COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 20.09.1995 
COM(95) 440 final 
95/0237 (AVC) 
COMMUNICATION FROM THE COMMISSION 
and 
Proposal for a 
COUNCIL AND COMMISSION DECISION 
on the conclusion by the European Communities of the Energy Charter Treaty 
and of the Energy Charter Protocol on energy efficiency and 
related environmental aspects 
(presented by the Commission) 

COMMUNICATION FROM THE COMMISSION 
on the conclusion by the European Communities of the Energy Charter Treaty 
and of the Energy Charter Protocol on energy efficiency and 
related environmental aspects 
1. The Energy Charter Treaty (hereinafter referred to as "the Treaty") and the 
Energy Charter Protocol on energy efficiency and related environmental aspects 
("the Protocol") were signed by the European Communities and the Member States in 
Lisbon on 17 December 1994. A total of 50 parties have signed the Treaty and the 
Protocol. 
2. In accordance with Article 45 of the Treaty, the European Communities, like 38 of the 
50 signatories, have been applying the Treaty provisionally since the date of signature(1). 
3. The Commission hereby proposes that the Council approve the Treaty, as provided for 
in Article 39 thereof, and the Protocol, as provided for in Article 15 thereof. 
4. In particular, the Commission considers that conclusion of the Treaty and the Protocol 
by the European Communities will mark a major step in the development of 
cooperation with the countries of Central and Eastern Europe and of the Commonwealth 
of Independent States. On the one hand, the Treaty will provide greater legal certainty 
for investors, by giving them the benefit of national treatment, will introduce an 
obligation for transparent treatment of investments and will give consumer countries 
supply guarantees. At the same time the implementing procedures (Secretariat, 
Ministerial Conference and recognized arbitration mechanisms) guarantee control and 
introduce a process for cooperation in the energy field. This Treaty must in due course 
be further strengthened by a second Treaty, currently under negotiation, on 
pre-investment, aiming at extending the guarantees offered to new investors. The 
Protocol in turn will provide greater protection for the environment, notably by 
promoting energy efficiency. 
5. Consequently, the Commission hereby submits to the Council a.proposal for a Decision 
on approval of the Treaty and the Protocol by the Council and the Commission under 
the EC Treaty and under the ECSC and Euratom Treaties respectively, on grounds of 
simplification of procedures, as was the case with conclusion of the 
European agreements. The decisions taken by the Commission under the ECSC and 
Euratom Treaties require unanimous approval by the Council or approval by a qualified 
majority of the Council respectively. The decision taken unanimously by the Council 
under the second sentence of Article 228(2) of the EC Treaty requires the assent of the 
European Parliament, as provided for by the second subparagraph of Article 228(3), 
because cf the institutional implications of the Energy Charter Treaty. The decision 
taken by the Commission under the ECSC Treaty also requires consultation of the 
Consultative Committee. 
(,) See Council Decisions of 15 December 1994, OJ No L 380, 31.12.1994. 
2 
6. In view of the decisions to be taken by the Energy Charter Conference set up by the 
Treaty, the Commission considers that appropriate procedures must be decided for 
adoption of the Communities' position within the Energy Charter Conference. In line« 
with the requirement for close cooperation reaffirmed in the Court of Justice's 
Opinion 1/94, the Commission also considers that the positions of the Communities and 
of the Member States must be coordinated with regard to the decisions to be taken by 
the Energy Charter Conference in the fields for which they share responsibility. For 
the same reason, provision must be made for them simultaneously to deposit 
their instruments of ratification with the Depositary, the Government of the 
Portuguese Republic. 
7. The Commission therefore proposes that the Council adopt, pursuant to the EC Treaty 
and after obtaining the assent of the European Parliament, the Decision on conclusion 
of the Energy Charter Treaty and of the Energy Charter Protocol on energy efficiency 
and related environmental aspects. 
8. This text is also submitted to the Council as a draft Commission Decision on 
conclusion of the Energy Charter Treaty and of the Energy Charter Protocol on energy 
efficiency and related environmental aspects: 
for assent pursuant to the ECSC Treaty, and 
for approval pursuant to the Euratom Treaty. 
Proposal for a 
COUNCIL AND COMMISSION DECISION 
on the conclusion by the European Communities of the Energy Charter Treaty 
and of the Energy Charter Protocol on energy efficiency and 
related environmental aspects 
THE COUNCIL OF THE EUROPEAN UNION, 
THE COMMISSION OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European Coal and Steel Community, and in 
particular Article 95 thereof, 
Having regard to the Treaty establishing the European Community, and in particular 
Articles 54(2), the last sentence of Article 57(2), Articles 66, 73c(2), 87, 99, 100a, 113, 
130s(l) and 235, in conjunction with the second sentence of Article 228(2) and the second 
subparagraph of Article 228(3) thereof, 
Having regard to the Treaty establishing the European Atomic Energy Community, and in 
particular the second paragraph of Article 101 thereof, 
Having regard to the opinion of the Consultative Committee set up by the Treaty establishing 
the European Coal and Steel Community, 
Having regard to the proposal from the Commission(1), 
Having regard to the opinion of the European Parliament^, 
Having regard to the approval given by the Council pursuant to Article 101 of the Treaty 
establishing the European Atomic Energy Community, 
Whereas the European Energy Charter was signed by the European Communities and by their 
Member States on 17 December 1991; 
Whereas on 17 December 1994 the European Coriimunities and their Member States signed 
the Energy Charter Treaty and the Energy Charter Protocol on energy efficiency and related 
environmental aspects in order to provide a secure and binding international legal framework 
for the principles and objectives set out in that Charter; 
Whereas the European Communities and their Member States have been applying the 
Energy Charter Treaty provisionally by virtue of Council Decisions 94/998/EC and 
94/1067/Euratom(3) since the date of signature thereof; 
Whereas the principles and objectives of the Energy Charter Treaty are of fundamental 
importance to Europe's future, allowing the members of the Commonwealth of 
Independent States and the countries of Central and Eastern Europe to develop their energy 
potential, while helping to improve security of supply; 
(,) OJ No 
(2) OJ No 
(3) OJNo L 380, 31.12.1994, pp. 1 and 113. 
Whereas the principles and objectives of the Energy Charter Protocol on energy efficiency and 
related environmental aspects will help provide greater protection for the environment, notably 
by promoting energy efficiency; 
Whereas it is necessary to consolidate the initiative and the central role of the 
European Communities, by enabling the latter to participate fully in implementation of the 
Energy Charter Treaty and of the Energy Charter Protocol on energy efficiency and related 
environmental aspects; 
Whereas conclusion of the Energy Charter Treaty and of the Energy Charter Protocol on 
energy efficiency and related environmental aspects will help attain the objectives of the 
European Communities; 
Whereas Article 73c(2) of the EC Treaty must be used as a legal basis for this Decision since 
the Energy Charter Treaty imposes certain obligations on the European Communities 
regarding the movement of capital and payments between the Communities and third country 
contracting parties to the Energy Charter Treaty; 
Whereas the Energy Charter Treaty could affect legislative acts based on Article 235 of the 
EC Treaty; whereas the Treaty has provided no powers other than those arising from the 
abovementioned Article for implementation of the obligations imposed by the Treaty with 
regard to cooperation in the energy field; 
Whereas the Energy Charter Treaty and the Energy Charter Protocol on energy efficiency and 
related environmental aspects must be approved by the European Communities; 
Whereas the Energy Charter Conference established by the Energy Charter Treaty 
has autonomous decision-making powers; whereas, consequently, appropriate procedures 
must be provided for deciding the European Communities' position within the 
Energy Charter Conference; 
Whereas in order to ensure uniform external representation of the European Communities both 
in the conclusion procedure and in implementing the commitments entered into by the 
European Communities and the Member States, appropriate coordination procedures should 
be established; whereas, to this end, provision should be made for this Decision to be 
deposited with the Government of the Portuguese Republic at the same time as the 
instruments of ratification of the Member States; whereas, for the same reason, the position 
to be adopted by the European Communities and by the Member States must be coordinated 
with regard to the decisions to be taken by the Energy Charter Conference set up by the 
Treaty in the fields for which they share responsibility, 
HAVE DECIDED AS FOLLOWS: 
Article 1 
The Energy Charter Treaty and the Energy Charter Protocol on energy efficiency and related 
environmental aspects are hereby approved on behalf of the European Coal and 
Steel Community, the European Community and the European Atomic Energy Community. 
The texts of the Energy Charter Treaty and of the Energy Charter Protocol on energy 
efficiency and related environmental aspects are attached to this Decision. 
Article 2 
The Chairman of the Council shall, on behalf of the European Community, deposit the 
instrument of approval of the Energy Charter Treaty and of the Energy Charter Protocol 
on energy efficiency and related environmental aspects with the Government of the 
Portuguese Republic, in accordance with Articles 39 and 49 of the Energy Charter Treaty and 
with Articles 15 and 21 of the Energy Charter Protocol on energy efficiency and related 
environmental aspects. Under the same conditions, the President of the Commission shall 
deposit the instruments of approval on behalf of the European Coal and Steel Community and 
of the European Atomic Energy Community. 
The Chairman of the Council and the President of the Commission, acting on behalf of the 
European Community and the European Coal and Steel Community respectively, shall consult 
with the Member States in order to ensure the simultaneous deposit of their instruments of 
approval. 
Article 3 
The position which the European Communities and EURATOM may be required to take 
within the Charter Conference with regard to decisions binding on them shall be adopted by 
the Council, acting by qualified majority on a proposal from the Commission, after consulting 
the European Parliament pursuant to the first subparagraph of Article 228(3) of the EC Treaty. 
The position to be taken in the name of the ECSC shall be adopted by the Commission on 
the basis of the Council's opinion, acting by qualified majority pursuant to Article 28 of the 
ECSC Treaty. 
Where the decisions to be taken by the Energy Charter Conference are binding in respect of 
their respective competences, the European Communities and the Member States shall 
establish a common position according to a procedure to be adopted unanimously by the 
Council on the basis of a Commission proposal by 1 July 1996 at the latest, or, failing 
adoption by that date, by a qualified majority on a proposal from the Commission. 
Article 4 
This Decision shall be published in the Official Journal of the European Communities. 
Done at Brussels, 
For the Council For the Commission 
The President The President 
<t 
31. 12. 94 Official Journal of the European Communities No L 380/3 
FINAL ACT OF THE EUROPEAN ENERGY CHARTER CONFERENCE 
I. The final Plenary Session of the European Energy 
Charter Conference was held at Lisbon on 16 to 
17 December 1994. Representatives of the 
Republic of Albania, the Republic of Armenia, 
Australia, the Republic of Austria, the Azerbaijani 
Republic, the Kingdom of Belgium, the Republic 
of Belarus, the Republic of Bulgaria, Canada, the 
Republic of Croatia, the Republic of Cyprus, the 
Czech Republic, the Kingdom of Denmark, the 
Republic of Estonia, the European Communities, 
the Republic of Finland, the French Republic, the 
Republic of Georgia, the Federal Republic of 
Germany, the Hellenic Republic, the Republic of 
Hungary, the Republic of Iceland, Ireland, the 
Italian Republic, Japan, the Republic of 
Kazakhstan, the Republic of Kyrgyzstan, the 
Republic of Latvia, the Principality of Liech­
tenstein, the Republic of Lithuania, the Grand 
Duchy of Luxembourg, the Republic of Malta, the 
Republic of Moldova, the Kingdom of the 
Netherlands, the Kingdom of Norway, the 
Republic of Poland, the Portuguese Republic, 
Romania, the Russian Federation, the Slovak 
Republic, the Republic of Slovenia, the Kingdom 
of Spain, the Kingdom of Sweden, the Swiss 
Confederation, the Republic of Tajikistan, the 
Republic of Turkey, Turkmenistan, Ukraine, the 
United Kingdom of Great Britain and Northern 
Ireland, the United States of America and the 
Republic of Uzbekistan (hereinafter referred to as 
'the representatives') participated in the 
Conference, as did invited observers from certain 
countries and international organizations. 
BACKGROUND 
II. 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 ïhçn Union of Soviet 
Socialist Republics could be catalysed and accel­
erated by cooperation in the energy sector. This 
suggestion was welcomed by the Council, which 
invited the Commission of the European 
Communities to study how best to implement such 
cooperation. In February 1991 the Commission 
proposed the concept of a European Energy 
Charter. B'russels in July 1991 to launch negotiations on the 
European Energy Charter. A number of other 
countries and international organizations were 
invited to attend the European 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 to 17 
December 1991. Signatories of the Charter, then 
or subsequently, include all those listed in Section 
I, 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 
cooperation as soon as possible by negotiating 
in good faith a Basic Agreement and Protocols. 
The European Energy Charter Conference 
accordingly began negotiations on a Basic 
Agreement — later called the Energy Charter 
Treaty — designed to promote east-west industrial 
cooperation by providing legal safeguards in areas 
such as investment, transit and trade. It 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 Energy Charter 
Treaty. 
Negotiations on the Energy Charter Treaty and 
the Energy Charter Protocol on energy efficiency 
and related environmental aspects were 
successfully completed in 1994. 
Following discussion of the Commission's proposal 
in the Council of the European Communities, the 
European Communities invited the other countries 
of western and eastern Europe, of the Union of 
Soviet Socialist Republics and the non-European 
members of the Organization for Economic Coop­
eration and Development to attend a conference in THE ENERGY CHARTER TREATY 
III. As a result of its deliberations the European 
Energy Charter Conference has adopted the text 
of the Energy Charter Treaty (hereinafter referred 
No L 380/4 Official Journal of thé European Communities 31. 12.94 
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. 
UNDERSTANDINGS (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 unes, 
. and construction of facilities for such, 
including the laying of oil, gas, and 
coal-slurry pipelines; 
IV. By signing the Final Aa, the represenutives agreed 
to adopt- the following understandings with respect 
to the Treaty: 
1. With respect to the Treaty as a whole 
(a) The represenutives 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 cooperation in a 
particular sector and as a result cannot be 
construed to constitute a precedent in the 
context of Other international negotiations. (iv) removal and disposal of wastes from 
energy related facilities such as power 
sutions, including radioactive wastes 
from nuclear power sutions; 
(v) decommissioning of energy related 
facilities, including oil rigs, oil 
refineries and power generating 
plants; 
(vi) marketing and sale of, and trade in 
energy materials* and products, e.g., 
reuil sales of gasoline; and 
(b) The provisions of the Treaty do not: 
(i) oblige any Contracting Party to 
introduce mandatory third parry 
access; or (vii) research, consulting, planning, 
management and design activities 
related to the activities mentioned 
above, including those aimed at 
improving energy efficiency. 
(ii) prevent the use of pricing 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 
generally. 
2. With respect to Article 1 (5) 
(a) It is understood that the 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; 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 subsuntial influence 
over the management and operation of the 
investment; and 
(c) ability to exercise subsuntial influence 
over the selection of members of the board 
of directors or any other managing body. # 
(ii) construction and operation of power 
generation facilities, including those 
powered by wind and other 
renewable energy sources; Where there is doubt as to whether an investor 
controls, directly or indirecdy, an investment, 
an investor claiming such control has the 
burden of proof that such control exists. 
31. 12. 94 Official Journal, of the European Communities No L 380/5 
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 represenutives recognize the necessity for 
adequate and effective protection of intel­
lectual property rights according to the highest 
internationally-accepted sundards. 
