration Organizations which have signed the Charter, on terms to be 
approved by the Charter Conference. The instruments of accession shall 
be deposited with the Depositary. 
ARTICLE 42 
AMENDMENT 
(1) Any Contracting Party may propose amendments to this Treaty. 
(2) The text of any proposed amendment to this Treaty shall be 
communicated to the Contracting Parties by the Secretariat at 
least three months before the date on which it is proposed for 
adoption by the Charter Conference. 
- 63 -
(3) Amendments tö this Treaty, texts of which have been adopted by the 
Charter Conference, shall be communicated by the Secretariat to 
the Depositary which shall submit them to all Contracting Parties 
for ratification, acceptance or approval. 
(4) Ratification, acceptance or approval of amendments to this Treaty 
shall be notified to the Depositary in writing. Amendments shall 
enter into force between Contracting Parties having ratified, 
accepted or approved them on the ninetieth day after the receipt 
by the Depositary of notification of their ratification, 
acceptance or approval by at least three-fourths of the 
Contracting Parties. Thereafter the amendments shall enter into 
force for any other Contracting Party on the ninetieth day after 
that Contracting Party deposits its instrument of ratification, 
acceptance or approval of the amendments. 
ARTICLE 43 
ASSOCIATION AGREEMENTS 
(1) The Charter Conference may authorize the negotiation of 
association agreements with states or Regional Economic 
Integration Organizations, or with international organizations, in 
order to pursue the objectives and principles of the Charter and 
the provisions of this Treaty or one or more Protocols. 
(2) The relationship established with and the rights enjoyed and 
obligations incurred by an associating state, Regional Economic 
Integration Organization, or international organization shall be 
appropriate to the particular circumstances of the association, 
and in each case shall be set out in the association agreement. 
- 64 
ARTICLE 44 
ENTRY INTO FORCE 
(1) This Treaty shall enter into force on the ninetieth day after the 
date of deposit of the thirtieth instrument of ratification, 
acceptance or approval thereof, or of accession thereto by a state 
or Regional Economic Integration Organization which was a 
signatory to the Charter as of 16 June 1995. 
(2) For each state or Regional Economic Integration Organization 
which ratifies, accepts or approves this Treaty or accedes thereto 
after the deposit of the thirtieth instrument of ratification, 
acceptance or approval, it shall enter into force on the ninetieth 
day after the date of deposit by such state or Regional Economic 
Integration Organization of its instrument of ratification, 
acceptance, approval or accession. 
(3) For the purposes of paragraph (1), any instrument deposited by a 
Regional Economic Integration Organization shall not be counted as 
additional to those deposited by member states of such 
Organizat ion. 
ARTICLE 45 
PROVISIONAL APPLICATION 
(1) Each signatory agrees to apply this Treaty provisionally pending 
its entry into force for such signatory in accordance with Article 
44, to the extent that such provisional application is not 
inconsistent with its constitution, laws or regulations. 
(2) (a) Notwithstanding paragraph (1) any signatory may, when 
signing, deliver to the Depositary a declaration that it is 
not able to accept provisional application. The obligation 
- 65 -
contained in paragraph (1) shall not apply to a signatory 
making such a declaration. Any such signatory may at any time 
withdraw that declaration by written notification to the 
Depositary. 
(b) Neither a signatory which makes a declaration in accordance 
with paragraph (2)(a) nor Investors of that signatory may 
claim the benefits of provisional application under paragraph 
(1). 
(c) Notwithstanding paragraph (2)(a), any signatory making a 
declaration referred to in paragraph (2)(a) shall apply 
Part VI I provisionally, and shall apply paragraphs (4) and 
(7), pending the entry into force of the Treaty in 
accordance with Article 44, to the extent that such 
provisional application is not inconsistent with its laws or 
régulât ions. 
(3) (a) Any signatory may terminate its provisional application of 
this Treaty by written notification to the Depositary of its 
intention not to become a Contracting Party to this Treaty. 
Termination of provisional application for any signatory 
shall take effect upon the expiration of 60 days from the 
date on which such signatory's written notification is 
received by the Depositary. 
(b) In the event that a signatory terminates provisional 
application under paragraph (3)(a), the obligation of the 
signatory under paragraph (1) to apply Parts III and V with 
respect to any Investments made in its Area' during such 
provisional application by Investors of other signatories 
shall nevertheless remain in effect with respect to those 
Investments for twenty years following the effective date of 
termination, except as otherwise provided in paragraph 
(3)(c). 
- 66 
(c) Paragraph (3)(b) shall not apply to any signatory listed in 
Annex PA. A signatory shall be removed from the list in 
Annex PA effective upon delivery to the Depositary of a 
request therefor. 
(4) Pending the entry into force of this Treaty the signatories shall 
meet periodically in the provisional Charter Conference, the first 
meeting of which shall be convened by the provisional Secretariat 
designated under paragraph (5) not later than 180 days after the 
opening date for signature of this Treaty as specified in 
Article 38. 
(5) The functions of the Secretariat shall be carried out on an 
interim basis by a provisional Secretariat until the entry into 
force of this Treaty pursuant to Article 44 and the appointment of 
a Secretariat under Article 35. 
(6) The signatories shall, in accordance with and subject to the 
provisions of paragraph (1) or (2)(c) as appropriate, contribute 
to the costs of the provisional Secretariat as if the signatories 
were Contracting Parties under Article 37(3). Any modifications 
made to Annex B by the signatories shall terminate upon the entry 
into force of this Treaty. 
(7) A state or Regional Economic Integration Organization which, prior 
to the Treaty's entry into force, accedes to this Treaty in 
accordance with Article 41 shall, pending the Treaty's entry into 
force, have the rights and assume the obligations of a signatory 
under th is Art icie. 
ARTICLE 46 
RESERVATIONS 
No reservations may be made to this Treaty. 
67 -
ARTICLE 47 
WITHDRAWAL 
(1) At any time after five years from the date on which this Treaty 
has entered into force for a Contracting Party, that Contracting 
Party may give written notification to the Depositary of its 
withdrawal from this Treaty. 
(2) Any such withdrawal shall take effect upon the expiry of one year 
after the date of the receipt of the notification by the 
Depositary, or on such later date as may be specified in the 
notification of withdrawal. 
(3) The provisions of this Treaty shall continue to apply to 
Investments made in the Area of a Contracting Party by Investors 
of other Contracting Parties or in the Area of other Contracting 
Parties by Investors of that Contracting Party as of the date when 
that Contracting Party's withdrawal from this Treaty takes effect 
for a period of 20 years from such date. 
(4) All Protocols to which a Contracting Party is party shall cease 
to be in force for that Contracting Party on the effective date of 
its withdrawal from this Treaty. 
ARTICLE 48 
STATUS OF ANNEXES AND DECISIONS 
The Annexes to this Treaty and Decisions No 1 , 2, 3 and 4 annexed to 
the Final Act of the European Energy Charter Conference signed at 
Lisbon on 17 December 1994 are integral parts of this Treaty. 
- 68 -
ARTICLE 49 
DEPOSITARY 
The Government of the Portuguese Republic shall be the Depositary of 
this Treaty. 
ARTICLE 50 
AUTHENTIC TEXTS 
In witness whereof the undersigned, being duly authorized to that 
effect, have signed this Treaty in English, French, German, Italian, 
Russian and Spanish, of which every text is equally authentic, in one 
original, which will be deposited with the Government of the Portuguese 
Republ ic. 
Done at Lisbon on the seventeenth day of December in the year one 
thousand nine hundred and ninety-four. 
14 September 1994 
TEXT FOR ADOPTION 
ANNEXES TO THE ENERGY CHARTER TREATY 
- 1 -
TABLE OF CONTENTS 
Page 
1. ANNEX EM 
ENERGY MATERIALS AND PRODUCTS 
(In accordance with Article 1(4)) 3 
2. ANNEX NI 
NON-APPLICABLE ENERGY MATERIALS AND PRODUCTS 
FOR DEFINITION OF "ECONOMIC ACTIVITY IN THE ENERGY SECTOR" 
(In accordance with Article 1(5)) 6 
3. ANNEX TRM 
NOTIFICATION AND PHASE-OUT (TRIMs) 
(In accordance with Article 5(4)) 7 
4. ANNEX N 
LIST OF CONTRACTING PARTIES REQUIRING AT LEAST * 
3 SEPARATE AREAS TO BE INVOLVED IN A TRANSIT 
(In accordance with Articie 7(10)(a)) 9 
5. ANNEX VC 
LIST OF CONTRACTING PARTIES WHICH HAVE MADE VOLUNTARY 
BINDING COMMITMENTS IN RESPECT OF ARTICLE 10(3) 
(In accordance with Article 10(6)) 10 
6. ANNEX ID 
LIST OF CONTRACTING PARTIES NOT ALLOWING AN INVESTOR TO 
RESUBMIT THE SAME DISPUTE TO INTERNATIONAL ARBITRATION 
AT A LATER STAGE UNDER ARTICLE 26 
(In accordance with Article 26(3)(b)(i)) 11 
7. ANNEX IA 
LIST OF CONTRACTING PARTIES NOT ALLOWING AN INVESTOR TO 
SUBMIT A DISPUTE CONCERNING THE LAST SENTENCE OF 
ARTICLE 10(1) TO INTERNATIONAL ARBITRATION 
(In accordance with Art.icie 26(3)(c)) 12 
8. ANNEX P 
SPECIAL SUB-NATIONAL DISPUTE PROCEDURE 
(In accordance with Article 27(3) ( i.) ) 13 
9. ANNEX G 
EXCEPTIONS AND RULES GOVERNING THE APPLICATION OF 
THE PROVISIONS OF THE GATT AND RELATED INSTRUMENTS 
(In accordance with Article 29(2)(a)) 16 
10. ANNEX TFU 
PROVISIONS FOR TRADE AGREEMENTS BETWEEN STATES 
WHICH WERE CONSTITUENT PARTS OF THE FORMER UNION 
OF SOVIET SOCIALIST REPUBLICS 
(In accordance with Article 29(2)(b)) 21 
- 2 -
11. ANNEX D 
INTERIM PROVISIONS FOR TRADE DISPUTE SETTLEMENT 
(In accordance with Article 29(7)) 24 
12. ANNEX B 
FORMULA FOR ALLOCATING CHARTER COSTS 
(In accordance with Article 37(3)) 33 
13. ANNEX PA 
LIST OF SIGNATORIES WHICH DO NOT ACCEPT THE 
PROVISIONAL APPLICATION OBLIGATION OF ARTICLE 45(3)(b) 
(In accordance with Article 45(3)(c)) 34 
14. ANNEX T 
LIST OF CONTRACTING PARTIES' TRANSITIONAL MEASURES 
(In accordance with Article 32(1)) 35 
- 3 -
1. ANNEX EM 
ENERGY MATERIALS AND PRODUCTS 
(In accordance with Article 1(4)) 
Nuclear 26.12 Uranium or thorium ores and concentrates. 
Energy 
26.12.10 Uranium ores and concentrates. 
26.12.20 Thorium ores and concentrates. 
28.44 Radioactive chemical elements and radioactive 
isotopes (including the fissile or fertile chemical 
elements and isotopes) and their compounds-, mixtures 
and residues containing these products. 
28.44.10 Natural uranium and its compounds. 
28.44.20 Uranium enriched in U235 and its 
compounds; plutonium and its compounds. 
28.44.30 Uranium depleted in U235 and its 
compounds; thorium and its compounds. 
28.44.40 Radioactive elements and isotopes- and 
radioactive compounds other than 
28.44.10, 28.44.20 or 28.44.30. 
28.44.50 Spent (irradiated) fuel elements 
(cartridges) of nuclear reactors. 
28.45.10 Heavy water (deuterium oxide). 
- 4 -
Coal, Natural 27.01 
Gas, Petroleum 
and Petroleum 
Products, 27.02 
Electr ica I 
Energy Coal, briquettes, ovoids and similar solid 
fuels manufactured from coal. 
Lignite, whether or not agglomerated 
excluding jet. 
27.03 Peat (including peat litter), whether or not 
agglomerated. 
27.04 Coke and semi-coke or coal, of lignite or of 
peat, whether or not agglomerated; retort 
carbon. 
27.05 Coal gas, water gas, producer gas and similar 
gases, other than petroleum gases and other 
gaseous hydrocarbons. 
27.06 Tar distilled from coal, from lignite or from 
peat, and other mineral tars, whether or not 
• dehydrated or partially distilled, including 
reconstituted tars. 
27.07 Oils and other products of the distillation of 
high temperature coal tar-, similar products in 
which the weight of the aromatic constituents 
exceeds that of the non-aromatic constituents 
(e.g., benzole, toluole, xylole, naphtalene, 
other aromatic hydrocarbon mixtures,phenols, 
creosote oils and others). 
27.08 Pitch and pitch coke, obtained from coal tar or 
from other mineral tars. 
27.09 Petroleum oils and oils obtained from bituminous 
minerals, crude. 
27.10 Petroleum oils and oils obtained from bituminous 
minerals, other than crude. 
- 5 
27.11 Petroleum gases and other gaseous hydrocarbons 
L iqu i f ied: 
- natural gas 
- propane 
- butanes 
- ethylene, propylene, butylène and butadiene 
(27.11.14) 
- other 
In gaseous state: 
- natural gas 
- other 
27.13 Petroleum coke, petroleum bitumen and other 
residues of petroleum oils or of oils obtained 
from bituminous minerals. 
27.14 Bitumen and asphalt, natural; bituminous or oil 
shale and tar sands; asphaltites and asphaltic 
rocks. 
27.15 Bituminous mixtures based on natural asphalt, 
on natural bitumen, on petroleum bitumen, on 
mineral tar or on mineral tar pitch (e.g., 
bituminous mastics, cut-backs). 
27.16 Electrical energy. 
Other Energy 
44.01.10 Fuel wood, in logs, in billets, in twigs, in 
faggots or in similar forms. 
44.02 Charcoal (including charcoal from shells or 
nuts), whether or not agglomerated. 
- 6 -
2. ANNEX NI 
NON-APPLICABLE ENERGY MATERIALS AND PRODUCTS 
FOR DEFINITION OF "ECONOMIC ACTIVITY IN THE ENERGY SECTOR 
(In accordance with Article 1(5)) 
27.07 Oils and other products of the distillation of high 
temperature coal tar-, similar products in which the weight of 
the aromatic constituents exceeds that of the non-aromatic 
constituents (e.g., benzole, toluole, xylole, naphtalene, 
other aromatic hydrocarbon mixtures, phenols, creosote oils 
and others) . 
44.01.10 Fuel wood, in logs, in billets, in twigs, in faggots or in 
s imi lar forms. 
44.02 Charcoal (including charcoal from shells or nuts), whether 
or not agglomerated. 
- 7 -
3. ANNEX TRM 
NOTIFICATION AND PHASE-OUT (TR IMs) 
(In accordance with Article 5(4)) 
(1) Each Contracting Party shall notify to the Secretariat. a I I trade 
related investment measures which it applies that are not in 
conformity with the provisions of Article 5, within: 
(a) 90 days after the entry into force of this Treaty if the 
Contracting Party is a party to the GATT; or 
(b) 12 months after the entry into force of this Treaty if the 
Contracting Party is not a party to the GATT. 
Such trade related investment measures of general or specific 
application shall be notified along with their principal 
features. 
(2) In the case of trade related investment measures applied under 
discretionary authority, each specific application shall- be 
notified. Information that would prejudice the legitimate 
commercial interests of particular enterprises need not be 
d isclosed. 
(3) Each Contracting Party shall eliminate all trade related 
investment measures which are notified under paragraph (1) within 
(a) two years from the date of entry into force of this Treaty if 
the Contracting Party is a party to the GATT; or 
(b) three years from the date of entry into force of this Treaty 
if the Contracting Party is not a party to the GATT. 
(4) During the applicable period referred to in paragraph (3) a 
Contracting Party shall not modify the terms of any trade related 
investment measure which it notifies under paragraph (1) from 
those prevailing at the date of entry into force of this Treaty 
so as to increase the degree of inconsistency with the provisions 
of Article 5 of this Treaty. 
- 8 
(5) Notwithstanding the provisions of paragraph (4), a Contracting 
Party, in order not to disadvantage established enterprises which 
are subject to a trade related investment measure notified under 
paragraph (1), may apply during the phase-out period the same 
trade related investment measure to a new Investment where 
(a) the products of such Investment are I ike products to those 
of the established enterprises; and 
(b) such application is necessary to avoid distorting the 
conditions of competition between the new Investment and the 
established enterprises. 
Any trade related investment measure so applied to a new 
Investment shall be notified to the Secretariat. The terms of 
such a trade related investment measure shall be equivalent in 
their competitive effect to those applicable to the established 
enterprises, and it shall be terminated at the same time. 
(6) Where a state or Regional Economic Integration Organization 
accedes to this Treaty after the Treaty has entered into force: 
(a) the notification referred to in paragraphs (1) and (2) shall 
be made by the later of the applicable date in paragraph (1) 
or the date of deposit of the instrument of accession; and 
(b) the end of the phase-out period shall be the later of the 
applicable date in paragraph (3) or the date on which the 
Treaty enters into force for that state or Regional Economic 
Integration Organization. 
- 9 -
4. ANNEX N 
LIST OF CONTRACTING PARTIES REQUIRING AT LEAST 3 SEPARATE 
AREAS TO BE INVOLVED IN A TRANSIT 
(In accordance with Article 7(10)(a)) 
1. Canada and United States of America 
- 10 -
5. ANNEX VC 
LIST OF CONTRACTING PARTIES WHICH HAVE MADE VOLUNTARY 
BINDING COMMITMENTS IN RESPECT OF ARTICLE 10(3) 
(In accordance with Article 10(6)) 
- 11 -
6. ANNEX ID 
LIST OF CONTRACTING PARTIES NOT ALLOWING AN INVESTOR TO RESUBMIT 
THE SAME DISPUTE TO INTERNATIONAL ARBITRATION 
AT A LATER STAGE UNDER ARTICLE 26 
(In accordance with Article 26(3)(b)(i)) 
1. Australia 13. Ireland 
2. Azerbaijan 14. Italy 
3. Bulgaria 15. Japan 
4. Canada 16. Kazakhstan 
5. Croatia 17. Poland 
6. Cyprus 18. Portugal 
7. The Czech Republic 19. Romania 
8. Estonia 20. The Russian Federation 
9. European Communities 21. Slovenia 
10. Finland 22. Spain 
11. Greece 23. Sweden 
12. Hungary 24. United States of America 
- 12 -
7. ANNEX IA 
LIST OF CONTRACTING PARTIES NOT ALLOWING AN INVESTOR 
TO SUBMIT A DISPUTE CONCERNING THE LAST SENTENCE 
OF ARTICLE 10(1) TO INTERNATIONAL ARBITRATION 
(In accordance with Article 26(3)(c)) 
1. AustraIia 
2. Canada 
3. Hungary 
4. Norway 
- 13 -
8. ANNEX P 
SPECIAL SUB-NATIONAL DISPUTE PROCEDURE 
(In accordance with Article 27(3)(i)) 
PART 
1. Canada 
2. Austra I ia 
PART I I 
(1) Where, in making an award, the tribunal finds that a measure of a 
regional or local government or authority of a Contracting Party 
(hereinafter referred to as "the responsible Contracting Party") is 
not in conformity with a provision of this Treaty, the responsible 
Contracting Party shall take such reasonable measures as may be 
available to it to ensure observance of this Treaty in respect of 
the measure. 