6. With respect to Article 5 (1) 
The represenutives' 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 Investment 
Measures' annexed to the Final Act of the 
Uruguay Round of Multilateral Trade 
Negotiations are implicit in Articles III and XI 
of the General Agreement on Tariffs and 
Trade (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 exploiutive abuses. 
(b) 'Enforcement' and 'enforces' include 
action under the competition laws of a 
Contracting Party by way of investigation, 
legal proceeding, «r "administrative action 
as well as by way of any decision or 
further law granting or continuing an 
authorization. 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. 
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 sute assets 
(privatization) and to the dismantling of 
monopolies (demonopolization). 
11. With respect to Articles 10 (4) and 29 (6) 
Contracting Parties may consider any 
connection between the provisions of Article 
10 (4) and Article 29 (6). 
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 
Moneury 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 environmenul impacts should be subject to 
legal requirements, the authorities competent 
to uke decisions in relation to such 
requirements, and the appropriate procedures 
to be followed. 
14. With respect to Articles 22 and 23 
8. With respect to Article 7 (4) 
The applicable legislation would include 
provisions on environmenul protection, land 
use, safety, or technical sundards. 
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 With regard to trade in energy materials and 
products governed by Article 29, that Article 
specifies the provisions relevant to the subjects 
covered by Articles 22 and 23. 
15. With respect to Article 24 
Exceptions conuined in the GATT and 
Related Instruments apply between particular 
Contracting Parties which are parties to the 
GAIT, as recognized by Article 4. With 
respect to trade in energy materials and 
No L 380/6 Official Journal of the European Communities 31. 12. 94 
products governed by Article 29, that Article 
specifies the provisions relevant to the subjects 
covered by Article 24. 
16. With respect to Article 26 (2) (a) 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 signature of the Treaty. 
Article 26 (2) (a) should not be interpreted to 
require a Contracting Party to enact Part III 
of the Treaty into its domestic law. (b) The Charter Conference should adopt the 
annual budget before the beginning of the 
financial year. 
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 organ­
izations, even if they are legally binding, or 
treaties which entered into force before 1 
January 1970. 
18. With respect to Article 29 (2) (a) 21. With respect to Article 34 (3) (m) 
The technical changes to Annexes might for 
insunce include, delisting of non-signatories 
or of signatories that have evinced their 
intention not to ratify, or additions to Annexes 
N and VC. It is intended that the Secretariat 
would propose such changes to the Charter 
Conference when appropriate. 
(a) Where a provision of GATT Ï947 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 uke such action. 
(b) The notion 'applied on 1 March 1994 and 
practised with regard to energy materials 
and products by parties to GATT 1947 
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 never­
theless applies unilaterally on a de facto 
basis some provisions of the GATT 
vis-à-vis that other party to the GATT. 
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 Tide III of ' the 
European Energy Charter that Protocols be 
negotiated in areas of cooperation such as 
those listed in Title III of the Charter. 
20. With respect to Article 34 
(a) The provisional Secreury-General should 
make immediate conuct with other inter­
national bodies in order to discover the 
terms on which they might be willing to 
undertake usks arising from the Treaty 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. 
(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 sute agencies. The Charter 
Conference could, however, clarify for 
purposes of Annex TFU which types of 
agreements referred to in Article 29 (2) (b) 
require notification under the Annex and 
which types do not. 
DECLARATIONS 
V. The represenutives declared that Article 18 (2) 
shall not be construed to allow the circumvention 
of the application of the other provisions of the 
Treaty. 
VI. The representatives also noted the following 
declarations that were made with respect to the 
Treaty: f» 
31. 12. 94 Official Journal of the European Communities No L 380/7 
1. With respect to Article 1 (6) 4. With respect to Article 10 
# The Russian Federation wishes to have recon­
sidered, in negotiations with regard to the 
supplementary treaty referred to in Article 
10 (4), the question of the importance of 
national legislation with respea to the issue of 
control as expressed in the undemanding to 
Article 1 (6). 
2. With respect to Articles 5 and 10 (11) 
Australia notes that the provisions of Articles 5 
and 1C (11) do not diminish its rights and obli­
gations under the GATT, including as elab­
orated in the Uruguay Round Agreement 
on Trade-Related Investment Measures, 
particularly with respect to the list of exceptions 
in Article 5 (3), which it considers incomplete. 
Australia further notes that it would not be 
appropriate for dispute settlement bodies esub-
lished under the Treaty to give interpreutions 
of GATT Articles III and XI in the context of 
disputes between parties to the GATT or 
between an investor of a party to the GATT 
and another party to the GATT. It considers 
that with respect to the application of Article 10 
(11) between an investor and a party to the 
GATT, the only issue that can be considered 
under Article 26 is the issue of the awards of 
arbitration in the event that a GATT panel or 
the WTO dispute settlement body first esub-
Hshes that a trade-related investment measure 
maintained by the Contracting Party is incon­
sistent with its obligations under the GATT or 
the Agreement on Trade-Related Investment 
Measures. 
3. With respect to Article 7 
The European Communities and their Member 
Sûtes and Austria, Norway, Sweden and 
Finland declare that the provisions of Article 7 
are subject to the conventional rules of inter­
national law on jurisdiction over submarine 
cables and pipelines or, where there are no such 
rules, to general international law. 
They further declare that Article 7 is not 
intended to affect the interpreution of existing 
international law on jurisdiction over submarine 
cables and pipelines, and cannot be considered 
as doing so. Canada and the United. Sûtes of America 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 circum­
stances. In determining whether differential 
treatment of investors or investments is 
consistent with Article 10, two basic factors 
must be uken into account. 
The first factor is the policy objectives of 
Contracting Parties in various fields in so far as 
they are consistent with the principles of 
non-discriminatiôn set out in Article 10. 
Legitimate policy objectives may justify differ­
ential treatment of foreign investors or their 
investments in order to reflect a dissimilarity of 
relevant circumsunces 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 atuinment of the 
same objectives in so far as domestic investors 
or investments are concerned. Those foreign 
investors or their investments would thus not be 
'in similar circumsunces' to domestic investors 
or their investments. Thus, even if such a 
measure accorded differential treatment, it 
would not be contrary to Article 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 counter­
vailing 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. 
No L 380/8 Official Journal of the European Communities 31.12.94 
5. With respect to Article 25 7. With respect to Annex G (4) 
The European Communities and their Member 
Sûtes recall that,.in accordance with Article 58 
of the Treaty esublishing the European 
Community: 
(a) companies or firms formed in accordance 
with the law of a Member Sute and having 
their registered office, central adminis­
tration or principal place of business within 
the Community shall, for the right of esub-
lishment pursuant to Part Three, Title III, 
Chapter 2 of the Treaty esublishing the 
European Community, be treated in the 
same way as natural persons who are 
nationals of Member Sûtes; 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 Sûtes; 
(b) 'companies and firms' means companies or 
firms constituted under civil or commercial 
law, including cooperative societies, and 
other legal persons governed by public or 
private law, save for those which are 
non-profitmaking. (a) The European . Communities 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 esublishing a partnership 
between the European Communities and 
their Member Sûtes, of the one part, and 
the Russian Federation, of the other part, 
signed at Corfu on 24 June 1994, the 
exchange of letters atuched thereto and the 
related joint declaration, and disputes 
regarding such trade will be subject to the 
procedures of the said Agreement. 
(b) The European Communities and Ukraine 
declare that, in accordance with the Part­
nership and Cooperation Agreement signed 
at Luxembourg on 14 June 1994 and the 
Interim Agreement thereto, initialled there 
the same day, trade in nuclear materials 
between them shall be exclusively governed 
by the provisions of a specific agreement to 
be concluded between the European Atomic 
Energy Community and Ukraine. 
The European Communities and their Member 
Sûtes further recall that: 
Community law provides for the possibility to 
extend the treatment described above to 
branches and agencies of companies or firms 
not esubiished in one of the Member Sûtes; 
and that, the application of Article 25 of the 
Energy Charter Treaty will allow only those 
derogations necessary to safeguard the prefer­
ential treatment, resulting from the wider 
process of economic integration resulting from 
the Treaties es'ublishing the European 
Communities. 
6. 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 applies to Greenland and the 
Faroe Islands. Until entry into force of this specific 
agreement, the provisions of the Agreement 
on Trade and Economic and Commercial 
Cooperation between the European 
Economic Community, the European 
Atomic Energy Community and the Union 
of Soviet Socialist Republics signed at 
Brussels on 18 December 1989 shall 
exclusively continue to apply to trade in 
nuclear materials between them. 
(c) The European Communities and 
Kazakhsun declare that, in accordance 
with the Partnership and Cooperation 
Agreement initialled at Brussels on 20 May 
1994, trade in nuclear materials between 
them shall be exclusively governed by the 
provisions of a specific agreement to be 
concluded between the European Atomic 
Energy Community and Kazakhsun. 
Until entry into force of this specific 
agreement, the provisions of the Agreement 
on Trade and Economic and Commercial 
Cooperation between the European 
Economic Community, the European 
Atomic Energy Community and the Union 
of Soviet Socialist Republics signed at # 
31. 12. 94 Official Journal of the European Communities No L 380/9 
Brussels on 18 December 1989 shall 
exclusively continue to apply to trade in 
nuclear materials between them. 
(d) The European Communities and 
Kyrgyzsun declare that, in accordance with 
the Agreement on Partnership and Co­
operation initialled at Brussels on 31 May 
1994, trade in nuclear materials between 
them shall be exclusively governed by the 
provisions of a specific agreement to be 
concluded between the European Atomic 
Energy Community and Kyrgyzsun. 
Until entry into force of this specific 
agreement, the provisions of the Agreement 
on Trade and Economic and Commercial 
Cooperation between the European 
Economic Community, the European 
Atomic Energy Community and the Union 
of Soviet Socialist Republics signed at 
Brussels on 18 December 1989 shall 
exclusively continue to apply to trade in 
nuclear materials between them. 
(e) The European Communities and Tajikistan 
declare that trade in nuclear materials 
between them shall be exclusively governed 
by the provisions of a specific agreement to 
be concluded between the European Atomic 
Energy Community and Tajikisun. 
Until entry into force of this specific 
agreement, the provisions of the Agreement 
on Trade and Economic and Commercial 
Cooperation between the European 
Economic Community, the European 
Atomic Energy Community and the Union 
of Soviet Socialist Republics signed at 
Brussels on 18 December 1989 shall 
exclusively continue to apply to trade in 
nuclear materials between them. (f) The European Communities and Uzbek­
istan declare that trade in nuclear materials 
between them shall be exclusively governed 
by the provisions of a specific agreement to 
be concluded between the European Atomic 
Energy Community and Uzbekistan. 
Until entry into force of this specific 
agreement, the provisions of the Agreement 
on Trade and Economic and Commercial 
Cooperation between the European 
Economic Community, the European 
Atomic Energy Community and the Union 
of Soviet Socialist Republics signed at 
Brussels on 18 December 1989 shall 
exclusively continue to apply to trade in 
nuclear materials between them. 
THE ENERGY CHARTER PROTOCOL ON ENERGY 
EFFICIENCY AND RELATED ENVIRONMENTAL 
ASPECTS 
VII. The European Energy Charter Conference has 
adopted the text of the Energy Charter Protocol 
on energy efficiency and related environmenul 
aspects which is set out in Annex 3. 
THE EUROPEAN ENERGY CHARTER 
VIII. 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. 
DOCUMENrATION 
XL The records of negotiations of the European 
Energy Charter Conference will be deposited with 
the Secreuriat. 
No L 380/10 Official Journal of the European Communities 31.12.94 
Done at Lisbon on the seventeenth day of December in the year one thousand nine hundred 
and ninety-four. ^ 
Fait à Lisbonne, le dix-sept décembre mil neuf cent quatre-vingt-quatorze. 
Geschehen zu Lissabon am siebzehnten Dezember neunzehnhundertvierundneunzig. 
Fatto a Lisbona il diciassettesimo giorno del mese di dicembre delPanno millenovecentonovanta-
quattro. 
CoBepuieHO B Jlncca6one B ceuHanunTufl neHb ziexaSpfl OûHa TUCîma 
nçBHTbcoT ûeBHHOCTO «jeTBepToro rona. 
Hecho en Lisboa, el diecisiete de diciembre de mil novecientos noventa y cuatro. 
Udfserdiget i Lissabon, den syttende december nittenhundrede og fireoghalvfems. 
'Eytve orri Ataapôva, cmç ÔéKa enxà AeKenPpCou TOO éxooç x&va eviaKÔaia evevf}vra téaaepa. 
Gedaan te Lissabon, de zeventiende december negentienhonderd vierennegentig. 
Feito em Lisboa, aos dezassete de Dezembro de mil novecentos e noventa e quatro. 
i 
31.12.94 Official Journal of the European Communities 
Per Republikën e Shqipërisë 
^lUjuiuimuGp ^tuûpuitqbinnipjuiû huiduip No L 380/11 
* 
For Australia 
Fur die Republik Osterreich 
No L 380/12 Official Journal of the European Communities 31.12. 94 
AaepôafiiiaH amtHvax 
C , O- rt { 
Pour le royaume de Belgique 
Voor het Koninkrijk België 
Fur das Kônigreich Belgien 
Cette signature engage également la Communauté française de Belgique, la Communauté flamande, 
la Communauté germanophone de Belgique, la Région wallonne, la Région flamande et la région 
de Bruxelles-Capitale. 
Deze handtekening bindt eveneens de Vlaamse Gemeenschap, de Franse Gemeenschap van België, 
de Duitstalige Gemeenschap van België, het Waals Gewest en het Brussels Hoofdstedelijk Gewest. 
Dièse Unterschrift bindet ebenso die Flàmische Gemeinschaft, die Franzôsische Gemeinschaft Belgi­
ens, die Deutschsprachige Gemeinschaft Belgiens, die Flamische Region, die wallonische Region 
und die Region Briissel-Hauptstadt. 
An iyfl PacnyÔJiiKi Benapycb 
3a PenyôuHKa 5i>JirapKfl 
31.12. 94 Official Journal of the European Communities No L 380/13 
For Canada 
Pour le Canada 
za Republiku Hrvatsku 
a* (Vs* f 
For the Republic of Cyprus 
^^c/L^^ LOULCV^ 
ZaCeskou Republiku 
No L 380/14 Official Journal of the European Communities 31.12.94 
For Kongeriget Danmark 
c% ~^r? . JrTfyA*^-^ 
Eesti Vabariigi nimel 
Por las Comunidades Europeas 
For De Europaeiske Faellesskaber 
Fur die Europaischen Gemeinschaften 
Tta TIC EopcùîtaïKéç KoivôxT|Teç 
For the European Communities 
Pour les Communautés européennes 
Per le Comunità europee 
Voor de Europese Gemeenschappen 
Pelas Comunidades Europeias 
"> 
•idU/ l 
Suomen tasavallan puolesta 
- < 
31.12. 94 Official Journal of the European Communities No L 380/15 
Pour la République française 
Fur die Bundesrepublik Deutschland 
Tia rr|v EXXTIVUCVI Arç^ÔKpa-ria 
No L 380/16 Official Journal of the European Communities 31.12. 94 
A Magyar Koztarsasag ncvében 
Fyrir hônd Lyôveldisins islands 
és l ***)Uu> 
Thar cheann na hÉireann 
For Ireland 
Per la Repubblica italiana 
31.12. 94 Official Journal of the European Communities No L 380/17 
0*CHO7t<DlC 
Ka3axcTan Pecny6jiHKacunun aTuiiaH 
Kupru3 PecnyôJiMxacu ynyn 
Latvijas Republikas varda 
No L 380/18 Official Journal of the European Communities 31. 12. 94 
Fur das Furstentum Liechtenstein 
r\ \>^~\ 
Lietuvos Respublikos vardu 
Pour le grand-duché de Luxembourg 
For the Republic of Malta 
31.12. 94 Official Journal of the European Communities No L 380/19 
Pentru Republica Moldova 
A * 
H l«\ 
f 
Voor het Koninkrijk der Nederlanden 
V\ ^\ 
For Kongeriket Norge 
/TWM^ 
Za Rzeczpospolita Polska 
*-f/^/* ^-KèAdif s 
No L 380/20 Official Journal of the European Communities 31.12.94 
Pela Republica Portuguesa 
\a' 
Pentru Romania 
I T^-
3a PoccaficxyD <î>eiiepaunD 
Za Slovensku republiku 
0&*b 6^4 
31i 12.94 Official Journal of the European Communities No L 380/21 
Za Republiko Slovenijo 
s mc 
Por el Reino de Espana 
For Konungariket Sverige 
N 
'1Qy^/W-CMA, 
Fiir die Schweizerische Eidgenossenschaft 
Pour la Confédération^suisse 
Per la Confederazione svizzera 
IfilCLt^-t^SW^ 
No L 380/22 Official Journal of the European Communities 31.12.94 
A3 UOMH T07MKHCTOU 
Turkiye Cumhuriyeti adina 
TypxueHHCTaH XeicyMCTHimn onunxian 
3a yxpaiiiy 
31.12.94 Official Journal of die European Communities No L 380/23 
For the United Kingdom of Great Britain and Northern Ireland 
.2 LSÇ^ tJ-rJ/L 
For the United States of America 
y36c*MC'roii PcciiyfiJiHKUCM XyxyuaTH iiouHxiaii 
No L 380/24 Official Journal of the European Communities 31. 12. 94 
ANNEX 1 
THE 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 Contracung 
Panics which are not currendy 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 Contracung Parties which are also parlies to the General 
Agreement* op 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-Proliferation 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; 
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 decom­
missioning of energy installations and waste disposal, and for internationally-agreed objectives and criteria 
for these purposes, 
31. 12. 94 Official Journal of the European Communities No L 380/25 
HAVE AGREED AS FOLLOWS: 
PARTI 
DEFINITIONS AND PURPOSE 
Article 1 
Definitions 
* As used in this Treaty: 
'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 Cooperation 
Council and the combined nomenclature of the 
European Communities, means the items included in 
Annex EM. (b) a company or business enterprise, or shares, 
stock, or other forms of equity participation in a 
company or business enterprise, and bonds and 
other 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 or 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 date of 
entry into force of this Treaty for the Contracting 
Party of the investor making the investment and that 
for the Contracting Party in the area of which the 
investment is made (hereinafter referred to as the 
'effective date') provided that the Treaty shall only 
apply to matters affecting such investments after the 
effective date. 
'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. '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: 
.6. 'Investment' means every kind of asset, owned or 
controlled directly or indirectly by an investor and 
includes: (a) with respect to a Contracting Party: 
(a) tangible and intangible, and movable and 
immovable, property, and any property rights 
such as leases, mortgages, liens, and pledges; (i) a natural person having the citizenship or 
nationality of or who is permanently residing 
in that Contracting Party in accoidance with 
its applicable law; 
No L 380/26 Official Journal of the European Communities 31. 12. 94 
(ii) a company or other organization organized 
in accordance with the law applicable in that 
Contracting Party; A party to the Agreement Establishing the World 
Trade Organization is considered to be a party 
to GATT 1994. 
(b) with respect to a 'third State', a natural person, 
company or other organization which fulfils, 
mutatis mutandis, the conditions specified in 
subparagraph (a) for a Contracting Party. 
'Make investments' or 'making of investments' 
means 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 they are 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: 12. (d) 'Related Instruments' means, as appropriate: 
(i) agreements, arrangements or other legal 
instruments, including decisions, declarations 
and understandings, concluded under the 
auspices of GATT 1947 as subsequently 
rectified, amended or modified; or 
(ii) the Agreement Esublishing the World Trade 
Organization including its Annex 1 (except 
GATT 1994), its Annexés 2, 3 and 4, and 
the decisions, declarations and under­
standings related thereto, as subsequently 
rectified, amended or modified. 
'Intellectual property' includes copyrights and 
related rights, trademarks, geographical indications, 
industrial designs, patents, layout designs of inte­
grated circuits and the protection of undisclosed 
information. 
(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 inter­
national 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' or 'GATT 1994', 
or both of them where both are applicable. 
(b) '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 Committee of the United Nations 
Conference on Trade and Employment, as 
subsequently rectified, amended or modified. 13. (a) 'Energy Charter Protocol' or 'Protocol' means 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 cooperation 
pursuant to Title III of the Charter. 
(b) 'Energy Charter Declaration' or 'Declaration' 
means a non-binding instrument, the negotiation 
of which is authorized and the text 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 currency5 means a currency which 
is widely traded in international foreign exchange 
markets and widely used in international trans­
actions. 
Article 2 
Purpose of the Treaty 
(c) '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. This Treaty establishes a legal framework in order to 
promote long-term cooperation in the energy field, 
based on complementarities and mutual benefits, in 
accordance with the objectives and principles of the 
Charter. 
31. 12. 94 Official Journal of the European Communities No L 380/27 
PARTE 
COMMERCE 
Article 3 
International markets amount related to the volume or value of local 
production that it exports; 
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. (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; or 
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 (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 subparagraphs 
2 (a) and (c) as a condition of eligibility for export 
promotion, foreign aid, government procurement or 
preferential tariff or quota programmes. 
1. A Contracting Party shall not apply any trade-
related investment measure that is inconsistent with the 
provisions of Article III or XI of the GATT; this shall be 
without prejudice to the Contracting Part/s rights and 
obligations under the GATT and' Related Instruments 
and Article 29. 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. 
ê 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: 
(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", or 
(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; 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. 
or which restricts: 
(c) the importation by an enterprise of products used in 
or related to its local production, generally or to an 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 implemen­
tation of competition rules to other Contracting Parties. 
No L 380/28 Official Journal of the European Communities 31. 12. 94 
4. Contracting Parties may cooperate, 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 notifi­
cation 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 arid co­
operation as the notifying 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 au­
thorities 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. 2. Contracting Parties shall encourage relevant entities 
to cooperate 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; 
(c) measures to mitigate the effects of interruptions in 
the supply of energy materials and products; 
(d) facilitating the interconnection of energy transport 
facilities. 
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 with 
paragraph 1. 
5. A Contracting Party through whose area energy 
materials and products may transit shall not be obliged 
to 
7. The procedures set forth in paragraph 5 and Article 
27 (1) shall be the exclusive means within this Treaty of 
resolving any disputes ^hat may arise over the implemen­
tation or interpretation of this Article. (a) permit the construction or modification of energy 
transport facilities; or 
(b) permit new or additional transit through existing 
energy transport facilities, 
Article 7 
Transit which it demonstrates to the other Contracting Parties 
concerned would endanger the security or efficiency of 
its energy systems, including the security of supply. 
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, desti­
nation or ownership of such energy materials and 
products or discrimination as to pricing on the basis of 
such distinctions, and without imposing any unreas­
onable delays, restrictions or charges. 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 
31. 12. 94 Official Journal of the European Communities No L 380/29 
dispute over any matter arising from that transit, 
interrupt or reduce, permit any entity subject to its 
control to interrupt or reduce, or require any entity 
subject to its jurisdiaion 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. his judgement the dispute concerns transit that is or 
has been the subject of the dispute resolution 
procedures set out in subparagraphs (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 conciliators. 
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. 8. Nothing in this Article shall derogate from a 
Contracting Party's rights and obligations under inter­
national 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 
is, however, obliged to comply with paragraph 4. 
10. For the purposes of this Article: 
4 (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 recomrrrend 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 shall specify until the dispute is resolved. 
(d) The Contracting Parties undertake to observe and 
ensure that the entities under their control or juris­
diction observe any interim decision under 
subparagraph (c) on tariffs, terms and conditions for 
12 months following the conciliator's decision or 
until resolution of the dispute, whichever is earlier. 
(e) Notwithstanding subparagraph (b) the Secretary-
General may elect not to appoint a conciliator if in (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 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 orig­
inating 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 notifi­
cation 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 notification. 
(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. 
No L 380/30 Official Journal of the European Communities 31. 12. 94 
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. 
2. Accordingly, to the extent necessary to give effect 
to paragraph 1 the Contracting Parties shall eliminate 
existing and create no new obstacles to the 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 no1 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 shall make such facilities available, 
consistent with the objectives, constraints and criteria of 
such programmes (including any 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 Parties. ,* 
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 service supplier; or 
(ii) to ensure the integrity and stability of its 
financial system and capital markets. 
PART III 
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 obli-
31. 12. 94 Official Journal of the European Communities No L 380/31 
gâtions. Each Contracting Party shall observe any obli­
gations 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. tenance, use, enjoyment or disposal, treatment nô 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. 
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 devel­
opment, 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. 
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, the treatment 
described in paragraph 3. That treaty shall be open for 
signature by the States and Regional Economic Inte­
gration 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. 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 
'^P 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 Contracung Party may, as regards the making 
of investments in its area, at any time declare 
voluntarily to the Charier 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. (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 period­
ically. 
In respect of subparagraph (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 subparagraph (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 paragraphs 3 and 7 
shall not apply to the protection of intellectual property; 
instead, the treatment shall be as specified in the corre­
sponding provisions of the applicable international 
agreements for the protection of intellectual property 
rights to which the respective Contracting Parties are 
parties. 
7. Each Contracting Party shall accord to investments 
in its area of investors of other Contracting Parties, and 
their related activities including management, main-11. For the purposes of Article 26, the application by 
a Contracting Party of a trade-related investment 
No L 380/32 Official Journal of the European Communities 31. 12. 94 
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 obli­
gation 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 respea to 
investments, investment agreements, and investment 
authorizations. 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; 
• 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 jchoice 
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. 
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, as regards restitution, indemnification, compen­
sation or other settlement, treatment 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. 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: 
(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 prin­
ciples set out in paragraph 1. 
31. 12. 94 Official Journal of the European Communities No L 380/33 
3. For the avoidance of doubt, expropriation shall 
include situations where» a Contracting Party expro­
priates 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. 
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; 5. Notwithstanding paragraph 2, Contracting Parties 
which are Sûtes that were constituent parts of the 
former Union of Soviet Socialist Republics may provide 
ih 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 subparagraph 1 (b), a Contracting 
Party may restrict the transfer of a return in kind in 
circumstances where the Contracting Party is permitted 
pursuant to Article 29 (2) (a) or the GATT and Related 
Instruments 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 
transfers of returns in kind to be effected 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. 
(d) unspent earnings and other remuneration of 
personnel engaged from abroad in connection with 
that investment; Article 15 
Subrogation 
(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 pursuant to paragraph 1 shall be effected 
without delay and (except in case of a return in kind) in 
a freely convertible currency. N 
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 judgements in civil, 
administrative and criminal adjudicatory proceedings, 
through the equitable, non-discriminatory, and good 
faith application of its laws and regulations. 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 Part/), the Host Party shall recognize: 
(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. 
No L 380/34 Official Journal of the European Communities 31. 12. 94 
3. In any proceeding pursuant to Article 26, a 
Contracting Parry 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 17 
Non-application of Part III in certain circumstances 
Each Contracting Party reserves the right to deny the 
advantages of this part to: 
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 
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. 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 estab­
lishes 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. 
PART rv 
MISCELLANEOUS PROVISIONS 
Article 18 
Sovereignty over energy resources 
1. The Contracting Parties recognize State sover­
eignty 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 devel­
opment 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, the optimalization of their recovery 
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 explo­
ration and exploitation, and to regulate the environ­
mental and safety aspects of such exploration, devel­
opment and reclamation within its area, and to 
participate in such exploration and exploitation, inter 
alia, through direct participation by the government or 
through State enterprises. 
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. 
31. 12. 94 Official Journal of the European Communities No L 380/35 
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-effective manner. In its policies 
and actions each Contracting Party shall strive to take 
precautionary measures to prevent or minimize environ­
mental degradation. The Contracting Parties agree that 
the polluter in the areas of Contracting Parties, should, 
in principle, bear the cost of pollution, including trans­
boundary 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 coop­
eration in the attainment of the environmental 
objectives of the Charter and cooperation in the field 
of international environmental standards for the 
energy cycle, taking into account differences in 
adverse effects and abatement costs between 
Contracting Parties; (g) promote and cooperate in the research, development 
and application of energy efficient and environ­
mentally sound technologies, practices and processes 
which will minimize harmful environmental impacts 
of ail 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 rights; 
(i) promote the transparent assessment at an early stage 
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 environ­
mental 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 Parties. 
2. At the request of one or more Contracting Parties, 
disputes concerning the application or interpretation of 
provisions of this Article shall, 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 
solution. 
3. For the purposes of this Article: 
(d) have particular regard to*- improving energy effi­
ciency, to developing and using renewable energy 
sources, to promoting the use of cleaner fuels and to 
employing technologies and technological means that 
reduce pollution; 
(e) promote the collection and sharing among 
Contracting Parties of information on environ­
mentally sound and economically efficient energy 
policies and cost-effective practices and. technologies; 
(f) promote public awareness of the environmental 
impacts of energy systems, of the scope for the 
prevention or abatement of their adverse environ­
mental impacts, and of the costs associated with 
various prevention or abatement measures; (a) 'energy cycle' means the entire energy chain, 
including activities related to prospecting for, explo­
ration, 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; 
No L 380/36 Official Journal of the European Communities 31. 12. 94 
(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. 
• Article 20 
Transparency 
1. Laws, regulations, judicial decisions and adminis­
trative 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 adminis­
trative 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. (a) an advantage accorded by a Contracting Party 
. pursuant to the tax provisions of any convention, 
agreement or arrangement described in subparagraph 
(7) (a) (ii); or 
(b) any taxation measure aimed at ensuring the effective 
collection of taxes, except where the measure of a 
Contracting Party arbitrarily discriminates against 
energy materials and products originating in, or 
destined for the area of another Contracting Party 
or arbitrarily restricts benefits accorded pursuant to 
Article 7 (3). 
3. Article 10 (2) and (7) 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 â Contracting Party 
pursuant to the tax provisions of any convention, 
agreement or arrangement described in subparagraph 
(7) (a) (ii) or resulting from membership of any 
Regional Economic Integration Organization; or 
(b) an/ taxation measure aimed at ensuring the effective 
collection of taxes, except where the measure 
arbitrarily discriminates against an investor of 
another Contracting Party or arbitrarily restricts 
benefits accorded under the investment provisions of 
this Treaty. 
3. Each Contracting Party shall designate one or more 
enquiry points to which requests for information about 
the abovementioned laws, regulations, judicial decisions 
and administrative rulings may be addressed and shall 
communicate promptly such designation to the Secre­
tariat which shall make it available on request. 4. Article 29 (2) to (6) shall apply to taxation 
measures other than those on income or on capital. 