(2) The responsible Contracting Party shall, within 30 days from the 
date the award is made, provide to the Secretariat written notice 
of its intentions as to ensuring observance of the Treaty in 
respect of the measure. The Secretariat shall present the 
notification to the Charter Conference at the earliest practicable 
opportunity, and no later than the meeting of the Charter 
Conference following receipt of the notice. If it is impracticable 
to ensure observance immediately, the responsible Contracting Party 
shall have a reasonable period of time in which to do so. The 
reasonable period of time shall be agreed by both parties to the 
dispute. In the event that such agreement is not reached, the 
responsible^Contracting Party shall propose a reasonable period for 
approval by the Charter Conference. 
- 14 -
(3) Where the responsible Contracting Party fails, within the 
reasonable period of time, to ensure observance in respebt of the 
measure, it shall at the request of the other Contracting Party 
party to the dispute (hereinafter referred to as "the injured 
Contracting Party") endeavour to agree with the injured Contracting 
Party on appropriate compensation as a mutually satisfactory 
resolution of the dispute. 
(4) If no satisfactory compensation has been agreed within 20 days of 
the request of the injured Contracting Party, the injured 
Contracting Party may with the authorization of the* Charter 
Conference suspend such of its obligations to the responsible 
Contracting Party under the Treaty as it considers equivalent to 
those, denied by the measure in question, until such time as the 
Contracting Parties have reached agreement on a resolution of their 
dispute or the non-conforming measure has been brought into 
conformity with the Treaty. 
(5) In considering what obligations to suspend, the injured Contracting 
Party shall apply the following principles and procedures: 
(a) The injured Contracting Party should first seek to suspend 
obligations with respect to the same Part of the Treaty as that 
in which the tribunal has found a violation. 
(b) If the injured Contracting Party considers that it is not 
practicable or effective to suspend obfigations with respect to 
the same Part of the Treaty, it may seek to suspend obligations 
in other Parts of the Treaty. If the injured Contracting Party 
decides to request authorization to suspend obligations under 
this sub-paragraph, it shall state the reasons therefor in its 
request to the Charter Conference for authorization. 
(6) On written request of the responsible Contracting Party, delivered 
to the injured Contracting Party and to the President of the 
tribunal that rendered the award, the tribunal shall determine 
whether the level of obligations suspended by the injured 
Contracting Party is excessive, and if so, to what extent. If the 
- 15 -
tribunal cannot be reconstituted, such determination shall be made 
by one or more arbitrators appointed by the Secretary-General. 
Determinations pursuant to this paragraph shall be completed within 
60 days of the request to the tribunal or the appointment by the 
Secretary-General. Obligations shall not be suspended pending the 
determination, which shall be final and binding. 
(7) In suspending any obligations to a responsible Contracting Party, 
an injured Contracting Party shall make every effort not to affect 
adversely the rights under the Treaty of any other Contracting 
Party. 
16 -
9. ANNEX G 
EXCEPTIONS AND RULES GOVERNING THE APPLICATION OF THE 
PROVISIONS OF THE GATT AND RELATED INSTRUMENTS 
(In accordance with Article 29(2)(a)) 
(1) The following provisions of the GATT and Related Instruments shall 
not be applicable under Article 29(2)(a): 
(a) General Agreement on Tariffs and Trade 
II Schedules of Concessions (and the Schedules to the 
General Agreement on Tariffs and Trade) 
IV Special Provisions relating to Cinematographic Films 
XV Exchange Arrangements 
XVlll Governmental Assistance to Economic Development 
XXI I Consul tat ion 
XXIII Nul I ification or Impairment 
XXV Joint Action by the Contracting Parties 
XXVI Acceptance. Entry into Force and Registration 
XXVII Withholding or Withdrawal of Concessions 
XXVIII Modification of Schedules 
XXVI I Ibis Tariff Negotiations 
XXIX The relation of this Agreement to the Havana Charter 
XXX Amendments 
XXXI Withdrawal 
XXXII Contracting Parties 
XXX I I I Accession 
XXXV Non-application of the Agreement between particular 
Contract ing Part ies 
XXXVI Principles and Objectives 
XXXVII Commitments 
XXXVI I I Joint Act ion 
Annex H Relating to Article I 
Annex I Notes and Supplementary Provisions (related to above 
GATT art icles) 
- 17 -
Safeguard Action for Development Purposes 
Understanding Regarding Notification, Consultation, Dispute 
Settlement and Surveillance. 
(b) Related Instruments 
(i) Agreement on Technical Barriers to Trade (Standards Code) 
Preamble (t irets 1,8,9) 
1.3 General provisions 
2.6.4 Preparation, adoption and application of 
technical regulations and standards by central 
government bodies 
10.6 Information about technical regulations, 
standards and certification systems 
11 Technical assistance to other Parties 
12 Special and differential treatment of developing 
countries 
13 The Committee on Technical Barriers to Trade 
14 Consultation and dispute settlement 
15. Final provisions (other than 15.5 and 15.13) 
Annex 2 Technical Expert Groups 
Annex 3 Panels 
(i i) Agreement on Government Procurement 
(iii) Agreement on Interpretation and Application of Articles 
VI, XVI and XXIII (Subsidies and Countervailing Measures) 
10 Export subsidies on certain primary products 
12 Consul tat ions 
13 Conciliation, dispute settlement and authorized 
countermeasures 
14 Developing countries 
16 Committee on Subsidies and Countervailing 
Measures 
17 Conci I iat ion 
18 Dispute settlement 
- 18 -
19.2 Acceptance and accession 
19.4 Entry into force 
19.5(a) National legislation 
19.6 Review 
19.7 Amendments 
19.8 Withdrawal 
19.9 Non-application of this Agreement 
particular signatories 
19.11 Secretariat 
19.12 Deposit 
19.13 Registration between 
(iv) Agreement on Implementation of Article VII -(Customs 
Valuation) 
i.2(b)(iv) Transaction value 
11.1 Determination of customs value 
14 Application of Annexes (second sentence) 
18 Institutions (Committee on Customs Valuation) 
19 Consultation 
20 Dispute settlement 
21 Special and differential treatment of 
developing countries 
22 Acceptance and accession 
24 Entry into force 
25.1 National legislation 
26 Review 
27 Amendments 
28 Withdrawal 
29 Secretariat' 
30 Depos i t 
31 Registration 
Annex II Technical Committee on Customs Valuation 
Annex III Ad Hoc Panels 
Protocol to the Agreement on Implementation of Article 
VJ I (except I.7 and I.8; with necessary conforming 
introductory language) 
- 19 -
(v) Agreement on Import Licensing Procedures 
1.4 General provisions (last sentence) 
2.2 Automatic import licensing (footnote 2) 
4 Institutions, consultation and dispute settlement 
5 Final provisions (except paragraph 2) 
(vi) Agreement on Implementation of Article VI (Antidumping 
Code ) 
13 Developing Countries 
14 Committee on Anti-Dumping Practices 
15 Consultation, Conciliation and Dispute Settlement 
16 Final Provisions (except paragraphs 1 and 3) 
(vii) Arrangement Regarding Bovine Meat 
(viii) International Dairy Arrangement 
(ix) Agreement on Trade in Civil Aircraft 
(x) Declaration on Trade Measures Taken for Balance-of-
Payments Purposes. 
(c) All other provisions in the GATT and Related Instruments which 
relate to: 
(i) governmental assistance to economic development and the 
treatment of developing countries, except for paragraphs 
(1) to (4) of the Decision of 28 November 1979 (L/4903) 
on Differential and more Favourable Treatment, 
Reciprocity and Fuller Participation, of Developing 
Countr ies-, 
(ii) the establishment or operation of specialist committees 
and other subsidiary institutions; 
(iii) signature, accession, entry into force, withdrawal, 
deposit and registration. 
- 20 -
(d) All agreements, arrangements, decisions, understandings or 
other joint action pursuant to the provisions listed in sub­
paragraphs (a) to (c) above. 
(2) Contracting Parties shall apply the provisions of the "Declaration 
on Trade Measures Taken for Balance-of-Payments Purposes" to 
measures taken by those Contracting Parties which are not parties 
to the GATT to the extent that that is practicable in the context 
of the other provisions of this Treaty. 
(3) With respect to notifications required by the provisions made 
applicable by Article 29(2)(a): 
(a) Contracting Parties which are not parties to the GATT or a 
Related Instrument shall make their notifications to the 
Secretariat. The Secretariat shall circulate copies of the 
notifications to all Contracting Parties. Notifications to the 
Secretariat shall be in one of the authentic languages of this 
Treaty. The accompanying documents may be solely in the 
language of the Contracting Party; 
(b) such requirements shall not apply to Contracting Parties to 
this Treaty which are also parties to the GATT and Related 
Instruments, which contain their own notification requirements. 
(4) Trade in nuclear materials may be governed by agreements referred 
to in the Declarations related to this paragraph contained in the 
Final Act of the European Energy Charter Conference. 
- 21 -
10. ANNEX TFU 
PROVISIONS FOR TRADE AGREEMENTS BETWEEN STATES WHICH WERE 
CONSTITUENT PARTS OF THE FORMER UNION OF SOVIET SOCIALIST REPUBLICS 
(In accordance with Article 29(2)(b)) 
(1) Any agreement described in Article 29(2)(b) shall be notified in 
writing to the Secretariat by or on behalf of all of the parties to 
such agreement which sign or accede to this Treaty: 
(a) in respect of an agreement in force as of a date three months 
after the date on which the first of such parties signs or 
deposits its instrument of accession to this Treaty, no later 
than six months after such date of signature or deposit; and 
(b) in respect of an agreement which enters into force on a date 
subsequent to the date referred to in sub-paragraph (a), 
sufficiently in advance of its entry into force for- other 
states or Regional Economic Integration Organizations which 
have signed or acceded to this Treaty (hereinafter referred to 
as the "Interested Parties") to have a reasonable opportunity 
to review the agreement and make representations concerning it 
to the parties thereto and to the Charter Conference prior to 
such entry into force. 