5. (a) Article 13 shall apply to taxes. 
Article 21 
Taxation 
1. Except as otherwise provided in this Article, 
nothing in this Treaty shall create rights or impose obli­
gations with respect to taxation measures of the 
Contracting Parties. In the event of any inconsistency 
between this Article and any other provision of the 
Treaty, this Article shall prevail to the extent of the 
inconsistency. 
2. Article 7 (3) shall apply to taxation measures other 
than those on income or on capital, except that such 
provision shall not apply to: (b) Whenever an issue arises pursuant to Article 13, 
to the extent it pertains to whether a tax 
constitutes an expropriation or whether a tax 
alleged to constitute an expropriation is discrimi­
natory, 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 auth­
orities; 
31. 12. 94 Official Journal of the European Communities No L 380/37 
(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-discrimi­
nation 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 
pursuant to the Model Tax Convention on 
Income and Capital of the Organization for 
Economic Cooperation and Development; 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 Parties or, when no 
such agreement is in force, the minister or ministry 
responsible for taxes or, their authorized represen­
tatives. 
(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 conclusion's arrived at 
within the six-month period prescribed in 
subparagraph (b) (ii) by the competent tax 
authorities regarding whether the tax is 
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 
subparagraph (b) (ii), lead «to a delay of 
proceedings pursuant to Articles 26 and 27. 
6. 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. (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 pursuant to Part III 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 pursuant to other provisions of this Treaty. 
7. For the purposes of this Article: 
(a) The term 'taxation 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 of 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 3. Each Contracting Party shall ensure that if it estab­
lishes or maintains an 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 obli­
gations pursuant to 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 
pursuant to this Treaty. 
5. For the purposes of this Article, 'entity' includes 
any enterprise, agency or other organization or indi­
vidual. 
No L 380/38 Official Journal of the European Communities 31. 12. 94 
Article 23 
Observance by sub-national authorities individuals or groups or their investments and 
notifjed to the Secretariat as such, provided thai 
such measure: 
1. Each Contracting Party is fully responsible 
pursuant to this Treaty for the observance of all 
provisions of the Treaty, and shall take such reasonable 
measures as may be available to it to ensure such 
observance by regional and local governments and auth­
orities within 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 the 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 subparagraph (i), Part III of the 
Treaty; 
shall not preclude any Contracting Party from adopting 
or enforcing any measure: 
(i) necessary to protect human, animal or plant life or 
health; (A) has no significant impact on that Contracting 
Party's economy; and 
(B) does not discriminate between investors of an) 
other Contracting Party and investors of thai 
Contracting Party not included among those 
for whom the measure is intended; 
provided that no such measure shall constitute s 
disguised restriction on economic activity in the energy 
sector, or arbitrary or unjustifiable discriminatior 
between Contracting Parties or between investors oi 
other interested persons of Contracting Parties. Such 
measures shall be duly motivated and shall not nullify oi 
impair any benefit one or more other Contracting Partie; 
may reasonably expect pursuant to this Treaty to ar 
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 tc 
prevent any Contraaing Party from taking any measure 
which it considers necessary: 
(a) for the protection of its essential security interest 
including those: 
(i) relating to the supply of energy materials anc 
products to a military establishment; or 
(ii) taken in time of war, armed conflict or othe 
emergency in international relations; 
(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; 
(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; (b) relating to the implementation of national policie 
respecting the non-proliferation of nuclear weapon 
or other nuclear explosive devices or needed to fulfi 
its obligations pursuant to the Treaty on th> 
Non-Proliferation of Nuclear Weapons, the Nuclea 
Suppliers Guidelines, and other international nuclea 
non-proliferation obligations or understandings; or 
(c) for the maintenance of public order. 
Such measure shall not constitute a disguised restrictio 
on transit. 
(iii) designed to benefit investors who are aboriginal 
people or socially or economically disadvantaged 4. The provisions of this Treaty which accord mo: 
favoured nation treatment shall not oblige an 
31. 12. 94 Official Journal of the European Communities No L 380/39 
Contracting Parry to extend to the investors of any other 
Contracting Party any preferential treatment: 
(a) resulting from its membership of a free-trade area or 
customs union; or 
(b) which is accorded by a bilateral or multilateral 
agreement concerning economic cooperation 
between Sûtes 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. 
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 and Related Instruments according to Article 29. 
PART V 
DISPUTE SETTLEMENT 
Article 26 
Settlement of disputes between an investor and a 
Contracting Party (b) (i) The Contracting Parties listed in Annex ID 
do not give such unconditional consent where 
the investor .has previously submitted the 
dispute under subparagraph (2) (a) or (b). 
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 settled 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 resolution: 
(a) to the courts or administrative tribunals of the 
Contracting Party party to the dispute; (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 ratifi­
cation, 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 LA does 
not give such unconditional consent with 
respect to a dispute arising under the last 
sentence of Article 10 (1). 
(b) in accordance with any applicable, previously agreed 
dispute settlement procedure; or 
(c) in accordance with the following paragraphs of this 
Article. 4. In the event that an investor chooses to submit the 
dispute for resolution under subparagraph (2) (c), the 
investor shall further provide its consent in writing for 
the dispute to be submitted to: 
3. (a) Subject only to subparagraphs (b) and (c), each 
Contracting Party hereby gives its unconditional 
consent to the submission of a dispute to inter­
national arbitration or conciliation in accordance 
with the provisions of this Article. (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 
No L 380/40 Official Journal of the European Communities 31. 12. 94 
Convention'), if the Contracting Party of the 
investor and the Contraaing 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 subparagraph (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; 
(b) a sole arbitrator or ad hoc arbitration tribunal estab­
lished under the Arbitration Rules of the United 
Nations Commission on International Trade Law 
(hereinafter referred to as 'Uncitral'); or 
(c) an arbitra] proceeding under the Arbitration Institute 
of the Stockholm Chamber of Commerce. Treaty and applicable rules and principles of inter­
national 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 consent in writing 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'. 
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. 
5. (a) The consent given in paragraph 3 together with, 
the written consent of the investor given pursuant 
to paragraph 4 shall be considered to satisfy the 
requirement for: Article 27 
Settlement of disputes between Contracting Parties 
(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 Yorl$ Convention'); and 
(iii) 'the parties to a contract (to) have agreed in 
writing' for the purposes of Article 1 of the 
Uncitral Arbitration Rules. 
(b) Any arbitration pursuant to 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 I of that Convention. 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 except as concerns the application or interpretation 
of Article 6 or Article 19 or, for Contracting Parties 
listed in Annex LA, 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 pursuant to 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. 
6. A tribunal established pursuant to paragraph 4 shall 
decide the issues in dispute in accordance with this (b) Within 60 days of the receipt of the written notice 
referred to in paragraph 2, the other Contracting 
31. 12. 94 Official Journal of the European Communities No L 380/41 
•9 Party parry to the dispute shall appoint one member. 
If the appointment is not made within the time limit 
prescribed, the Contracting Party 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 
subparagraph (d). 
(c) A third member, who may not be a. national or 
citizen of a Contraaing 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 subparagraph (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 Secrecary-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 
subparagraphs (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. (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 remun­
eration 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 Arbitration. 
(1) A copy of thé award shall be deposited with the 
Secretariat which shall make it generally available. 
Article 28 
Non-application of Article 27 to certain disputes 
A dispute between Contracting Parties with respea to 
the application or interpretation of Article 5 or 29 shall 
not be settled pursuant to Article 27 unless the 
Contracting Parties parties to the dispute so agree. 
PART VI 
TRANSITIONAL PROVISIONS 
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 
subparagraphs (b) and (c) and to the exceptions 
and rules provided for in Annex G, by the 
provisions of GATT 1947 and Related 
Instruments, as applied on 1 March 1994 and 
practised with regard to energy materials and 
products by parties to GATT 1947 among them-
No L 380/42 Official Journal of the European Communities 31. 12. 94 
selves, as if all Contracting Parties were parties to 
GATT 1947 and 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, subjea to the provisions of Annex 
TFU, by an agreement between two or more such 
Sûtes, until 1 December 1999 or the admission of 
that Contraaing Party to the GATT, whichever is 
the earlier. 
(c) As concerns trade between any two parties to the 
GATT, subparagraph (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 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 exportation: with the applicable provisions of the GATT other 
than those, provisions of GATT 1947 and Related 
Instruments listed in Annex G and the corresponding 
provisions of GATT 1994 and Related Instruments; 
or 
(b) it has, to the fullest extent practicable under its legis­
lative procedures, notified the Secretariat of its 
proposal for such an increase, given other interested 
Contraaing Parties reasonable opportunity for 
consultation with respect to its proposal, and 
accorded consideration to any representations from 
such Contraaing Parties. 
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 shall apply to disputes regarding 
compliance with provisions applicable to trade pursuant 
to 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) 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; (a) has been notified in accordance with and meets the 
other requirements of subparagraph 2 (b) and Annex 
TFU; or 
(b) establishes a free-trade area or a customs union as 
described in Article XXIV of 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 subparagraph 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, such action is not inconsistent Article 30 
Developments in international trading arrangements 
Contracting Parties undertake that in the light 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. 
31. 12. 94 Official Journal of the European Communities No L 380/43 
ft 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 (2) and (5) 
Article 7 (4) 
Article 9 (1) 
Article 10 (7) — specific measures 
Article 14 (1) (d) — related only to transfer of unspent 
earnings 
Article 20 (3) 
Article 22 (1) and (3) 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 full implementation of this Treaty, 
or to deal with any problem notified pursuant to 
subparagraph (b) as well as to promote other 
necessary market-oriented reforms and modern­
ization of its energy sector; 
(d) of any possible need to make a request of the kind 
referred to in paragraph 3. 
The Secretariat shall: 
2. Other Contracting Parties shall assist any 
Contracting Party which has suspended full compliance 
pursuant to 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 pursuant to subparagraph 4 (c) including, where 
appropriate, through bilateral or multilateral 
arrangements. 
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 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 pursuant to paragraph 1 undertake to 
comply fully with the relevant obligations by Î July 2001. 
Should a Contracting Party find it necessary, due to 
exceptional circumstances, to request that the period of (a) circulate to all Contracting Parties the notifications 
referred to in paragraph 4; 
(b) circulate and aaively promote, relying where appro­
priate on arrangements existing within other inter­
national organizations, the matching of needs for 
and offers of technical assistance referred to in 
paragraph 2 and subparagraph 4 (c); 
(c) circulate to all Contraaing Parties at the end of each 
six-month period a summary of any notifications 
made pursuant to subparagraph 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 
paragraph 2 and subparagraph 4 (c). In the course of 
that review it may decide to take appropriate action. 
No L 380/44 Official Journal of the European Communities 31. 12. 94 
PART VII 
STRUCTURE AND INSTITUTIONS 
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 prin­
ciples of the Charter. 
2. Any signatory to the Charter may participate in 
such negotiation. 
3. A State or Regional Economic Integration Organ­
ization 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 paragraph 3 and subparagraph 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 subjea 
to any provisions of the Protocol which are auth­
orized by subparagraph (b). 
(b) A Protocol which provides for decisions 
thereunder to be taken by the Charter Conference 
may, subject to. subparagraph (a), provide with 
respea to sucfr-decisions : 
(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 
Energy Charter Conference 
1. The Contracting Parties shall meet periodically in 
the Energy Charter Conference (referred to herein 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 Secreuriat, 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 coordination 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 Secretariat; 
(e) consider and approve the annual accounts and 
budget of the Secreuriat; 
(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 Secreuriat; 
(g) encourage cooperative 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; 
0) decide on accessions to this Treaty; 
31. 12. 94 OfficLI Journal of the European Communities No L 380/45 
(k) authorize the negotiation of and consider and 
approve or adopt association agreements; 
(1) consider and adopt texts of amendments to this 
Treaty; 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. 
& (m) consider and approve modifications of and technical 
changes to the Annexes to this Treaty; 
(n) appoint the Secreury-General and uke all decisions 
necessary for the esublishment and functioning of 
the Secreuriat 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 cooperate 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 esublish 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. 
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 the 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 
Secreury-General and such suff as are the minimum 
consistent with efficient performance. 5. The Secreuriat may enter into such administrative 
and contractual arrangements as may be required for the 
effective discharge of its functions. 
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 pursuant to 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 pursuant to Annex D, paragraph 7. 
The Contracting Parties shall make every effort to reach 
agreement by consensus on any other matter requiring 
their decision pursuant to this Treaty. If agreement 
cannot be reached by consensus, paragraphs 2 to 5 shall 
apply. 
2. Decisions on budgeury matters referred to in 
Article 34 (3) (e) shall be uken by a qualified majority of 
Contracting Parties whose assessed contributions as 
specified in Annex B represent, in combination, at least 
three-fourths of the toul assessed contributions specified 
therein. 
2. The Secretary-General shall be appointed by the 
Charter Conference. The first such appointment shall be 
for a maximum period of five years. 
3. In the performance of its duties the Secreuriat shall 
be responsible to and report to the Charter Conference. 3. Decisions on matters referred to in Article 34 (7) 
shall be taken by a three-fourths majority of the 
Contracting Parties. 
4. Except in cases specified in subparagraphs 1 (a) to 
(f), paragraphs 2 and 3, and subject to paragraph 6, 
decisions provided for in this Treaty shall be uken by a 
No L 380/46 Official Journal of the European Communities 31. 12. 94 
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 Article, '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 Sûtes which are Contracting 
Parties io this Treaty; provided that such an Organ­
ization shall not exercise its right to vote if its Member 
Sûtes exercise theirs, and vice versa. 
8. In the event of persistent arrears in a Contracting 
Party's discharge of financial obligations pursuant to 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 
represenution 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 Secreuriat. 
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 conuin 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 Secre­
tariat for the purposes of paragraph 3. 
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 Sûtes and 
Regional Economic Integration Organizations which 
have signed the Charter. 
--Article 39 
Ratification, acceptance or approval 
This Treaty shall be subject to ratification, accepunce or 
approval by signatories. Instruments of ratification, 
accepunce or approval shall be deposited with the 
Depositary. 
Article 40 
Application to territories deposited with the Depositary, declare that the Treaty 
shall be binding upon it with respect to all the territories 
for the international relations of which it is responsible, 
or to one or more of them. Such declaration shall uke 
effect at the time the Treaty enters into force for that 
Contracting Party. 
2. Any Contracting Party may at a later date, by a 
declaration deposited with the Deposiury, 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 90th day following the 
receipt by the Deposiury of such declaration. 
3. Any declaration made under the two preceding 
paragraphs may, in respea of any territory specified in 
such declaration, be withdrawn by a notification to the 
Depositary. The withdrawal shall, subject to the applica­
bility of Article 47 (3), become effective upon the expiry 
of one year after the date of receipt of such notification 
by the Depositary. 
1. Any Sute or Regional Economic Intégration 
Organization may at the time of signature, ratification, 
acceptance, approval or accession, by a declaration 4. The definition of 'area' in Article 1 (10) shall be 
construed having regard to any declaration deposited 
pursuant to this Article. 
31. 12. 94 Officiai Journal of the European Communities No L 380/47 
Article 41 
Accession particular circumstances of the association, and in each 
case shall be set out in the association agreement. 