(2) The notification shall include: 
(a) copies of the original texts of the agreement in all languages 
in which it has been signed; 
(b) a description, by reference to the items included in Annex EM, 
of the specific Energy Materials and Products to which it 
appI ies; 
- 22 -
(c) an explanation, separately for each relevant provision of the 
GATT and Related Instruments made applicable by Article 
29(2)(a), of the circumstances which make it impossible or 
impracticable for the parties to the agreement to conform fully 
with that provision; 
(d) the specific measures to be adopted by each party to the 
agreement to address the circumstances referred to in sub­
paragraph (c); and 
(e) a description of the parties' programmes for achieving a 
progressive reduction and ultimate elimination of the 
agreement's non-conforming provisions. 
(3) Parties to an agreement notified in accordance with paragraph (1) 
shall afford to the Interested Parties a reasonable opportunity to 
consult with them with respect to such agreement, and shall accord 
consideration to their representations. Upon the request of any of 
the Interested Parties, the agreement shall be considered by the 
Charter Conference, which may adopt recommendations with respect 
thereto. 
(4) The Charter Conference shall periodically review the implementation 
of agreements notified pursuant to paragraph (1) and the progress 
having been made towards the elimination of provisions thereof that 
do not conform with provisions of the GATT and Related Instruments 
made applicable by Article 29(2)(a). Upon the request of any of the 
Interested Parties, the Charter Conference may adopt 
recommendations with respect to such an agreement. 
(5) An agreement described in Article 29(2)(b) may in case of 
exceptional urgency be allowed to enter into force without the 
notification and consultation provided for in paragraphs (1Mb) to 
(3), provided that such notification takes place and the 
opportunity for such consultation is afforded promptly. In such a 
case the parties to the agreement shall nevertheless notify its 
text in accordance with paragraph (2)(a) promptly upon its entry 
into force. 
- 23 -
(6) Contracting Parties which are or become parties to an agreement 
described in Article 29(2)(b) undertake to limit the non­
conformities thereof with the provisions of the GATT and Related 
Instruments made applicable by Article 29(2)(a) to those necessary 
to address the particular circumstances and to implement such an 
agreement so as least to deviate from those provisions. They shall 
make every effort to take remedial action in light of 
representations from the Interested Parties and of any 
recommendations of the Charter Conference. 
- 24 -
11. ANNEX D 
INTERIM PROVISIONS FOR TRADE DISPUTE SETTLEMENT 
(In accordance with Article 29(7)) 
(1) (a) In their relations with one another, Contracting Parties shall 
make every effort through co-operation and consultations to 
arrive at a mutually satisfactory resolution of any dispute 
about existing measures that might materially affect compliance 
with the provisions applicable to trade under Article 5-or 29. 
(b) A Contracting Party may make a written request to any other 
Contracting Party for consultations regarding any existing 
measure of the other Contracting Party that it considers might 
affect materially compliance with provisions applicable to 
trade under Article 5 or 29. A Contracting Party which requests 
consultations shall to the fullest extent possible indicate the 
measure complained of and specify the provisions of Article 5 
• or of Article 29 and of the GATT and Related Instruments that 
it considers relevant. Requests to consult pursuant to this 
paragraph shall be notified to the Secretariat, which shall 
periodically inform the Contracting Parties of pending 
consultations that have been notified. 
(c) A Contracting Party shall treat any confidential or proprietary 
information identified as such and contained in or received in 
response to a written request, or received in the course of 
consultations, in the same manner in which it is treated by the 
Contracting Party providing the information. 
(d) In seeking to resolve matters considered by a Contracting Party 
to affect compliance with provisions applicable to trade under 
Article 5 or 29 as between itself and another Contracting 
Party, the Contracting Parties participating in consultations 
or other dispute settlement shall make every effort to avoid a 
resolution that adversely affects the trade of any other 
Contract ing Party. 
- 25 -
(2) (a) If, within 60 days from the receipt of the request for 
consultation referred to in paragraph (1)(b), the Contracting 
Parties have not resolved their dispute or agreed to resolve 
it by conciliation, mediation, arbitration or other method, 
either Contracting Party may deliver to the Secretariat a 
written request for the establishment of a panel in accordance 
with paragraphs (2)(b) to (f). In its request the requesting 
Contracting Party shall state the substance of the dispute and 
indicate which provisions of Article 5 or of A tide 29 and of 
the GATT and Related Instruments are considered relevant. The 
Secretariat shall promptly deliver copies of the request to all 
Contracting Parties. 
(b) The interests of other Contracting Parties shall be taken into 
account during the resolution of a dispute. Any other 
Contracting Party having a substantial interest (as defined in 
the GATT and Related Instruments) in a matter shall have the 
right to be heard by the panel and to make written submissions 
to it, provided that both the disputing Contracting Parties and 
the Secretariat have received written notice of its interest no 
later than the date of establishment of the panel, as 
determined in accordance with paragraph (2)(c). 
(c) A panel shall be deemed to be established 45 days after the 
receipt of the written request of a Contracting Party by the 
Secretariat pursuant to paragraph (2)(a). 
(d) A panel shall be composed of three members who shall be chosen 
by the Secretary-General from the roster described in paragraph 
(7). Except where the disputing Contracting Parties agree 
otherwise, the members of a panel shall not be citizens of 
Contracting Parties which either are party to the dispute or 
have notified their interest in accordance with paragraph 
(2)(b), or citizens of states members of a Regional Economic 
Integration Organization which either is party to the dispute 
or has notified its interest in accordance with 
paragraph (2)(b). • 
26 -
(e) The disputing Contracting Parties shall respond within ten 
working days to the nominations of panel members and shall not 
oppose nominations except for compelling reasons. 
(f) Panel members shall serve in their individual capacities and 
shall neither seek nor take instruction from any government or 
other body. Each Contracting Party undertakes to respect these 
principles and not to seek to influence panel members in the 
performance of their tasks. Panel members shall be selected 
with a view to ensuring their independence, and that a 
sufficient diversity of backgrounds and breadth of experience 
are reflected in a panel. 
(g) The Secretariat shall promptly notify all Contracting Parties 
that a panel has been constituted. 
(3) (a) The Charter Conference shall adopt rules of procedure for panel 
proceedings consistent with this Annex. Rules of procedure 
shall be as close as possible to those of the GATT and 
Related Instruments. A panel shall also have the right to adopt 
additional rules of procedure not inconsistent with the rules 
of procedure adopted by the Charter Conference or with this 
Annex. In a proceeding before a panel each disputing 
Contracting Party and any other Contracting Party which has 
notified its interest in accordance with paragraph (2)(b), 
shall have the right to at least one hearing before the panel 
and to provide a written submission. Disputing Contracting 
Parties shall also have the right to provide a written 
rebuttal. A Panel may grant a request by any other Contracting 
Party which has notified its interest in accordance with 
paragraph (2)(b) for access to any written submission made to 
the panel, with the consent of the Contracting Party which has 
made i t. 
The proceedings of a panel shall be confidential. A panel 
shall make an objective assessment of the matters before it, 
including the facts of the dispute and the compliance of 
measures with the provisions applicable to trade under 
Article 5 or 29. In exercising its functions, a panel shall 
- 27 
consult with the disputing Contracting Parties and give them 
adequate opportunity to arrive at a mutually satisfactory 
solution. Unless otherwise agreed by the disputing Contracting 
Parties, a panel shall base its decision on the arguments and 
submissions of the disputing Contracting Parties. Panels shall 
be guided by the interpretations given to the GATT and Related 
Instruments within the framework of the GATT, and shall not 
question the compatibility with Article 5 or 29 of this Treaty 
of practices applied by any Contracting Party which is a party 
to the GATT to other parties to the GATT to which it applies 
the GATT and which have not been taken by those other parties 
to dispute resolution under the GATT. 
Unless otherwise agreed by the disputing Contracting Parties, 
all procedures involving a panel, including the issuance of its 
final report, should be completed within 180 days of the date 
of establishment of the panel; however, a failure to complete 
all procedures within this period shall not affect the validity 
of a final report. 
(b) A panel shall determine its jurisdiction; such determination 
shall be final and binding. Any objection by a disputing 
Contracting Party that a dispute is not within the jurisdiction 
of the panel shall be considered by the panel, which shall 
decide whether to deal with the objection as a preliminary 
question or to join< it to the merits of the dispute. 
(c) In the event of two or more requests for establishment of a 
panel in relation to disputes that are substantively similar, 
the Secretary-General may with the consent of all *the disputing 
Contracting Parties appoint a single panel. 
(4) (a) After having considered rebuttal arguments, a panel shall 
submit to the disputing Contracting Parties the descriptive 
sections of its draft written report, including a statement of 
the facts and a summary of the arguments made by the disputing 
Contracting Parties. The disputing Contracting Parties shall be 
afforded an opportunity to submit written comments on the 
descriptive sections within a period set by the panel. 
- 28 -
Following the date set for receipt of comments from the 
Contracting Parties, the panel shall issue to the disputing 
Contracting Parties an interim written report, including both 
the descriptive sections and the panel's proposed findings and 
conclusions. Within a period set by the panel a disputing 
Contracting Party may submit to the panel a written request 
that the panel review specific aspects of the interim report 
before issuing a final report. Before issuing a final report 
the panel may, in its discretion, meet with the disputing 
Contracting Parties to consider the issues raised in such a 
request. 
The final report shall include descriptive sections (including 
a statement of the facts and a summary of the arguments made by 
the disputing Contracting Parties), the panel's findings and 
conclusions, and a discussion of arguments made on specific 
aspects of the interim report at the stage of its review. The 
final report shall deal with every substantial issue raised 
before the panel and necessary to the resolution of the 
dispute and shall state the reasons for the panel's 
conclusions. 
A panel shall issue its final report by providing it promptly 
to the Secretariat and to the disputing Contracting Parties. 
The Secretariat shall at the earliest practicable opportunity 
distribute the final report, together with any written views 
that a disputing Contracting Party desires to have appended, 
to all Contracting Parties. 
(b) Where a panel concludes that a measure introduced or maintained 
by a Contracting Party does not comply with a provision of 
Article 5 or 29 or with a provision of the GATT and Related 
Instruments that applies under Article 29, the panel may 
recommend in its final report that the Contracting Party alter 
or abandon the measure or conduct so as to be in compliance 
with that provision. 
- 29 
(c) Panel reports shall be adopted by the Charter Conference. In 
order to provide sufficient time for the Charter Conference to 
consider panel reports, a report shall not be adopted by the 
Charter Conference until at least 30 days after it has been 
provided to all Contracting Parties by the Secretariat. 
Contracting Parties having objections to a panel report shall 
give written reasons for their objections to the Secretariat at 
least 10 days prior to the date on which the report is to be 
considered for adoption by the Charter Conference, and the 
Secretariat shall promptly provide them to all Contracting 
Parties. The disputing Contracting Parties and Contracting 
Parties which notified their interest in accordance with 
paragraph (2)(b) shall have the right to participate fully in 
the cons iderat ion of the panel report on that dispute by the 
Charter Conference, and their views shall be fully recorded. 
(d) In order to ensure effective resolution of disputes to the 
benefit of all Contracting Parties, prompt compliance with 
rulings and recommendations, of a final panel report that has 
been adopted by the Charter Conference is essential. A 
Contracting Party which is subject to a ruling or 
recommendation of a final panel report that has been adopted by 
the Charter Conference shall inform the Charter Conference of 
its intentions regarding compliance with such ruling or 
recommendation. In the event that immediate compliance is 
impracticable, the Contracting Party concerned shall explain 
its reasons for non-compliance to the Charter Conference and, 
in light of this explanation, sha I I have a reasonable period of 
time to effect compliance. The aim of dispute resolution is the 
modification or removal of inconsistent measures. 
(5) (a) "Where a Contracting Party has failed within a reasonable period 
of time to comply with a ruling or recommendation of a final 
panel report that has been adopted by the Charter Conference, a 
Contracting Party to the dispute injured by such non-compliance 
may deliver to the non-complying Contracting Party a written 
request that the non-complying Contracting Party enter into 
negotiations with a view to agreeing upon mutually acceptable 
compensation. If so requested the non-complying Contracting 
Party shall promptly enter into such negotiations. 
- 30 -
(b) If the non-complying Contracting Party refuses to negotiate, or 
if the Contracting Parties have not reached agreement within 
30 days after delivery of the request for negotiations, the 
injured Contracting Party may make a written request for 
authorization of the Charter Conference to suspend obligations 
owed by it to the non-complying Contracting Party under Article 
5 or 29. 
(c) The Charter Conference may authorize the injured Contracting 
Party to suspend such of its obligations to the non-complying 
Contracting Party, under provisions of Article 5 or 29 or under 
provisions of the GATT and Related Instruments that apply under 
Article 29, as the injured Contracting Party considers 
equivalent in the circumstances. 
(d) The suspension of obligations shall be temporary and shall be 
applied only until such time as the measure found to be 
inconsistent with Article 5 or 29 has been removed, or until a 
mutually satisfactory solution is reached. 
(6) (a) Before suspending such obligations the injured Contracting 
Party shall inform the non-complying Contracting Party of the 
nature and level of its proposed suspension. If the non-
complying Contracting Party delivers to the Secretary-General a 
written objection to the level of suspension of obligations 
proposed by the injured Contracting Party, the objection shall 
be referred to arbitration as provided below. The proposed 
suspension of obligations shall be stayed until the arbitration 
has been completed and the determination of the arbitral panel 
has become final and binding in accordance with paragraph 
(6)(e). 
(b) The Secretary-General shall establish an arbitral panel in 
accordance with paragraphs (2)(d) to (f), which if practicable 
shall be the same panel which made the ruling or recommendation 
referred to in paragraph (4)(d), to examine the level of 
31 -
obligations that the injured Contracting Party proposes to 
suspend. Unless the Charter Conference decides otherwise the 
rules of procedure for panel proceedings shall be adopted in 
accordance with paragraph (3)(a). 
(c) The arbitral panel shall determine whether the level of 
obligations proposed to be suspended by the injured Contracting 
Party is excessive in relation to the injury it experienced, 
and if so, to what extent. It shall not revie-. the nature of 
the obligations suspended, except insofar as this is 
inseparable from the determination of the level of suspended 
ob Iigat ions. 
(d) The arbitral panel shall deliver its written determination to 
the injured and the non-complying Contracting Parties and to 
the Secretariat within 60 days of the establishment of the 
panel or within such other period as may be agreed by the 
injured and the non-complying Contracting Parties. The 
Secretariat shall present the determination to the Charter 
Conference at the earliest practicable opportunity, and no 
later than the meeting of the Charter Conference following 
receipt of the determination. 
(e) The determination of the arbitral panel shall become final and 
binding 30 days after the date of its presentation to the 
Charter Conference, and any level of suspension of benefits 
allowed thereby may thereupon be put into effect by the injured 
Contracting Party in such manner as that Contracting Party 
considers equivalent in the circumstances, unless prior to the 
expiration of the 30 days period the Charter Conference decides 
otherwise. 
(f) In suspending any obligations to a non-complying Contracting 
Party, an injured Contracting Party shall make every effort not 
to affect adversely the trade of any other Contracting Party. 
(7) Each Contracting Party, may designate two individuals who shall, in 
the case of Contracting Parties which are also party to the,GATT, 
if they are willing and able to serve as panel-lists under this 
- 32 -
Annex, be panellists currently nominated for the purpose of GATT 
dispute panels. The Secretary-General may also designate, with the 
approval of the Charter Conference, not more than ten individuals, 
who are willing and able to serve as panellists for purposes of 
dispute resolution in accordance with paragraphs (2) to (4). The 
Charter Conference may in addition decide to designate for the same 
purposes up to 20 individuals, who serve on dispute settlement 
rosters of other international bodies, who are willing and able to 
serve as panellists. The names of all of the individuals so 
designated shall constitute the dispute settlement roster. 
Individuals shall be designated strictly on the basis of 
objectivity, reliability and sound judgement and, to the greatest 
extent possible, shall have expertise in international trade and 
energy matters, in particular as relates to provisions applicable 
under Article 29. In fulfilling any function under this Annex, 
designees shall not be affiliated with or take instructions from 
any Contracting Party. Designees shall serve for renewable terms of 
five years and until their successors have been ' designated. A 
designee whose term expires shall continue to fulfil any function 
for which that individual has been chosen under this Annex. In the 
case of death, resignation or incapacity of a designee, the 
Contracting Party or the Secretary-General, whichever designated 
said designee, shall have the right to designate another individual 
to serve for the remainder of that designee's term, the designation 
by the Secretary-General being subject to approval of the Charter 
Conference. 
(8) Notwithstanding the provisions contained in this Annex, Contracting 
Parties are encouraged to consult throughout the dispute resolution 
proceeding with a view to settling their dispute. 
(9) The Charter Conference may appoint or designate other bodies or 
fora to perform any of the functions delegated in this Annex to 
the Secretariat and the Secretary-General. 
- 33 -
12. ANNEX B 
FORMULA FOR ALLOCATING CHARTER COSTS 
(In accordance with Article 37(3)) 
(1) Contributions payable by Contracting Parties shall be determined by 
the Secretariat annually on the basis of their percentage 
contributions required under the latest available United Nations 
Regular Budget Scale of Assessment (supplemented by information on 
theoretical contributions for any Contracting Parties which are not 
UN members). 
(2) The contributions shall be adjusted as necessary to ensure that the 
total of all Contracting Parties' contributions is 100%. 
- 34 -
13. ANNEX PA 
LIST OF SIGNATORIES WHICH DO NOT ACCEPT THE PROVISIONAL 
APPLICATION OBLIGATION OF ARTICLE 45(3)(b) 
(In accordance with Article 45(3)(c)) 
1. The Czech Republic 
2. Germany 
3. Hungary 
4. Lithuania 
5. Poland 
- 35 -
14. ANNEX T 
LIST OF CONTRACTING PARTIES* TRANSITIONAL MEASURES 
(In accordance with Article 32(1)) 
Provision P&ge Provision Pflfle 
Article 6(2) 
Article 6(5) 
Article 7(4) 
Article 9(1) 36 Article 10(7) 55 
43 Article 14(1)(d) 56 
49 Article 20(3) 58 
52 Article 22(3) 63 
List of Contracting Parties entitled to transitional arrangements 
Albania 
Armenia 
Azerbaijan 
Belarus 
Bulgar ia 
Croat ia 
The Czech Republic 
Estonia 
Georgia 
Hungary 
Kazakhstan 
Kyrgyzstan Latvia 
L ithuania 
Moldova 
Poland 
Romania . 
Russia 
Slovak ia 
Slovenia 
Tadj ik istan 
Turkmenistan 
Ukraine 
Uzbek istàn 
- 36 -
ARTICLE 6(2) 
"Each Contracting Party shall ensure that within its jurisdiction it 
has and enforces such laws as are necessary and appropriate to address 
unilateral and concerted anti-competitive conduct in Economic Activity 
in the Energy Sector." 
COUNTRY : ALBANIA 
SECTOR 
AI I energy sectors. 
LEVEL OF GOVERNMENT 
Nat ionaI. 
DESCRIPTION 
There is no law on protection of competition in Albania. The law No 
7746 of 28 July 1993 on Hydrocarbons and the law No 7796 of 17 February 
1994 on Minerals do not include such provisions. There is no law on 
electricity which is in the stage of preparation. This law is planned 
to be submitted to the Parliament by the end of 1996. 
In these laws Albania intends to include provisions on anti-competitive 
conduct. 
PHASE-OUT 
1 January 1998. 
COUNTRY : ARMENIA 
SECTOR 
AI I energy sectors. 
LEVEL OF GOVERNMENT 
Nat ionaI. 
DESCRIPTION 
At present a state monopoly exists in Armenia in most energy sectors. 
There is no law on protection of competition, thus the rules of 
competition are not yet being implemented. There are no laws on energy. 
The draft laws on energy are planned to be submitted to the Parliament 
in 1994. The laws are envisaged to include provisions on anti­
competitive behaviour, which would be harmonized with the EC 
legislation on competition. 