This Treaty shall be open for accession, from the date on 
which the Treaty is closed for signature, by Sûtes 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 
Amendments Article 44 
Entry into force 
1. This Treaty shall enter into force on the 90th day 
after the date of deposit of the 30th instrument of ratifi­
cation, accepunce or approval thereof, or of accession 
thereto, by a Sute or Regional Economic Integration 
Organization which is a signatory to the Charter as of 
16 June 1995. 
(I 
Û 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 
Secreuriat at least three months before the date on 
which it is proposed for adoption by the Charter 
Conference. 
3. Amendments to this Treaty, texts of which have 
been adopted by the Charter Conference, shall be 
communicated by the Secreuriat to the Depositary 
which shall submit them to all Contracting Parties for 
ratification, accepunce or approval. 
4. Instruments of ratification, accepunce or approval 
of amendments to this Treaty shall be deposited with the 
Deposiury. Amendments shall enter into force between 
Contracting Parties having ratified, accepted or approved 
them on the 90th day after deposit with the Deposiury 
of instruments of ratification, accepunce or approval by 
at least three-fourths of the Contracting Parties. 
Thereafter the amendments shall enter into force for any 
other Contraaing Party on the 90th day after that 
Contraaing Party deposits its instrument of ratification, 
accepunce or approval of the amendments. 
Article 43 
Association agreements 
1. The Charter Conference may authorize the 
negotiation of association agreements with Sûtes 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 inter­
national organization shall be appropriate to the 2. For each State or Regional Economic Integration 
Organization which ratifies, accepts or approves this 
Treaty or accedes thereto after the deposit of the 30th 
instrument of ratification, accepunce or approval, it shall 
enter into force on the 90th day after the date of deposit 
by such State or Regional Economic Integration Organ­
ization of its instrument of ratification, accepunce, 
approval or accession. 
3. For the purposes of paragraph 1, any instrument 
deposited by a Regional Economic Integration Organ­
ization shall not be counted as additional to those 
deposited by Member States of such Organization. 
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) Notwithsunding paragraph 1 any signatory may, 
when signing, deliver to the Depositary a 
declaration that it is not able to accept provisional 
application. The obligation contained in 
paragraph 1 shall not apply to a signatory making 
such a declaration. Any such signatory may nt any 
time withdraw that declaration by written notifi­
cation to the Depositary. 
(b) Neither a signatory which makes a declaration in 
accordance with subparagraph (a) nor investors of 
that signatory may claim the benefits of 
provisional application pursuant to paragraph 1. 
(c) Notwithsunding subparagraph (a), any signatory 
making a declaration referred to in subparagraph 
(a) shall apply Pan VII provisionally pending the 
entry into force of the Treaty for such signatory 
in accordance with Article 44, to the extent that 
No L 380/48 Official Journal of the European Communities 31. 12. 94 
such provisional application is not inconsistent 
with its laws or regulations. 
3. (a) Any signatory may terminate its provisional 
application of this Treaty by written notification 
to the Deposiury of its intention not to become a 
Contraaing Party to the 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 notifi­
cation is received by the Deposiury. 
(b) In the event that a signatory terminates 
provisional application pursuant to subparagraph 
(a), the obligation of the signatory pursuant to 
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 20 years 
following the effective date of termination, except 
as otherwise provided in subparagraph (c). 
(c) Subparagraph (b) shall not ipply to any signatory 
listed in Annex PA. A signatory shall be removed 
from the list in Annex PA effective upon delivery 
to the Deposiury of its 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 Secreuriat referred to in 
paragraph 5 not later than 180 days after the opening 
date for signature of the Treaty as specified in Article 38. 
5. The functions of the Secreuriat 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 establishment of a -Secreuriat. 
6. The signatories shall, in i accordance with and 
subject to the provisions of paragraph 1 or subparagraph 
2 (c) as appropriate, contribute to the costs of the 
provisional Secreuriat as if the signatories were 
Contracting Parties pursuant to 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 Organ­
ization which, prior to this Treaty's entry into force, 
accedes to the Treaty in accordance with Article 41 .shall, 
pending the Treaty's entry into force, have the rights and 
assume the obligations of a signatory pursuant to this 
Article. Article 46 
Reservations 
No reservations may be made to this Treaty. 
Article 47 
Withdrawal 
1. At any time after five years from the date on which 
this Treaty has entered into force for a Contraaing 
Party, that Contraaing Party may give written notifi­
cation to the Deposiury of its withdrawal from the 
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 the 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 
Sutus of Annexes and Decisions 
The Annexes to this Treaty and the Decisions set out in 
Annex 2 to the F;nal Act of the European Energy 
Charter Conference signed at Lisbon on 17 December 
1994 are integral parts of the Treaty. 
Article 49 
Deposiury 
The Government of the Portuguese Republic shall be the 
Depositary of this Treaty. 
Article 50 
Authentic texts 
Jn witness whereof the undersigned, being duly auth­
orized 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-
Republic. 
<\ 31.12.94 Official Journal of the European Communities No L 380/49 
Done at Lisbon on the seventeenth day of December in the year one thousand nine bundred 
and ninety-four. 
Fait à Lisbonne, le dix-sept décembre mil neuf cent quatre-vingt-quatorze. 
Geschehen zu Lissabon am siebzehnten Dezember neunzehnhundertvierundneunzig. 
Fatto a Lisbona il diciassettesimo giorno del mese di dicembre dell'anno millenovecentonovanta-
quattro. 
CoBepineHO B Jlncca6oue D ceuHonuaTUfi neHb neicaôpfl OXIHS THcn^a 
ûeBflTbcoT iieBniiocTo MeTBepToro roue. 
Hecho en Lisboa, el diecisiete de diciembre de mil novecientos noventa y cuatro. 
Udfxrdiget i Lissabon, den syttende december nittenhundrede og fireoghalvfems. 
Eytve crtTi Atactpôva, attç ÔéKa eTtxà AeKEjtpptoo tou éxooç x&ia evtaKÔata evev^vxa xéaaepa. 
/•$• Gedaan te Lissabon, de zeventiende december negentienhonderd vierennegentig. 
Feito em Lisboa, aos dezassete de Dezembro de mil novecentbs e noventa e quatro. 
# 
No L 380/50 Official Journal of the European Communities 31.12. 94 
Për Republikën e Shqipërisë 
^lujinuinujOp 3uiûpumjbimupjUJÛ htuiiiup 
For Australia 
Fiir die Republik osterreich 
31.12. 94 Official Journal of the European Communities No L 380/51 
A3ep6aflnaH aMHH<jaH 
S> «r 
Pour le royaume de Belgique 
Voor het Koninkrijk België 
Fur das Kônigreich Belgien 
& 
Cette signature engage également la Communauté française de Belgique, la Communauté flamande, 
la Communauté germanophone de Belgique, la Région wallonne, la Région flamande et la région 
de Bruxelles-Capitale. 
Deze handtekening bindt eveneens de Vlaamse Gemeenschap, de Franse Gemeenschap van België, 
de Duitstalige Gemeenschap van België, het Waals Gewest en net Brussels Hoofdstedelijk Gewest. 
Dièse Unterschrift bindet ebenso die Flâmische Gemeinschaft, die Franzôsische Gemeinschaft Belgi­
ens, die Deutschsprachige Gemeinschaft Belgiens, die Flâmische Region, die Wallonische F.egion 
und die Region Briissel-Hauptstadt. 
An i«fl Pscnyôjiixi 5enapyct 
7/ m 
3a PenyÔJiKKS 5-bJirapna 
HOL380/52 Official Journal of the European Communities 
For Canada 
Pour le Canada 
za Republiku Hrvatsku 
For the Republic of Cyprus 
LOVJLCV^ 
ZaCeskou Republiku 31.12. 94 
31.12. 94 Official Journal of the European Communities No L 380/53 
For Kongeriget Danmark 
CÂo^-^^^^ 
» Eesti Vabariigi nimel 
Por las Comunidades Europeas 
For De Europariske Faelîesskaber 
Fiir die Europaischen Gemeinschaften 
Tta xtç EupcùnatKéç Kotvôrnxeç 
For the European Communities 
Pour les Communautés européennes 
Per le Comunità europee 
Voor de Europese Gemeen$chappen 
Pelas Comunidades Europeias 
\k éku4^ 
Suomen tasavallan puolesta 
- < 
h ^_ 
^7 
No L 380/54 Official Journal of the European Communities 31.12.94 
Pour la République française 
Fur die Bundesrepublik Deutschland 
Ha TT|V FAXTIVIKV| AtinoKpaxla 
I 31.12.94 Official Journal of the European Communities No L 380/55 
A Magyar Koztarsasag nevében 
Fyrir hônd Lyôveldisins islands 
(9 Thar cheann na hÉireann 
For Ireland 
Per la Repubblica italiana 
m 
No L 380/56 Official.Journal of the European Communities 31.12.94 
B*0BfO/h*lc 
KaaaxcTan PecnyÔJiMxacuuuii BTHBBH 
Kupru3 PecnyÔJiHxacu y^yti 
Latvijas Republikas varda 
31.12.94 Official Journal of the European Communities No L 380/57 
Fiir das Furstentum Liechtenstein 
JW 
Lietuvos Respublikos vardu 
(•} Pour le grand-duché de Luxembourg 
.1 For the Republic of Malta 
No L 380/58 Official Journal of the European Communities 31.12. 94 
Pentru Republica Moldova 
rfo * 
Voor het Koninkrijk der Nederlanden 
^ ^\ 
For Kongeriket Norge 
Za Rzeczpospolita Polska 
-jA/'^-KèA^ s 
It 
31.12.94 Official Journal of the European Communities No L 380/59 
Pela Republica Portuguesa 
v^' 
•* Pentru Romania 
1 t 
3a POCCHP.CKVD $eflepaiiHD 
Za Slovensku republiku 
V 
No L 380/60 Official Journal of the European Communities 31. 12. 94 
Za Republiko Slovenijo 
7^9%lS c 
Por el Reino de Espana 
For Konungariket Sverige 
X I 
C/^AA_ 
Fiir die Schweizerische Eidgenossenschaft 
Pour la Confédération suisse 
Per la Confederazione svizzera 
}#l a.t^-o<JYl 
31.12. 94 Official Journal of the European Communities No L 380/61 
A3 IIOUM Tn7MXHCTOH 
Turkiye Cumhuriyeti adina 
TypKueHMcraH XeKywcTHiiHU ouunaau 
3a yxpaïiiy 
No L 380/62 Official Journal of the European Communities 31.12. 94 
For the United Kingdom of Great Britain and Northern Ireland 
.2 •v.- /-'%- tS'^L. 
For the United States of America 
îfaoeKMCTon Pecny6nnKucn XyicyuaTH iiounaon 
31. 12. 94 Official Journal of the European Communities No L 380/63 
ANNEXES TO THE ENERGY CHARTER TREATY 
TABLE OF CONTENTS 
1. Annex EM 
Energy materials and products 
(In accordance with Article 1 (4)) Page 
65 
2. Annex NI 
Non-applicable energy materials and products for definition of 'economic activity in the energy 
sector' 
(In accordance with Article 1 (5)) 66 
3 3. Annex TRM 
Notification and phase-out (TRIMs) 
(In accordance with Article 5 (4)) 66 
4. Annex N 
List of Contracung Parties requiring at least three separate areas to be involved in a transit 
(In accordance with Article 7 (10) (a)) 67 
5. Annex VC 
List of Contracting Parties which have made volunury binding commitments in respea of 
Article 10 (3) 
(In accordance with Article 10 (6)) 67 
6. Annex ID 
List of Contracting Parties not allowing an investor to resubmit the same dispute to inter­
national arbitration at a later stage pursuant to Article 26 
(In accordance with Article 26 (3) (b) (i)) 68 
•% 7. Annex IA 
List of Contracting Parties not allowing an investor or Contracting Party to submit a dispute 
concerning the last sentence of Article 10 (1) to international arbiuation 
(In accordance with Articles 26 (3) (c) and 27 (2)) 68 
8. Annex P 
Special sub-national dispute procedure 
(In accordance with Article 27 (3) (i)) 68 
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)) 70 
10. Annex TFU 
Provisions regarding trade agreements between States which were constituent parts of the 
Former Union of Soviet Socialist Republics 
(In accordance with Article 29 (2) (b)) 73 
11. Annex D 
Interim provisions for trade dispute settlement 
(In accordance with Article 29 (7)) 74 
No L 380/64 Official Journal of the European Communities 31. 12. 94 
\ p>gc 
12. Annex B 
Formula for allocating charter costs ' *" 
(In accordance with Article 37 (3)) 78 
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)) 78 
14. Annex T 
Contracting Parties' transitional measures 
(In accordance with Article 32 (1)) 79 
f 31. 12. 94 Official Journal of the European Communities No L 380/65 
& •.* 
.1 1. Annex EM 
ENERGY MATERIALS AND PRODUCTS 
(In accordance with Article 1 (4)) 
Nuclear energy 
2612 Uranium or thorium ores and concentrates. 
2612 10 Uranium ores and concentrates. 
2612 20 Thorium "ores and concentrates. 
2844 Radioactive chemical elements and radioactive isotopes (including the fissile or fertile chemical 
elements and isotopes) and their compounds; mixtures and residues containing these products. 
2844 10 Natural uranium and its compounds. 
2844 20 Uranium enriched in U235 and its compounds; plutonium and its compounds. 
2844 30 Uranium depleted in U235 and its compounds; thorium and its compounds. 
2844 40 Radioactive elements and isotopes and radioactive compounds other than 2844 10, 2844 20 or 
2844 30. 
2844 50 Spent (irradiated) fuel elements (cartridges) of nuclear reactors. 
2845 10 Heavy water (deuterium oxide). 
Coal, natural gas, petroleum and petroleum products, electrical energy 
2701 Coal, briquettes, ovoids and similar solid fuels manufactured from coal. 
2702 Lignite, whether or not agglomerated excluding jet. 
2703 Peat (including peat litter), whether or not agglomerated. 
2704 Coke and semi-coke of coal, of lignite or of peat, whether or not agglomerated; retort carbon. 
2705 Coal gas, water gas, producer gas 'nd similar gases, other than petroleum gases and other 
gaseous hydrocarbons. 
2706 Tar distilled from coal, from lignite or from peat, and other mineral tars, whether or not 
dehydrated or partially distilled, including reconstituted tars. 
2707 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.,^be,nzole, toluole, xylole, naphtalene, other aromatic hydrocarbon mixtures, phenols, 
creosote oils and others). 
2708 Pitch and pitch coke, obtained from coal tar or from other mineral tars. 
2709 Petroleum oils and oils obtained from bituminous minerals, crude. 
2710 Petroleum oils and oils obtained from bituminous minerals, other than crude. 
2711 Petroleum gases and other gaseous hydrocarbons 
Liquified: 
— natural gas, 
— propane, 
— butanes, 
— ethylene, propylene, butylène and butadiene (2711 14), 
— other. 
No L 380/66 Official Journal of the European Communities 31. 12. 94 
In gaseous state: 
— natural gas, 
— other. 
2713 Petroleum coke, petroleum bitumen and other residues of petroleum oils or of oils obtained 
from bituminous minerals. 
2714 Bitumen and asphalt, natural; bituminous or oil shale and tar sands; asphaltites and asphaltic 
rocks. 