PHASE-OUT 
31 December 1997. 
- 37 -
COUNTRY : AZERBAIJAN 
SECTOR 
AI I energy sectors. 
LEVEL OF GOVERNMENT 
Nat ionaI. 
DESCRIPTION 
The anti-monopoly legislation is at the stage of elaboration 
PHASE OUT 
1 January 2000. 
COUNTRY : BELARUS 
SECTOR 
AI I energy sectors. 
LEVEL OF GOVERNMENT 
Nat ionaI. 
DESCRIPTION 
Anti-monopoly legislation is at the stage of elaboration. 
PHASE-OUT 
1 January 2000. 
- 38 -
COUNTRY : GEORGIA 
SECTOR 
AI I energy sectors. 
LEVEL OF GOVERNMENT 
Nat iona I . 
DESCRIPTION 
Laws on demonopolization are at present at the stage of elaboration in 
Georgia and that is why the State has so far the monopoly for 
practically all energy sources and energy resources, which restricts 
the possibility of competition in the energy and fuel complex. 
PHASE-OUT 
1 January 1999. 
COUNTRY : KAZAKHSTAN 
SECTOR 
AI I energy sectors. 
LEVEL OF GOVERNMENT 
Nat ionaI. 
DESCRIPTION 
The law on Development of Competition and Restriction of Monopolistic 
Activities (No 656 of 11 June 1991) has been adopted, but is of a 
general nature. It is necessary to develop the legislation further, in 
particular by means of adopting relevant amendments or adopting a new 
law. 
PHASE-OUT 
1 January 1998. 
- 39 -
COUNTRY : KYRGYZSTAN 
SECTOR 
AI I energy sectors. 
LEVEL OF GOVERNMENT 
Nat ionaI 
DESCRIPTION 
The law on Anti-monopoly Policies has already been adopted. The 
transitional period is needed to adapt provisions of this law to the 
energy sector which is now strictly regulated by the state. 
PHASE-OUT 
1 July 2001. 
COUNTRY : MOLDOVA 
SECTOR 
AI I energy sectors. 
LEVEL OF GOVERNMENT 
Nat ionaI. 
DESCRIPTION 
The law on Restriction of Monopolistic Activities and Development of 
Competition of 29 January 1992 provides an organizational and legal 
basis for the development of competition measures to prevent, limit and 
restrict monopolistic activities; it is oriented towards implementing 
market economy conditions. This law, however, does not provide for 
concrete measures of anti-competitive conduct in the energy sector, nor 
does it cover completely the requirements of Article 6. 
In 1995 drafts of a law on Competition and a State Programme of 
Demonopol ization of the Economy will be submitted to the Parliament. 
The draft law on Energy which will be also submitted to the Parliament 
in 1995 will cover issues on demonopol ization and development of 
competition in the energy sector. 
PHASE-OUT 
1 January 1998. 
- 40 -
COUNTRY : ROMANIA 
SECTOR 
AI I energy sectors. 
LEVEL OF GOVERNMENT 
Nat ionaI. 
DESCRIPTION 
The rules of competition are not yet implemented in Romania. The draft 
law on Protection of Competition has been submitted to the Parliament 
and is scheduled to be adopted during 1994. 
The draft contains provisions with respect to anti-competitive 
behaviour, harmonized with the EC's law on Competition. 
PHASE OUT 
31 December 1996. 
COUNTRY : RUSSIA 
SECTOR 
AI I energy sectors. 
LEVEL OF GOVERNMENT 
The Federat ion. 
DESCRIPTION 
A comprehensive framework of anti-monopoly legislation has been created 
in the Russian Federation but other legal and organizational measures 
to prevent, limit or suppress monopolistic activities and unfair 
competition will have to be adopted and in particular in the energy 
sector. 
PHASE-OUT 
1 July 2001. 
- 41 -
COUNTRY : SLOVENIA 
SECTOR 
AI I energy sectors. 
LEVEL OF GOVERNMENT 
Nat iona I . 
DESCRIPTION 
Law on Protection of Competition adopted in 1993 and published in 
Official Journal No 18/93 treats anti-competitive conduct generally. 
The existing law also provides for conditions for the establishment of 
competition authorities. At present the main competition authority is 
the Office of Protection of Competition in the Ministry of Economic 
Relations and Development. With regard to importance of energy sector a 
separate law in this respect is foreseen and thus more time for full 
compliance is needed. 
PHASE-OUT 
1 January 1998. 
COUNTRY : TADJIKISTAN 
SECTOR 
AI I energy sectors. 
LEVEL OF GOVERNMENT 
Nat ionaI. 
DESCRIPTION 
In 1993 Tadjikistan passed the law on Demonopolization and Competition. 
However, due to the difficult economic situation in Tadjikistan, the 
jurisdiction of the law has been temporarily suspended. 
PHASE-OUT 
31 December 1997. 
- 42 -
COUNTRY : TURKMENISTAN 
SECTOR 
AI I energy sectors. 
LEVEL OF GOVERNMENT 
Nat ionaI. 
DESCRIPTION 
Under the Ruling of the President of Turkmenistan No 1532 of 21.October 
1993 the Committee on Restricting Monopolistic Activities has been 
etablished and is acting now, the function of which is to protect 
enterprises and other entities from monopoly conduct and practices and 
to promote the formation of market principles on the basis of the 
development of competition and entrepreneurship. 
Further development of legislation and regulations is needed which 
would regulate anti-monopoly conduct of enterprises in the Economic 
Activity in the Energy Sector. 
PHASE-OUT 
1 July 2001. 
COUNTRY : UZBEKISTAN 
SECTOR 
AI I energy sectors. 
LEVEL OF GOVERNMENT 
Nat ionaI. 
DESCRIPTION 
The law on Restricting Monopoly Activities has been adopted in 
Uzbekistan and has been in force since July 1992. However, the law (as 
is specified in article 1, paragraph 3) does not extend to the 
activities of enterprises in the energy sector. 
PHASE-OUT 
1 July 2001. 
- 43 -
ARTICLE 6(5) 
"If a Contracting Party considers that any specified anti-competitive 
conduct carried out within the Area of another Contracting Party is 
adversely affecting an important interest relevant to the purposes 
identified in this Article,the Contracting Party may notify the other 
Contracting Party and may request that its competition authorities 
initiate appropriate enforcement action. The notifying Contracting 
Party shall include in such notification sufficient information to 
permit the notified Contracting Party to identify the anti-competitive 
conduct that is the subject of the notification and shall include an 
offer of such further information and co-operation as that Contracting 
Party is able to provide. The notified Contracting Party or, as the 
case may be, the relevant competition authorities may consult with the 
competition authorities of the notifying Contracting Party and shall 
accord full consideration to the request of the notifying Contracting 
Party in deciding whether or not to initiate enforcement action with 
respect to the alleged anti-competitive conduct identified in the 
notification. The notified Contracting Party shall inform the notifying 
Contracting Party of its decision or the decision of the relevant 
competition authorities and may if it wishes inform the notifying 
Contracting Party of the grounds for the decision. If enforcement 
action is initiated, the notified Contracting Party shall advise the 
notifying Contracting Party of its outcome and, to the extent possible, 
of any significant interim development." 
COUNTRY : ALBANIA 
SECTOR 
AI I energy sectors. 
LEVEL OF GOVERNMENT 
Nat ionaI. 
DESCRIPTION 
In Albania there are no established institutions to enforce the 
competition rules. Such institutions will be provided for in the law on 
the Protection of Competition which is planned to be finalized in 1996. 
PHASE-OUT 
1 January 1999. 
44 -
COUNTRY : ARMENIA 
SECTOR 
AI I energy sectors. 
LEVEL OF GOVERNMENT 
Nat ionaI. 
DESCRIPTION 
Institutions to enforce the provisions of this paragraph have not been 
established in Armenia. 
The laws on Energy and Protection of Competition are planned to include 
provisions to establish such institutions. 
PHASE-OUT 
31 December 1997. 
COUNTRY : AZERBAIJAN 
SECTOR 
AI I energy sectors. 
LEVEL OF GOVERNMENT 
Nat ionaI. 
DESCRIPTION 
Anti-monopoly authorities shall be established after the adoption of 
anti-monopoly legislation. 
PHASE-OUT 
1 January 2000. 
- 45 -
COUNTRY : BELARUS 
SECTOR 
AI I energy sectors. 
LEVEL OF GOVERNMENT 
Nat ionaI. 
DESCRIPTION 
Anti-monopoly authorities shall be established after the adoption of 
anti-monopoly legislation. 
PHASE-OUT 
1 January 2000. 
COUNTRY : GEORGIA 
SECTOR 
All energy sectors. 
LEVEL OF GOVERNMENT 
Nat ionaI. 
DESCRIPTION 
Laws on demonopol izat ion are at present at the stage of elaboration =i-n 
Georgia and that is why there are no competition authorities 
established yet. 
PHASE-OUT 
1 January 1999. 
- 46 -
COUNTRY : KAZAKHSTAN 
SECTOR 
AI I energy sectors. 
LEVEL OF GOVERNMENT 
National. 
DESCRIPTION 
An Anti-monopoly Committee has been established in Kazakhstan, but its 
activity needs improvement, both from legislative and organizational 
points of view, in order to elaborate an effective mechanism handling 
with the complaints on anti-competitive conduct. 
PHASE-OUT 
1 January 1998. 
COUNTRY : KYRGYZSTAN 
SECTOR 
AI I energy sectors. 
LEVEL OF GOVERNMENT 
Nat ionaI. 
DESCRIPTION 
There is no mechanism in kyrgyzstan to control the anti-competitive 
conduct and the relevant legislation. It is necessary to establish 
relevant anti-monopoly authorities. 
PHASE-OUT 
1 July 2001. 
- 47 -
COUNTRY : MOLDOVA 
SECTOR 
AI I energy sectors. 
LEVEL OF GOVERNMENT 
National. 