2715 Bituminous mixtures based on natural asphalt, on natural bitumen, on petroleum bitumen, on 
mineral tar or oh mineral tar pitch (e.g., bituminous mastics, cut-backs). 
2716 Electrical energy. 
Other energy 
4401 10 Fuel wood, in logs, in billets, in twigs, in faggots or in similar forms. 
4402 Charcoal (including charcoal from shells or nuts), whether or not agglomerated. 
2. Annex NI 
NON-APPLICABLE ENERGY MATERIALS AND PRODUCTS FOR DEFINITION OF 
'ECONOMIC ACTIVITY IN THE ENERGY SECTOR' 
(In accordance with Article 1 (5)) 
2707 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). 
4401 10 Fuel wood, in logs, in billets, in twigs, in faggots or in similar forms. 
4402 Charcoal (including charcoal from shells or nuts), whether or not agglomerated. 
3. Annex TRM 
NOTIFICATION AND PHASE-OUT (TRIMs) 
(In accordance with Article 5 (4)) 
1. Each Contracting Pany shall notify to the Secretariat all 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 Pany is a pany to the GATT; or 
(b) 12 months after the entry into force of this Treaty if the Contracting Pany is not a pany to the 
GATT. 
Such trade-related investment measures of general or specific application shall be notified along with 
their principal features. 
I 
Jj |i 31. 12. 94 Official Journal of the European Communities No L 380/67 
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 disclosed. 
3. Each Contraaing Parry 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 Contraaing 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 pursuant to 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. 
5. Notwithstanding the provisions of paragraph 4, a Contracting Party, in order not to disadvantage estab­
lished enterprises which are subject to a trade-related investment measure notified pursuant to 
paragraph 1, may apply during the phase-out period the same trade-related investment measure to a 
new investment where: 
2> (a) the products of such investment are like 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 Organ-
4. Annex N 
LIST OF CONTRACTING PARTIES REQUIRING AT LEAST THREE SEPARATE AREAS TO BE 
INVOLVED IN A TRANSIT 
^> , (In accordance with Article 7 (10) (a)) 
•1. Canada and United Sûtes of America 
5. Annex VC 
LIST OF CONTRACTING PARTIES WHICH HAVE MADE VOLUNTARY BINDING 
COMMITMENTS IN RESPECT OF ARTICLE 10 (3) 
(In accordance with Anicle 10 (6)) 
No L 380/68 Official Journal of the European Communities 31. 12. 94 
6. Annex ID 
LIST OF CONTRACTING PARTIES NOT ALLOWING AN INVESTOR TO RESUBMIT THE 
SAME DISPUTE TO INTERNATIONAL ARBITRATION AT A'LATER STAGE PURSUANT TO 
ARTICLE 26 
1. Australia 
2. Azerbaijan 
3. Bulgaria 
4. Canada 
5. Croatia 
6. Cyprus 
7. The Czech Republic 
8. European Communities 
9. Finland 
10. Greece 
11. Hungary 
12. Ireland (In accordance with Article 26 (3) (b) (i)) 
13. Italy 
14. Japan 
15. Kazakhsun 
16. Norway 
17. Poland 
18. Portugal 
19. Romania 
20. The Russian Federation 
21. Slovenia 
22. Spain 
23. Sweden 
24. United Sûtes of America 
7. Annex IA 
LIST OF CONTRACTING PARTIES NOT ALLOWING AN INVESTOR OR CONTRACTING 
PARTY TO SUBMIT A DISPUTE CONCERNING THE LAST SENTENCE OF ARTICLE 10 (1) TO 
INTERNATIONAL ARBITRATION 
1. Australia 
2. Canada 
3. Hungary 
4. Norway (In accordance with Articles 26 (3) (c) and 27 (2)) 
8. Annex P 
SPECIAL SUB-NATIONAL DISPUTE PROCEDURE 
(In accordance with Article 27 (3) (i)) 
PART I 
1. Canada 
2. Australia 
31. 12. 94 Official Journal of the European Communities No L 380/69 
PARTn 
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 Party") «.not in conformity 
with a provision of this Treaty, the Responsible Parry shall take such reasonable measures as may be 
available to it to ensure observance of the Treaty in respect of the measure. 
2. The Responsible Party shall, within 30 days from the date the award is made, provide to the Secreuriat 
written notice of its intentions as to ensuring observance of the Treaty in respect of the measure. The 
Secreuriat shall present the notification to the Charter Conference at the earliest practicable oppor­
tunity, 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 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 Party shall propose a reasonable period 
for approval by the Charter Conference. 
3. Where the Responsible Party fails, within the reasonable period of time, to ensure observance in respect 
) ^ of the measure, it shall at the request of the other Contracting Party party to the dispute (hereinafter 
referred to as the 'Injured Party*) endeavour to agree with the Injured Party on appropriate compen­
sation 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 Party, the 
Injured Party may with the authorization of the Charter Conference suspend such of its obligations to 
the Responsible 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 Party shall apply the following principles and 
procedures: 
(a) The Injured Parry 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 Parry considers'that it is not practicable or effective to suspend obligations with 
respect to the same part, of the Treaty, it may seek to suspend obligations in other parts of the 
Treaty. If the Injured Party decides to request authorization to suspend obligations under this 
subparagraph, it shall sute the reasons therefor in its request to the Charter Conference for author-
On written request of the Responsible Party, delivered to the Injured 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 Party is excessive, and if so, to what extent. If the tribunal cannot be reconstituted, such 
determination shall be made by one or more arbitrators appointed by the Secreury-General. Determi­
nations pursuant to this paragraph shall be completed within 60 days of the request to the tribunal or 
the appointment by the Secreury-General. Obligations shall not be suspended pending the determi­
nation, which shall be final and binding. 
7. In suspending any obligations to a Responsible Party, an Injured Party shall make every effort not to 
affect adversely the rights under the Treaty of any other Contracting Party. 
No L 380/70 Official Journal of the European Communities 31. 12. 94 
9. Annex G 
EXCEPTIONS AND RULES GOVERNING THE APPUCATION OF-THE PROVISIONS OF THE 
GATT AND RELATED INSTRUMENTS 
(In accordance with Article 29 (2) (a)) 
1. The following provisions of GATT 1947 and Related Instruments shall not be applicable under Artide 
29 (2) (a): 
(a) General Agreement oa 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 
XVIII Governmental assistance to economic development 
XXII Consulution 
XXIII Nullification or impairment 
XXV Joint action by the Contracung Parties 
XXVI Accepunce. Entry into force and registration 
XXVII Withholding or withdrawal of concessions 
XXVIII Modification of Schedules 
XXVIIIa Tariff negotiations 
XXIX The relation of this Agreement to the Havana Charter 
XXX Amendments 
XXXI Withdrawal 
XXXII Contracting Parties 
XXXIII •» Accession 
XXXV Non-application of the Agreement between particular Contracting Parties 
XXXVI Principles and objectives 
XXXVII Commitments 
XXXVIII Joint action 
Annex H Relating to Article XXVI 
Annex I Notes and supplemenury provisions (related to above GATT Articles) 
Safeguard action for development purposes 
Undcrsunding regarding notification, consulution, dispute settlement and surveillance. 
•à 31.12.94 Official Journal of the European Communities No L 380/71 
(b) Related Instruments 
(i) Agreement on Technical Barriers to Trade (Standards Code) 
Preamble (paragraphs 1, 8, 9) * 
1.3. General provisions 
2.6.4. Preparation, adoption and application of technical regulations and sundards by 
central government bodies 
10.6. Information about technical regulations, sundards and certification systems 
11. Technical assisunce to other Parties 
12. Special and differential treatment of-developing countries 
13. The Committee on Technical Barriers to Trade 
14. Consulution and dispute setdement 
15. Final provisions (other than 15.5 and 15.13) 
Annex 2 Technical Expert Groups 
Annex 3 Panels 
(ii) 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. Consulutions 
13. Conciliation, dispute setdement and authorized counter measures 
14. Developing countries 
16. Committee on Subsidies and Countervailing Measures 
17. Conciliation 
18. Dispute setdement 
19.2. Accepunce and accession 
19.4. Entry into force 
19.5. (a) National legislation 
19.6. Review 
19.7. v. Amendments 
19.8. -.Withdrawal 
19.9. Non-application of this Agreement between particular signatories 
19.11. Secreuriat 
19.12. Deposit 
19.13. Registration 
(iv) Agreement on. Implementation of Article VII (Customs Valuation) 
1.2. (b) (iv) Transaction value 
11.1. Determination of customs value 
14. Application of Annexes (second sentence) 
18. Institutions (Committee on Customs Valuation) 
No L 380/72 . Official Journal of the European Communities 3L 12. 94 
19. Consulution 
20. Dispute settlement 
21. Special and differential treatment of developing countries 
22. Accepunce and accession 
24. Entry into force 
25.1. National legislation 
26. Review 
27. Amendments 
28. Withdrawal 
29. Secreuriat 
30. Deposit 
31. Registration 
Annex II Technical Committee on Customs Valuation 
Annex III Ad hoc panels 
Protocol to the Agreement on Implemenution of Article VII (except 1.7 and 1.8; with necessary 
conforming introductory language) 
(v) Agreement on Import Licensing Procedures 
1.4. General provisions (last sentence) 
2.2. Automatic import licensing (footnote 2) 
4. Institutions, consulution and dispute setdement 
5. Final provisions (except paragraph 2) 
(vi) Agreement on Implementation of Artide VI (Antidumping Code) 
13. Developing countries 
14. Committee on Anti-Dumping Practices 
15. Consulution, conciliation and dispute settlement 
16. Final piovisions (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-ofpayments purposes. 
(c) All other provisions in the GATT or Related Instruments which relate to: 
(i) govemmenul assisunce 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 countries; 
(ii) the esublishment or operation of specialist committees and other subsidiary institutions; 
(iii) signature, accession, entry into force, withdrawal, deposit and registration. 
31. 12. 94 Official Journal of the European Communities No L 380/73 
(d) All agreements, arrangements, decisions, understandings or other joint action pursuant to the 
provisions listed in subparagraphs (a) to (c). 
2. Contracung 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 practicable in the context, of the other provisions of this Treaty. 
3. With respect to notifications required by the provisions made applicable by Artide 29 (2) (a): 
(a) Contracting Parties which are not parties to the GATT or a Related Instrument shall make their 
notifications to the Secreuriat. The Secreuriat shall circulate copies of the notifications to all 
Contracting Parties. Notifications to the Secreuriat shall be in one of the authentic languages of 
this Treaty. The accompanying documents may be solely in the language of the Contracting Parry; 
(b) such requirements shall not apply to Contracting Parties to this Treaty which are also parties to the 
GATT and Related Instruments, which conuin their own notification requirements. 
4. Trade in nuclear materials may be governed by agreements referred to in the declarations related to this 
paragraph conuined in the Final Aa of the European Energy Charter Conference. 
-I 
-$ 10. Annex TFU 
PROVISIONS REGARDING TRADE AGREEMENTS BETWEEN STATES WHICH WERE 
CONSTITUENT PARTS OF THE FORMER UNION OF SOVIET SOCIALIST REPUBLICS 
(In accordance with Artide 29 (2) (b)) 
1. Any agreement referred to in Article 29 (2) (b) shall be notified in writing to the Secreuriat 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 the 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 
subparagraph (a), sufficiendy in advance of its entry into force for other Sûtes or Regional 
Economic Integration Organizations which have signed or acceded to the 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 applies; 
(c) an explanation, separately for each relevant provision of the GATT and Related Instruments made 
applicable by Article 29 (2) (a), of the circumsunces 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 circumsunces 
referred to in subparagraph (c); and 
No L 380/74 Official Journal of the European Communities 31. 12. 94 
(c) a description of the parties' programmes for achieving a progressive reduction and ultimate elim­
ination 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 represenutions. Upon the request of any of the Interested Parties, the agreement 
shall be considered by the Charter Conference, which may adopt recommendations with respea thereto. 
4. The Charter Conference shall periodically review the implemenution 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 recommen­
dations with respea 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 consulution provided for in subparagraph 1 (b), paragraphs 2 and 3, 
provided that such notification ukes place and the opportunity for such consulution is afforded 
promptly. In such a case the parties to the agreement shall nevertheless notify its text in accordance with 
subparagraph 2 (a) prompdy upon its entry into force. 
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 circum­
sunces 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 represenutions from the Interested Parties and of 
any recommendations of the Charter Conference. 
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 cooperation 
and consulutions to arrive at a mutually satisfactory resolution of any dispute about existing 
measures that might materially affect compliance with the provisions applicable to trade pursuant to 
Article 5 or 29. 
(b) A Contracting Party may make a written request to any other Contracting Party for consulutions 
regarding any existing measure of the other Contracting Party that it considers might affea 
materially compliance with provisions applicable to trade pursuant to Article 5 or 29. A Contraaing 
Party which requests consulutions shall to the fullest extent possible indicate the measure 
complained of and specify the provisions of Article 5 or 29 and of the GATT and Related 
Instruments that it considers relevant. Requests to consult pursuant to this paragraph shall be 
notified to the Secreuriat, which shall periodically inform the Contracting Parties of pending 
consulutions that have been notified. 
(c) A Contracting Party shall treat any confidential or proprieury information identified as such and 
conuined in or received in response to a written request, or received in the course of consulutions, 
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 Contraaing Party to affect compliance with provisions 
applicable to trade pursuant to Article 5 or 29 as between itself and another Contraaing Party, the 
Contracting Parties participating in consulutions or other dispute setdement shall make every effort 
to avoid a resolution that adversely affects the trade of any other Contracting Party. 
31. 12. 94 Official Journal of the European Communities No L 380/75 
2. (a) If, within 60 days from the receipt of the request for consulution referred to in subparagraph 1 (b), 
the Contracung Parties have not resolved their dispute or agreed to resolve k 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 subparagraphs (b) to (f). In its 
request the requesting Contracting Parry shall sute the substance of the dispute and indicate which 
provisions of Article 5 or 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 uken into account during the resolution of a 
dispute. Any other Contracting Parry having a subsuntial interest 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 Secreuriat have received written notice of its interest no later than the 
date of esublishment of the panel, as determined in accordance with subparagraph (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 Secreuriat pursuant to subparagraph (a). 
"y (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 Contraaing Parties agree otherwise, the 
members of a panel shall not b: citizens of Contracting Parties which either are party to the dispute 
or have notified their interest in accordance with subparagraph (b), or citizens of Sûtes members of 
a Regional Economic Integration Organization which either is party to the dispute or has notified 
its interest in accordance with subparagraph (b). 
(e) The disputing Contracting Parties shall respond within 10 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 uke instruction 
from any government or other body. Each Contracting Party undertakes to respea 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 back­
grounds and breadth of experience are reflected in a panel. 
m (g) The Secreuriat shall prompdy 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 Contraaing Party and any other Contraaing Party which has notified 
its interest in accordance with subparagraph 2 (b), shall have the right to at least one hearing before 
the panel and to provide a written submission. Disputing Contracting Parlies 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 subparagraph 2 (b) for access to any written 
submission made to the panel, with the consent of the Contracting Party which has made it. 
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 pursuant to Article 5 or 29. In exercising its funaions, a panel shall 
consult with the disputing Contracting Parties and give them adequate opportunity to arrive at a 
mutually sarisfaaory solution. Unless otherwise agreed by the disputing Contracting Parties, a panel 
shall base its decision on the arguments and submissions of the disputing Contraaing Parties. Panels 
shall be guided by the interpreutions 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 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. 