DESCRIPTION 
The Ministry of Economy is responsible for the control of competitive 
conduct in Moldova. Relevant amendments have been made to the law on 
Breach of Administrative Rules, which envisage some penalties for 
violating rules of competition by monopoly enterprises. 
The draft law on Competition which is now at the stage of elaboration 
will have provisions on the enforcement of competition rules. 
PHASE-OUT 
1 January 1998. 
COUNTRY : ROMANIA 
SECTOR 
AI I energy sectors. 
LEVEL OF GOVERNMENT 
Nat ionaI. 
DESCRIPTION 
Institutions to enforce the provisions of this paragraph have not been 
established in Romania. 
The Institutions charged with the enforcement of competition rules are 
provided for in the draft law on Protection of Competition which is 
scheduled to be adopted during 1994. 
The draft also provides a period of nine months for enforcement, 
starting with the date of its publication. 
- 48 -
According to the Europe Agreement establishing an association between 
Romania and the European Communities, Romania was granted a period of 
five years to implement competition rules. 
PHASE OUT 
1 January 1998. 
COUNTRY : TADJIKISTAN 
SECTOR 
All energy sectors. 
LEVEL OF GOVERNMENT 
Nat ionaI. 
DESCRIPTION 
Tadjikistan has adopted laws on Demonopolization and Competition, but 
institutions to enforce competition rules are in the stage of 
development. 
PHASE-OUT 
31 December 1997. 
COUNTRY : UZBEKISTAN 
SECTOR 
AI I energy sectors. 
LEVEL OF GOVERNMENT 
Nat ionaI. 
DESCRIPTION 
The law on Restricting Monopoly Activities has been adopted in 
Uzbekistan and has been in force since July 1992. However, the law (as 
is specified in article 1, paragraph 3) does not extend to the 
activities of the enterprises in the energy sector. 
PHASE-OUT 
1 July 2001. 
- 49 -
ARTICLE 7(4) 
"In the event that Transit of Energy Materials and Products cannot be 
achieved on commercial terms by means of Energy Transport Facilities 
the Contracting Parties shall not place obstacles in the way of new 
capacity being established, except as may be otherwise provided in 
applicable leg isIation which is consistent with paragraph (1)." 
COUNTRY : AZERBAIJAN 
SECTOR 
All energy sectors. 
LEVEL OF GOVERNMENT 
Nat ionaI. 
DESCRIPTION 
It is necessary to adopt a set of laws on energy, including licensing 
procedures regulating transit. During a transition period it is 
envisaged to build and modernize power transmission lines, as well as 
generating capacities with the aim of bringing their technical level to 
the world requirements and adjusting to conditions of a market economy. 
PHASE OUT 
31 December 1999. 
COUNTRY : BELARUS 
SECTOR 
AI I energy sectors. 
LEVEL OF GOVERNMENT 
Nat ionaI. 
DESCRIPTION 
Laws on energy, land and other subjects are being worked out at 
present, and until their final adoption, uncertainty remains as to the 
conditions for establishing new transport capacities for energy 
carriers in the territory of Belarus. 
PHASE-OUT 
31 December 1998. 
- 50 -
COUNTRY : BULGARIA 
SECTOR 
AI I energy sectors. 
LEVEL OF GOVERNMENT 
Nat ionaI. 
DESCRIPTION 
Bulgaria has no laws regulating Transit of Energy Materials and 
Products. An overall restructuring is ongoing in the energy sector, 
including development of institutional framework, legislation and 
régulât ion. 
PHASE-OUT 
The transitional period of 7 years is necessary to bring the 
legislation concerning the Transit of Energy Materials and Products in 
full compliance with this provision. 
1 July 2001. 
COUNTRY : GEORGIA' 
SECTOR 
All energy sectors. 
LEVEL OF GOVERNMENT 
Nat ionaI. 
DESCRIPTION 
It is necessary to prepare a set of laws on the matter. At present 
there are substantially different conditions for the transport and 
transit of various energy sources in Georgia (electric power, natural 
gas, oil products, coal). 
PHASE-OUT 
1 January 1999. 
- 51 -
COUNTRY : HUNGARY 
SECTOR 
Electricity industry. 
LEVEL OF GOVERNMENT 
Nat ionaI. 
DESCRIPTION 
According to the current legislation establishment and operation of 
high-voltage transmission lines is a state monopoly. 
The creation of the new legal and regulatory framework for 
establishment, operation and ownership of high-voltage transmission 
lines is under preparation. 
The Ministry of Industry and Trade has already taken the initiative to 
put forward a new Act on Electricity Power, that will have its impact 
also on the Civil Code and on the Act on Concession. Compliance can be 
achieved after entering in force of the new law on Electricity and 
related regulatory decrees. 
PHASE-OUT 
31 December 1996'. 
COUNTRY : POLAND 
SECTOR 
AI I energy sectors. 
LEVEL OF GOVERNMENT 
Nat ionaI. 
DESCRIPTION 
PoJish law on Energy, being in the final stage of co-ordination, 
stipulates for creating new legal regulations similar to those applied 
by free market countries (licenses to generate, transmit, distribute 
and trade in energy carriers). Until it is adopted by the Parliament a 
temporary suspension of obligations under this paragraph is required. 
PHASE-OUT 
31 December 1995. 
- 52 
ARTICLE 9(1) 
"The Contracting Parties acknowledge the importance of open capital 
markets in encouraging the flow of capital to finance trade in Energy 
Materials and Products and for the making of and assisting with regard 
to Investments in Economic Activity in the Energy Sector in the Areas 
of other Contracting Parties, particularly those with economies in 
transition. Each Contracting Party shall accordingly endeavour to 
promote conditions for access to its capital market by companies and 
nationals of other Contracting Parties, for the purpose of financing 
trade in Energy Materials and Products and for the purpose of 
Investment in Economic Activity in the Energy Sector in the Areas of 
those other Contracting Parties, on a basis no less favourable than 
that which it accords in like circumstances to its own companies and 
nationals or companies and nationals of any other Contracting Party or 
any third state, whichever is the most favourable." 
COUNTRY : AZERBAIJAN 
SECTOR 
AI I energy sectors. 
LEVEL OF GOVERNMENT 
Nat ionaI. 
DESCRIPTION 
Relevant legislation is at the stage of elaboration 
PHASE-OUT 
1 January 2000. 
- 53 -
COUNTRY : BELARUS 
SECTOR 
AI I energy sectors. 
LEVEL OF GOVERNMENT 
Nat ionaI. 
DESCRIPTION 
Relevant legislation is at the stage of elaboration. 
PHASE-OUT 
1 January 2000. 
COUNTRY : GEORGIA 
SECTOR 
AI I energy sectors. 
LEVEL OF GOVERNMENT 
Nat ionaI. 
DESCRIPTION 
Relevant legislation is at the stage of preparation 
PHASE-OUT 
1 January 1997. 
- 54 -
COUNTRY : KAZAKHSTAN 
SECTOR 
AI I energy sectors. 
LEVEL OF GOVERNMENT 
Nat ionaI. 
DESCRIPTION 
The bill on Foreign Investments is in the stage of authorization 
approval with the aim to adopt it by the Parliament in autumn 1994. 
PHASE-OUT 
1 July 2001. 
COUNTRY : KYRGYZSTAN 
SECTOR 
AI I energy sectors. 
LEVEL OF GOVERNMENT 
Nat ionaI. 
DESCRIPTION 
Relevant legislation is currently under preparation. 
PHASE-OUT 
1 July 2001. 
55 -
ARTICLE 10(7) - SPECIFIC MEASURES 
"Each Contracting Party shall accord to Investments in its Area of 
Investors of another Contracting Party, and their related activities 
including management, maintenance, use, enjoyment or disposal, 
treatment no less favourable than that which it accords to Investments 
of its own Investors or of the Investors of any other Contracting Party 
or any third state and their related activities including management, 
maintenance, use, enjoyment or disposal, whichever is the most 
favourable. " 
COUNTRY : BULGARIA 
SECTOR 
AI I energy sectors. 
LEVEL OF GOVERNMENT 
Nat ionaI. 
DESCRIPTION 
Foreign persons may not acquire property right over land. A company 
with more than fifty per cent of foreign person's share may not acquire 
property right over agricultural land; 
Foreigners and foreign legal persons may not aquire property right over' 
land except for as heritage according to the law. In this case they 
have to make it over ; 
A foreign person may aquire property right over buildings, but without 
property right over the land; 
Foreign persons or companies with foreign controlling participation 
must obtain a permit before performing the following activities: 
exploration, development and extraction of natural resources from 
the terrritorial sea, continental shelf or exclusive economic zone; 
acquisition of real estate in geographic regions designated by the 
Council of Ministers. 
The permits are issued by the Council of Ministers or an authorized 
by the Council of Ministers body. 
PHASE-OUT 
1 July 2001. 
56 -
ARTICLE 14(1)(d) 
"Each Contracting Party shall with respect to Investments in its Area 
of Investors of any other Contracting Party guarantee the freedom of 
transfer into and out of its Area, including the transfer of: 
unspent earnings and other remuneration of personnel engaged from 
abroad in connection with that Investment;" 
COUNTRY : BULGARIA 
SECTOR 
All energy sectors. 
LEVEL OF GOVERNMENT 
Nat ionaI. 
DESCRIPTION 
Foreign nationals employed by companies with more than 50 per cent of 
foreign participation, or by a foreign person registered as sole trader 
or a branch or a representative office of a foreign company in 
Bulgaria, receiving their salary in Bulgarian leva, may purchase 
foreign currency not' exeeding 70 per cent of their salary, including 
social security payments. 
PHASE-OUT 
1 July 2001. 
COUNTRY : HUNGARY ' 
SECTOR 
AI I energy sectors. 
LEVEL OF GOVERNMENT 
Nat ionaI. 
DESCRIPTION 
According to the Act on Investmetns of Foreigners in Hungary, 
article 33, foreign top managers, executive managers, members of the 
Supervisory Board and foreign employees may. transfer their income up to 
50 per cent of their aftertax earnings derived from the company of 
their employment through the bank of their company. 