No L 380/76 Official Journal of the European Communities 31. 12. 94 
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 esub-
lishment of the panel; however, a failure to complete all procedures within this period shall not 
affea 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 Contraaing 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 esublishment of a panel in relation to disputes that are 
subsuntively similar, the Secreury-General may with the consent of all the disputing Contracting 
Parties appoint a single panel. 
4. (a) After having considered rebutul 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 aft opportunity to submit written comments on the descriptive sections 
within a period set by the panel. 
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 sutement of the facts and a summary 
of the arguments made by the disputing Contraaing Parties), the panel's findings and conclusions, 
and a discussion of arguments made on specific aspects of the interim report at the suge of its 
review. The final report shall deal with every subsuntial issue raised before the panel and necessary 
to the resolution of the dispute and shall sute 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 mainuined by a Contraaing Party does not 
comply with a provision of Article 5 or 29 or with a provision of the GATT or a Related Instrument 
that applies pursuant to 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. 
(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 Sec­
reuriat. Contraaing Parties having objeaions to a panel report shall give written reasons for their 
objections to the Secreuriat at least 10 days prior to the date on which the report is to be 
considered for adoption by the Charter Conference, and the Secreuriat shall promptly provide them 
to all Contracting Parties. The disputing Contracung Parties and Contracting Parties which notified 
their interest in accordance with subparagraph 2 (b) shall have the right to participate fully in the 
consideration 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 recommen­
dation 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, shall 
have a reasonable period of lime to effect compliance. The aim of dispute resolution is the modifi­
cation or removal of inconsistent measures. 
31. 12. 94 Official Journal of the European Communities No L 380/77 
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 
Contraaing Party a written request that the v. 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. 
(b) If the non-complying Contraaing Party refuses to negotiate, or if the Contraaing Parties have not 
reached agreement within 30 days after delivery of the request for negotiations, the injured 
Contraaing Party may make a written request for authorization of the Charter Conference to 
suspend obligations owed by it to the non-complying Contraaing Party pursuant to Article 5 or 29. 
(c) The Charter Conference may authorize the injured Contracting Party to suspend such of its obli­
gations to the non-complying Contracting Party, under provisions of Article 5 or 29 or under 
provisions of the GATT or Related Instruments that apply pursuant to Article 29, as the injured 
Contracting Party considers equivalent in the circumsunces. 
(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 satis­
factory solution is reached. 
6. (a) Before suspending such obligations the injured Contracting Pany 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 Secreury-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 subparagraph (e). 
(b) The Secretary-General shall establish an arbitral panel in accordance with subparagraphs 2 (d) to 
(f), which if practicable shall be the same panel which made the ruling or recommendation referred 
to in subparagraph 4 (d), to examine the level of obligations that the injured Contracting Pany 
proposes to suspend. Unless the Chaner Conference decides otherwise the rules of procedure for 
panel proceedings shall be adopted in accordance with subparagraph 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 review the nature of the obligations suspended, except in so far as this is insep­
arable from the determination of the level of suspended obligations. 
(d) The arbitral panel shall deliver its written determination to the injured and the non-complying 
Contracting Parties and to the Secreuriat within 60 days of the esublishment of the panel or within 
such other period as may be agreed by the injured and the non-complying Contracting Parties. The 
Secreuriat shall present the determination to the Chaner Conference at the earliest practicable 
opportunity, and no later than the meeting of the Chaner 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 Chaner Conference, and any level of suspension of benefits allowed thereby may 
thereupon be put into effect by the injured Contracting Pany in such manner as that Contracting 
Pany considers equivalent in the circumstances, unless prior to the expiration of the 30 days period 
the Chaner Conference decides otherwise. 
(f) In suspending any obligations to a non-complying Contracting Party, an injured Contracting Party 
shall make every effon not to affect adversely the trade of any other Contracting Pany. 
7. Each Contracting Pany may designate two individuals who shall, in the case of Contracting Panics 
which are also pany to the GATT, if they are willing and able 10 serve as panellists pursuant to this 
Annex, be panellists currently nominated for the purpose of GATT dispute panels. The Secretary-
General may also designate, with the approval of the Chaner Conference, not more than 10 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 seulement 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 
No L 380/78 Official Journal of the European Communities 31. 12. 94 
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 pursuant to Article 29. In fulfilling any 
function pursuant to 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 pursuant to this Annex. In die case of death, resignation or incapacity of a 
designee, the Contracting Party or the Secreury-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 Secreury-General being subjea to approval of the Charter Conference. 
8. Notwithsunding the provisions conuined in this Annex, Contracting Parties arc encouraged to consult 
throughout the dispute resolution proceeding with a view to setding 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 Secreuriat and the Secreury-General. 
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 percenuge contributions required under the latest available United Nations Regular 
Budget Scale of Assessment (supplemented by information on theoretical contributions for any 
Contraaing Parties which are not UN members). 
2. The contributions shall be adjusted as necessary to ensure that the toul of all Contracting Parties' 
contributions is 100 %. 
13. Annex PA 
LIST Op 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 
6. The Slovak Republic 
31. 12. 94 Official Journal of the European Communities No L 380/79 
14. Annex T 
CONTRACTING PARTIES' TRANSITIONAL MEASURES 
(In accordance with Article 32 (1)) 
List of Contracting Parties entitled to transitional arrangements 
/-Albania 
Armenia 
Azerbaijan 
Belarus 
Bulgaria 
Croatia 
The Czech Republic 
Estonia 
Georgia 
Hungary 
Kazakhsun 
Kyrgyzsun Latvia 
Lithuania 
Moldova 
Poland 
Romania 
The Russian Federation 
Slovakia 
Slovenia 
Tajikistan 
Turkmenistan 
Ukraine 
Uzbekistan 
List of provisions subjea to transitional arrangements 
I n Provision 
Article 6 (2) 
Article 6 (5) 
Article 7 (4) 
Article 9 (1) 
Article 10 (7) 
Article 14 (1) (d) 
Article 20 (3) 
Article 22 (3) Page 
80 
82 
84 
85 
86 
86 
87 
No L 380/80 Official Journal of the European Communities 31. 12. 94 
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 condua in economic 
activity in the energy sector.' 
COUNTRY: ALBANIA 
Sector 
Ail energy sectors. 
Level of government 
National. 
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 suge 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 
All energy seaors. 
Level of government 
National. 
Description 
At present a Sute monopoly exists in Armenia in most energy 
seaors. There is no law on proteoion 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. 
COUNTRY: AZERBAIJAN 
Sector 
All energy seaors. 
Level of government 
National. 
Description 
The anti-monopoly legislation is at the stage of elaboration. 
Phase-out 
1 January 2000. COUNTRY: BELARUS 
Sector 
All energy sectors. 
Level of government 
National. 
Description 
Anti-monopoly legislation is at the stage of elaboration. 
Phase-out 
1 January 2000. 
COUNTRY: GEORGIA 
Sector 
All energy sectors. 
Level of government 
National. 
Description 
Laws on demonopolization are at present at the stage of elabor­
ation in Georgia and that is why the Sute 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 
All energy seaors. 
Level of government 
National. 
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 funher, in particular by means of adopting 
relevant amendments or adopting a new law. 
Phase-out 
1 January 1998. 
COUNTRY: KYRGYZSTAN 
Sector 
All energy sectors. 
31. 12. 94 Official Journal of the European Communities No L 380/81 
Level of government 
National. 
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 seaor which is now strialy regulated by the Sute. 
Phase-out 
1 July 2001. 
COUNTRY: MOLDOVA 
Sector 
All energy sectors. 
Level of government 
National. 
Description 
The law on restriction of monopolistic activities and devel­
opment of competition of 29 January 1992 provides an organiz­
ational and legal basis for the development of competition, and 
of measures to prevent, limit and restria monopolistic aaivities; 
it is oriented towards implementing market economy conditions. 
This law, however, docs not provide for concrete measures of 
anti-competitive condua in the energy seaor, nor does it cover 
completely the requirements of Article 6. 
In 1995 drafts of a law on competition and a Sute programme 
of demonopolization of the economy will be submitted to the 
Parliament. The draft law on energy which will also be 
submitted to the Parliament in 1995 will cover issues on demon­
opolization and development of competition in the energy 
seaor. 
Phase-out 
1 January 1998. 
COUNTRY: ROMANIA 
Sector ^^ 
All energy sectors. 
Level of government 
National. 
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 conuins provisions with respect to anti-competitive 
behaviour, harmonized with the EC's law on competition. 
Phase-out 
31 December 1996. COUNTRY: THE RUSSIAN FEDERATION 
Sector 
All energy seaors. 
Level of government 
The Federation. 
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 monop­
olistic activities and unfair competition will have to be adopted 
and in particular in the energy sector. 
Phase-out 
1 July 2001. 
COUNTRY: SLOVENIA 
Sector 
All energy sectors. 
Level of government 
National. 
Description 
Law on proteoion of competition adopted in 1993 and 
published in Official Journal No 18/93 treats anti-competitive 
condua generally. The existing law also provides for conditions 
for the esublishment of competition authorities. At present the 
main competition authority is the Ofiice of Proteaion of 
Competition in the Ministry of Economic Relations and Devel­
opment. With regard to importance of energy sector a separate 
law in this respea is foreseen and thus more time for full 
compliance is needed. 
Phase-out 
1 January 1998. 
COUNTRY: TAJIKISTAN 
Sector 
All energy seaors. 
Level of government 
National. 
Description 
In 1993 Tajikistan passed the law on demonopolization and 
competition. However, due to the difficult economic situation in 
Tajikistan, the jurisdiction of the law has been temporarily 
suspended. 
Phase-out 
31 December 1997. 
No L 380/82 Official Journal of the European Communities 31. 12. 94 
COUNTRY: TURKMENISTAN : 
Sector 
All energy sectors. 
Level of government 
National. 
Description 
Under the Ruling of the President of Turkmenisun No 1532 of 
21 Oaobcr 1993 the Committee on Restricting Monopolistic 
Aaivities has been eublishcd and is acting now, the function of 
which is to protect enterprises and other entities from monopoly 
condua 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 condua of enterprises in 
the economic activity in the energy sector. Phase-out 
1 July 2001. ^ 
COUNTRY: UZBEKISTAN 
Sector 
All energy sectors. 
Level of government 
National. 
Description 
The law on restricting monopoly activities has been adopted in 
Uzbekisun and has been in force since July 1992. However, the 
law (as is specified in Article 1 (3) does not extend to the 
activities of enterprises in the energy sector. 
Phase-out 
1 July 2001. 
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 Contraaing Party to identify the 
anti-competitive conduct that is the subject of the notification and shall include an offer of such further 
information and cooperation as that Contraaing 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 Contraaing 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 Contraaing 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 aaion is 
initiated, the notified Contracting Party shall advise the notifying Contraaing Party of its outcome and, to 
the extent possible, of any significant interim development.' 
COUNTRY: ALBANIA 
Sector 
All energy sectors. 
Level of government 
National. 
Description 
In Albania there are no esublished 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. Level of government 
National. 
Description 
Institutions to enforce the provisions of this paagraph have not 
been esublished in Armenia. 
The laws on energy and proteaion of competition are planned 
to include provisions to esublish such institutions. 
Phase-out 
31 December 1997. 
Phase-out 
1 January 1999. 
Sector 
All energy sectors. COUNTRY: ARMENIA COUNTRY: AZERBAIJAN 
Sector 
All energy sectors. 
Level of government 
National. 
31. 12. 94 Official Journal of the European Communities No L 380/83 
Description 
Anti-monopoly authorities shall be esublished after the 
adoption of anti-monopoly legislation. 
Phase-out 
1 January 2000. 
COUNTRY: BELARUS 
Sector 
All energy sectors. 
Level of government 
National. 
Description 
Anti-monopoly authorities shall be esublished after the 
adoption of anti-monopoly legislation. 
Phase-out 
1 January 2000. 
COUNTRY: GEORGIA 
Sector 
All energy sectors. 
Level of government 
National. 
Description 
Laws on demonopolization are at present at the suge of elabor­
ation in Georgia and that is why there are no competition auth­
orities esublished yet. 
Phase-out 
1 January 1999. 
COUNTRY: KAZAKHSTAN 
Sector 
All energy sectors. 
Level of government 
National. 
Description 
An Anti-monopoly Committee has been esublished in 
Kazakhsun, but its activity needs improvement, both from 
legislative and organizational points of view, in order to 
elaborate an effective mechanism handling the complaints on 
anti-competitive conduct. 
Phase-out 
1 January 1998. 
COUNTRY: KYRGYZSTAN 
Sector 
All energy sectors. Level of government 
National. 
Description 
There is no mechanism in Kyrgyzsun to control the anti­
competitive condua and the relevant legislation. It is necessary 
to esublish relevant anti-monopoly authorities. 
Phase-out 
1 July 2001. 
COUNTRY: MOLDOVA 
Sector 
All 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 elab­
oration will have provisions on the enforcement of competition 
rules. 
Phase-out 
1 January 1998. 
COUNTRY: ROMANIA 
Sector 
All energy sectors. 
Level of government 
National. 
Description 
Institutions to enforce the provisions of this paragraph have not 
been esublished in Romania. 
The institutions charged with the enforcement of competition 
rules are provided for in the draft law on proteaion of 
competition which is scheduled to be adopted during 1994. 
The draft also provides a period of nine months for 
enforcement, suning with the date of its publication. 
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. 
No L 380/84 Official Journal of the European Communities 31. 12. 94 
COUNTRY: TAJIKISTAN 
Sector 
All energy seaors. 
Level of government 
National. 
Description 
Tajikisun has adopted laws on demonopolization and 
competition, but institutions to enforce competition rules are in 
the suge of development. 
Phase-out 
31 December 1997. COUNTRY: UZBEKISTAN 
Sector r-~ 
All energy sectors. 
Level of government 
National. 
Description 
The law on restricting monopoly activities has been adopted in 
Uzbekisun and has been in force since July 1992. However, the 
law (as is specified in Article 1 (3) does not extend to the 
activities of the enterprise*, in the energy sector. 
Phase-out 
1 July 2001. 
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 obsucles in the way of new 
capacity being esublished, except as may be otherwise provided in applicable legislation which is consistent 
with paragraph 1.' 
COUNTRY: AZERBAIJAN 
Sector 
All energy seaors. 
Level of government 
National. 
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 trans­
mission 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 
All energy sectors. 
Level of government 
National. 
Description 
Laws on energy, land and other subjects are being worked out 
at present, and until their final adoption, unceruinty remains as 
to the conditions for esublishing new transport capacities for 
energy carriers in the territory of Belarus. 
Phase-out 
31 December 1998. COUNTRY: BULGARIA 
Sector 
All energy seaors. 
Level of government 
National. 
Description 
Bulgaria has no laws regulating transit of energy materials and 
products. An overall restruauring is ongoing in the energy 
seaor, including development of institutional framework, legis­
lation and regulation. 
Phase-out 
The transitional period of seven 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 
National. 
Description 
It is necessary to prepare a set of laws on the matter. At present 
there are subsuntially 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. 
31. 12. 94 Official Journal of the European Communities No L 380/85 
O COUNTRY: HUNGARY 
Sector 
Electricity industry. 