- 57 -
PHASE-OUT 
The phase out of this particular restriction depends on the progress 
Hungary is able to make in the implementation of the foreign exchange 
liberalization programme whose final target is the full convertibility 
of the Forint. This restriction does not create barriers to foreign 
investors. Phase-out is based on stipulations of Article 32. 
1 July 2001. 
- 58 -
ARTICLE 20(3) 
"Each Contracting Party shall designate one or more enquiry points to 
which requests for information about the above mentioned laws, 
regulations, judicial decisions and administrative rulings may be 
addressed and shall communicate promptly such designation to the 
Secretariat which shall make it available on request." 
COUNTRY : ALBANIA 
SECTOR 
AI I energy sectors. 
LEVEL OF GOVERNMENT 
Nat ionaI. 
DESCRIPTION 
In Albania there are no official enquiry points yet to which requests 
for informant ion about the relevant laws and other regulations could be 
addressed. There is no information center either. It is planned to 
establish this center in 1994-1995. The relevant legislation will have 
to be adopted to enable that. 
Technical assistant is required. 
PHASE-OUT 
31 December 1996. 
COUNTRY : ARMENIA 
SECTOR 
AI I energy sectors. 
LEVEL OF GOVERNMENT 
Nat ionaI. 
DESCRIPTION 
In Armenia there are no official enquiry points yet to which requests 
for information about the relevant laws and other regulations could be 
addressed. There is no information centre either. There is a plan to 
establish such a centre in 1994-1995. Technical assistance is required. 
PHASE-OUT 
31 December 1996. 
- 59 -
COUNTRY : AZERBAIJAN 
SECTOR 
AI I energy sectors. 
LEVEL OF GOVERNMENT 
Nat ionaI. 
DESCRIPTION 
There are no official enquiry points so far in Azerbaijan to which 
requests for information about relevant laws and régulât ions .could be 
addressed. At present such information is concentrated in various 
organizat ions. 
PHASE OUT 
31 December 1997. 
COUNTRY : BELARUS 
SECTOR 
AI I energy sectors. 
LEVEL OF GOVERNMENT 
Nat ionaI. 
DESCRIPTION 
Official enquiry offices which could give information on laws, 
regulations, judicial decisions and administrative rulings do not exist 
yet in Belarus. As far as the judical decisions and administrative 
rulings are concerned there is no practice of their publishing. 
PHASE-OUT 
31 December 1998. 
- 60 -
COUNTRY : KAZAKHSTAN 
SECTOR 
AI I energy sectors. 
LEVEL OF GOVERNMENT 
Nat ionaI. 
DESCRIPTION 
The process of establishing inquiry points has begun. As far as the 
judicial decisions and administrâtive rulings are concerned they are 
not published in Kazakhstan (except for some decisions made by the 
Supreme Court), because they are not considered to be sources of law. 
To change the existing practice will require long transitional period. 
PHASE-OUT 
1 July 2001. 
COUNTRY : MOLDOVA 
SECTOR 
AI I energy sectors. 
LEVEL OF GOVERNMENT 
Nat ionaI. 
DESCRIPTION 
It is necessary to establish enquiry points. 
PHASE-OUT 
31 December 1995. 
- 61 -
COUNTRY : RUSSIA 
SECTOR 
AI I energy sectors. 
LEVEL OF GOVERNMENT 
The Federation and the Republics constituting Federation. 
DESCRIPTION 
No official enquiry points exist in the Russian Federation as of now to 
which requests for information about relevant laws and other regulation 
acts could be addressed. As far as the judicial decisions and 
administrative rulings are concerned they are not considered to be 
sources of law. 
PHASE-OUT 
31 December 2000. 
COUNTRY : SLOVENIA 
SECTOR 
AI I energy sectors. 
LEVEL OF GOVERNMENT 
Nat ionaI. 
DESCRIPTION 
In Slovenia there are no official enquiry points yet to which requests 
for information about relevant laws and other regulatory acts could be 
addressed. At present such information is available in various 
ministries. Law on Foreign Investments which is under preparation 
foresees establishment of such an enquiry point. 
PHASE-OUT 
1 January 1998. 
- 62 -
COUNTRY : TADJIKISTAN 
SECTOR 
AI I energy sectors. 
LEVEL OF GOVERNMENT 
Nat ionaI. 
DESCRIPTION 
There are no enquiry points yet in Tadjikistan to which requests for 
information about relevant laws and other regulations could be 
addressed. It is only a question of having available funding. 
PHASE-OUT 
31 December 1997. 
COUNTRY : UKRAINE 
SECTOR 
AI I energy sectors. 
LEVEL OF GOVERNMENT 
Nat ionaI. 
DESCRIPTION 
Improvement of the present transparency of laws up to the level of 
international practice is required. Ukraine will have to establish 
enquiry points providing information about laws, regulations, judicial 
decisions and administrative rulings and standards of general 
appI icat ion. 
PHASE-OUT 
1 January 1998. 
- 63 -
ARTICLE 22(3) 
"Each Contracting Party shall ensure that if it establishes or 
maintains a state entity and entrusts the entity with regulatory, 
administrative or other governmental authority, such entity shall 
exercise that authority in a manner consistent with the Contracting 
Party's obligations under this Treaty". 
COUNTRY: THE CZECH REPUBLIC 
SECTOR 
Uranium and nuclear industries. 
LEVEL OF GOVERNMENT 
Nat ionaI. 
DESCRIPTION 
In order to deplete uranium ore reserves that are stocked by 
Administration of State Material Reserves, no imports of uranium ore 
and concentrates, including uranium fuel bundles containing uranium of 
non-Czech origin, will be licensed. 
PHASE-OUT 
1 July 2001. 
14 September 1994 
ANNEX 2 
TEXT FOR ADOPTION 
DECISIONS WITH RESPECT TO THE ENERGY CHARTER TREATY 
The Conference has adopted the following Decisions 
1. With respect to Article 10(7) 
The Russian Federation may require that companies with foreign 
participation obtain legislative approval for the leasing of 
federally-owned property, provided that, the Russian Federation 
shall ensure without exception that this process is not applied in 
a manner which discriminates among Investments of Investors of 
other Contracting Parties. 
2. With respect to Article 14* 
(1) The term "freedom . of transfer" in Article 14(1) does not 
preclude a Contracting Party (hereinafter referred to as the 
"Limiting Party") from applying restrictions on movement of 
capital by its own Investors, provided that: 
(a) such restrictions shall not impair the rights granted under 
Article 14(1) to Investors of other Contracting Parties 
with respect to their Investments; 
* See footnote to Decision No 2 on page 4 
- 2 -
(b) such restrictions do not affect Current Transactions; and 
(c) the Contracting Party ensures that Investments in its Area 
of the Investors of all other Contracting Parties are 
accorded, with respect to transfers, treatment no less 
favourable than that which it accords to Investments of 
Investors of any other Contracting Party or of any third 
state, whichever is the most favourable. 
(2) This Decision shall be subject to examination by the Charter 
Conference five years after entry into force of the Treaty, but 
not later than the date envisaged in Article 32(3). 
(3) No Contracting Party shall be eligible to apply such 
restrictions unless, it has notified the provisional 
Secretariat in writing no later than 1 July 1995 that it elects 
to be eligible to apply restrictions in accordance with this 
Decision, and it is a Contracting Party which is a state that 
was a constituent part of the former Union of Soviet Socialist 
RepubIies. 
(4) For the avoidance of doubt, nothing in this Decision shall 
derogate, as concerns Article 16, from the rights hereunder of 
a Contracting Party, its Investors or their Investments, or 
from the obligations of a Contracting Party. 
(5) For the purposes of this Decision: 
"Current Transactions" are current payments connected with the 
movement of goods, services or persons that are made in 
accordance with normal international practice, and do not 
include arrangements which materially constitute a combination 
of a current payment and a capital transaction, such as 
deferrals of payments and advances which is meant to circumvent 
respective legislation of the Limiting Party in the field. 
- 3 -
3. With respect to Article 14(2) 
Without prejudice to the requirements of Article 14 and its other 
international obligations, Romania shall endeavour during the 
transition to full convertibility of its national currency to take 
appropriate steps to improve the efficiency of its procedures for 
the transfers of Investment Returns and shall in any case guarantee 
such transfers in a Freely Convertible Currency without restriction 
or a delay exceeding six months. Romania shall ensure that 
Investments in its Area of the Investors of all other Contracting 
Parties are accorded, with respect to transfers, treatment no less 
favourable than that which it accords to Investments of Investors 
of any other Contracting Party or of any third state, whichever is 
the most favourable. 
4. With respect to Articles 24(4)(a) and 25 
An Investment of an Investor referred to in Article 1(7)(a)(ii), of 
a Contracting Party which is not party to an EIA or a member of a 
free-trade area or a customs union, shall be entitled to treatment 
accorded under such EIA, free-trade area or customs union, provided 
that the Investment 
(a) has its registered office, central administration or principal 
place of business in the Area of a party to that EIA or member 
of that free-trade area or customs union; or 
(b) in case it only has its registered office in that Area, has an 
effective and continuous link with the economy of one of the 
parties to that EIA or member of that free-trade area or 
customs union. 
- 4 -
Footnote to Decision No 2 
* This Decision has been drafted in the understanding that 
Contracting Parties which intend to avail themselves of it and 
which also have entered into Partnership and Co-operation 
Agreements with the European Union and its member states 
containing an article disapplying those Agreements in favour of 
this Treaty, will exchange letters of understating which have 
the legal effect of making Article 16 of this Treaty applicable 
between them in relation to this Decision. The exchange of 
letters shall be completed in good time prior to signature. 
ISSN 0254-1467 
KOM(94) 405 endg. 
DOKUMENTE 
DE 01 12 
Katalosmimmer : CB-CO-94-426-DE-C 
ISBN 92-77-80763-6 
Amt für amtliche Veröffeniüchungen der Europäischen Gemeinschaften 
L-2985 Luxemburg