Level of government 
National. 
Description 
According to the current legislation esublishment and operation 
of high-voluge transmission lines is a Sute monopoly. 
The creation of the new legal and regulatory framework for 
esublishment, operation and ownership of high-voluge trans­
mission lines is under preparation. 
The Ministry of Industry and Trade has already uken the 
initiative to put forward a new Aa on Electricity Power, that 
will have its impact also on the Civil Code and on the Aa 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 
AH energy sectors. 
Level of government 
National. 
Description 
Polish law on energy, being in the final suge of coordination, 
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. 
(I 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.aaivity 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 capiul 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 seaor in the areas of those other Contracting Parties, on a basis no less favourable 
than that which it accords in like circumsunces to its own companies and nationals or companies and 
nationals of any other Contraaing Parry or any third Sute, whichever is the most favourable.' 
COUNTRY: AZERBAIJAN 
Sector 
All energy sectors. 
Level of government 
National. 
Description 
Relevant legislation is at the suge.of elaboration. 
Phase-out 
1 January 2000. 
COUNTRY: BELARUS 
Sector 
All energy sectors. 
Level of government 
National. 
Description 
Relevant legislation is at the stage of elaboration. Phase-out 
1 January 2000. 
COUNTRY: GEORGIA 
Sector 
All energy seaors. 
Level of government 
National. 
Description 
Relevant legislation is at the suge of preparation. 
Phase-out 
1 January 1997. 
COUNTRY: KAZAKHSTAN 
Sector 
All energy sectors. 
No L 380/86 Official Journal of the European Communities 31. 12. 94 
Level of government 
National. 
Description 
The bill on foreign investments is at 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 ^ 
All energy seaors. 
Level of government 
National. 
Description 
Relevant legislation is currendy under preparation. 
Phase-out 
1 July 2001. 
Article 10 (7) — Specific measures 
'Each Contracting Party shall accord to investments in its area of investors of another Contraaing 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 Sute and their related aoivities including management, maintenance, 
use, enjoyment or disposal, whichever is the most favourable.' 
COUNTRY: BULGARIA 
Sector 
All energy sectors. 
Level of government 
National. 
Description 
Foreign persons may not acquire property rights over land. A 
company with more than 50 % of foreign person's share may 
not acquire property right over agricultural land. 
Foreigners and foreign legal persons may not aquire property 
rights over land except by way of inheritance according to the 
law. In this case they have to make it over. A foreign person may aquire property rights over buildings, but 
without property rights over the land. 
Foreign persons or companies with foreign controlling partici­
pation must obuin a permit before performing the following 
activities : 
— exploration, development and extraction of natural resources 
from the territorial sea, continenul shelf or exclusive 
economic zone, 
— acquisition of real esute in geographic regions designated by 
the Council of Ministers, 
— the permits are issued by the Council of Ministers or by a 
body authorized by the Council of Ministers. 
Phase-out 
1 July 2001. 
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 Description 
Sector 
All energy seaors. Foreign nationals employed by companies with more than 50 % 
of foreign participation, or by a foreign person registered as 
sole trader or a branch or a represenutive office of a foreign 
company in Bulgaria, receiving their salary in Bulgarian leva, 
may purchase foreign currency not exeeding 70 % of their 
salary, including social security payments. 
Level of government 
National. Phase-out 
1 July 2001. 
f 
31. 12. 94 Official Journal of the European Communities No L 380/87 
COUNTRY: HUNGARY 
Sector 
All energy sectors. 
Level of government 
National. 
Description 
According to the Aa on Investments 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 % of their aftertax earnings derived from 
the company of their employment through the bank of their 
company. 
Phasè-out 
The phase out of this particular restriction depends on the 
progress Hungary is able to make in the implemenution of the 
foreign exchange liberalization programme whose final target is 
the full convertibility of die Forint. This restriction does not 
create barriers to foreign investors. Phase-out is based on stipu­
lations of Article 32. 
1 July 2001. 
Article 20 (3) 
'Each Contraaing Party shall designate one or more enquiry points to which requests for information 
about the abovemcntioncd laws, regulations, judicial decisions and administrative rulings may be addressed 
and shall communicate promptly such designation to the Secreuriat which shall make it available on 
request.' 
COUNTRY: ARMENIA 
Sector 
All energy sectors. 
Level of government 
National. 
Description 
In Armenia there are no official enquiry points yet to which 
requests for information about the relevant laws and other regu­
lations could be addressed. There is no information centre 
either. There is a plan to esublish such a centre in 1994 to 1995. 
Technical assisunce is required. 
Phase-out 
31 December 1996. 
COUNTRY: AZERBAIJAN 
Sector 
All energy seaors. 
Level of government 
National. 
Description 
There are no official enquiry points so far in Azerbaijan to 
which requests for information about relevant laws and regu­
lations could be addressed. At present such information is 
concentrated in various organizations. 
Phase-out 
31 December 1997. 
COUNTRY: BELARUS 
Sector 
All energy sectors. Level of government 
National. 
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 judicial decisions and adminis­
trative rulings are concerned there is no praaice of their 
publishing. 
Phase-out 
31 December 1998. 
COUNTRY: KAZAKHSTAN 
Sector 
All energy seaors. 
Level of government 
National. 
Description 
The process of esublishing enquiry points has begun. As far as 
the judicial decisions and administrative rulings arc concerned 
they are not published in Kazakhsun (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 a long transitional period. 
Phase-out 
1 July 2001. 
COUNTRY: MOLDOVA 
Sector 
All energy sectors. 
Level of government 
National. 
No L 380/88 Official Journal of the European Communities 31. 12. 94 
Description 
It is necessary to esublish enquiry points. 
Phase-out 
31 December 1995. 
COUNTRY: THE RUSSIAN FEDERATION 
Sector 
All 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 
All energy sectors. 
Level of government 
National. 
Description 
In Slovenia there are no official enquiry points yet to which 
requests for information about relevant laws and other regu­
latory acts could be addressed. At present such information is 
available in various ministries. The law on foreign investments 
which is under preparation foresees establishment of such an 
enquiry point. Phase-out 
1 January 1998^-
COUNTRY: TAJIKISTAN 
Sector 
All energy seaors. 
Level of government 
National. 
Description 
There are no enquiry points yet in Tajikisun 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 
All energy sectors. 
Level of government -
National. 
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, regu­
lations, judicial decisions and administrative rulings and 
sundards of general application. 
Phase-out 
1 January 1998. 
Article 22 (3) 
'Each Contracting Party shall ensure that if it esublishes or mainuins a State entity and entrusts the entity 
with regulatory, administrative or other govemmenul 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 
National. 
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. 
31. 12. 94 Official Journal of the European Communities No L 380/89 
ANNEX 2 
DECISIONS WITH RESPECT TO THE ENERGY CHARTER TREATY 
The European Energy Charter Conference has adopted 
the following Decisions: 
1. With respect to the Treaty as a whole 
In the event of a conflict between the treaty 
concerning Spitsbergen of 9 February 1920 (the 
Svalbard Treaty) and the Energy Charter Treaty, the 
treaty concerning Spitsbergen shall prevail to the 
extent of the conflict, without prejudice to the 
positions of the Contracting Parties in respect of the 
Svalbard Treaty. In the event of such conflict or a 
dispute as to whether there is such conflict or as to its 
( fl extent, Article 16 and Part V of the Energy Charter 
Treaty shall not apply. 
2. 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. 
3. 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 sha_ll '-not impair the rights 
granted pursuant to ÂVticle 14 (1) to investors 
of other Contracting Parties with respect to 
their investments; (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 Contraaing 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 is a Contracting Party 
which is a State that was a constituent part of the 
former Union of Soviet Socialist Republics, which 
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. 
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 obli­
gations 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 combi­
nation of a current payment and a capital trans­
action, such as deferrals of payments and advances 
which is meant to circumvent respective legislation 
of the Limiting Party in the field. 
(b) such restrictions do not affect current trans-
attiorts; and 
(*) This Decision has been drafted in the undersunding that 
Contracting Parties which intend to avail themselves of it 
and which also have entered into Partnership and Coop­
eration Agreements with the European Communities and 
their Member States conuining an article disapplying those 
Agreements in favour of the Treaty, will exchange letters of 
undersunding which have the legal effect of making Article 
16 of the Treaty applicable between them in relation to this 
Decision. The exchange of letters shall be completed in 
good time prior to signature. 4. 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 pppropriate 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 
No L 380/90 Official Journal of the European Communities 31. 12. 94 
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. 
5. 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 ah 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. 
I Official Journal of the European Communities No L 380/91 
ANNEX 3 
ENERGY CHARTER PROTOCOL 
on energy efficiency and related environmental aspects 
PREAMBLE 
THE CONTRACTING PARTIES to this Protocol, 
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; and in 
particular to the declarations therein that cooperation is necessary in the field of energy efficiency and 
related environmental protection, 
Having regard also to the Energy Charter Treaty, opened for signature from 17 December 1994 to 16 June 
1995, 
Mindful of the work undertaken by international organizations and fora in the field of energy efficiency 
and environmenul aspects of the energy cycle; 
Aware of the improvements in supply security, and of the significant economic and environmenul gains, 
which result from the implementation of cost-effective energy efficiency measures; and aware of their 
importance for restructuring economies and improving living standards; 
Recognizing that improvements in energy efficiency reduce negative environmenul consequences of the 
energy cycle including global warming and acidification; 
Convinced that energy prices should reflect as far as possible a competitive market, ensuring market-
oriented price formation, including fuller reflection of environmental costs and benefits, and recognizing 
that such price formation is viul to progress in energy efficiency and associated environmenul protection; 
Appreciating the viul role of the private seaor including small and medium-sized enterprises in promoting 
and implementing energy efficiency measures, and intent on ensuring a favourable institutional framework 
for economically viable investment in energy efficiency; 
Recognizing that commercial forms of cooperation may need to be complemented by intergovernmenul 
cooperation, particularly in the area of energy policy formulation and analysis as well as in other areas 
which are essential to the enhancement of energy efficiency but not suitable for private funding; and 
Desiring to undertake cooperative and coordinated action in the field of energy efficiency and related 
environmental protection and to adopt a Protocol providing a framework for using energy as economically 
and efficiently as possible, 
HAVE AGREED AS FOLLOWS: 
No L 380/92 Official Journal of the European Communities 31.12.94 
PARTI 
INTRODUCTION 
Article 1 
Scope and objectives of the Protocol 
1. This Protocol defines policy principles for the 
promotion of energy efficiency as a considerable source 
of energy and for consequently reducing adverse 
environmental impacts of energy systems. It furthermore 
provides guidance on the development of energy ef­
ficiency programmes, indicates areas of cooperation and 
provides a framework for the development of coop­
erative and coordinated action. Such action.may include 
the prospecting for, exploration, production, conversion, 
storage, transport, distribution, and consumption of 
energy, and may relate to any economic sector. 
2. The objectives of this Protocol are: including the authority to take decisions binding on 
them in respea of those matters. 
4. 'Energy cycle' means the entire energy chain, 
including activities related to prospecting for, explo­
ration, 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. 
5. 'Cost-effectiveness' means to achieve a defined 
objective at the lowest cost or to achieve the greatest 
benefit at a given cost. 
6. '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. 
(a) the promotion of energy efficiency policies consistent 
with sustainable development; 
(b) the creation of framework conditions which induce 
producers and consumers to use energy as econ­
omically, efficiently and environmentally soundly as 
possible, particularly through the organization of 
efficient energy markets and a fuller reflection of 
environmental costs and benefits; and 7. '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) the fostering of cooperation in the field of energy 
efficiency. 
Article 2 
Definitions 
As used in this Protocol: PART II 
POLICY PRINCIPLES 
Article 3 
Basic principles 
'Charter' means the European Energy Charter 
adopted in the Concluding Document of the Hague 
Conference on the European Energy Charter signed 
atThe'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 Protocol and for which 
the Protocol is in force. Contracting Parties shall be guided by the following 
principles: 
1. Contracting Parties shall cooperate and, as appro­
priate, assist each other in developing and 
implementing energy efficiency policies, laws and 
regulations. 
2. Contracting Parties shall establish energy efficiency 
policies and appropriate legal and regulator)' 
frameworks which promote, inter alia: 
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 Protocol, (a) efficient functioning of market mechanisms 
including market-oriented price formation and a 
fuller reflection of environmental costs and 
benefits; 
31. 12. 94 Official Journal of the European Communities No L 380/93 
(b) reduction of barriers to energy efficiency, thus 
stimulating investments ; 
(c) mechanisms for financing energy efficiency 
initiatives; 
(d) education and awareness; 
(e) dissemination and transfer of technologies; 
(f) transparency of legal and regulatory frameworks. 
3. Contracting Parties shall strive to achieve the full 
benefit of energy efficiency throughout the energy 
cycle. To this end they shall, to the best of their 
competence, formulate and implement energy effi­
ciency policies and cooperative or coordinated actions 
based on cost-effectiveness and economic efficiency, 
taking due account of environmental aspects. Article 5 
Strategies and policy aims 
Contracting Parties shall formulate strategies and policy 
aims for improving energy efficiency and thereby 
reducing environmental impacts of the energy cycle as 
appropriate in relation to their own specific energy 
conditions. These strategies and policy aims shall be 
transparent to all interested parties. 
Article 6 
Financing and financial incentives 
1. Contracting Parties shall encourage the implemen­
tation of new approaches and methods for financing 
energy efficiency and energy related environmenul 
protection investments, such 
arrangements between energy 
investors (hereinafter referred 
Financing'). as joint venture 
users and external 
to as 'Third Party 
4. Energy efficiency policies shall include both 
short-term measures for the adjustment of previous 
practices and long-term measures to improve energy 
efficiency throughout the energy cycle. 
5. When cooperating to achieve the objectives of this 
Protocol, Contracting Parties shall take into account 
the differences in adverse effects and abatement costs 
between Contracting Parties. 
6. Contracting Parties recognize the vital role of the 
private sector. They shall encourage action by energy 
utilities, responsible authorities and specialized 
agencies, and close cooperation between industry and 
i(j| administrations. 
7. Cooperative or coordinated action shall take into 
account relevant principles^ adopted in international 
agreements, aimed at protection and improvement of 
the environment, to which Contraaing Parties are 
parties. 
8. Contracting b Parties shall take full advantage of the 
work and expertise of competent international or 
other bodies and shall take care to avoid duplication. 
Article 4 
Division of responsibility and coordination 
Each Contracting Party shall strive to ensure that energy 
efficiency policies are coordinated among all of its 
responsible authorities. 2. Contracting Parties shall endeavour to take 
advantage of and promote access to private capital 
markets and existing international financing institutions 
in order to facilitate investments in improving energy 
efficiency and in environmental protection related to 
energy efficiency. 
3. Contracting Parties may, subject to the provisions 
of the Energy Charter Treaty and to their other inter­
national legal obligations, provide fiscal or financial 
incentives to energy users in order to facilitate market 
penetration of energy efficiency technologies, products 
and services. They shall strive to do so in a manner that 
both ensures transparency and minimizes the distortion 
of international markets. 
Article 7 
Promotion of energy efficient technology 
1. Consistent with the provisions of the Energy 
Charter Treaty, Contraaing Parties shall encourage 
commercial trade and cooperation in energy efficient 
and environmentally sound technologies, energy related 
services and management practices. 
2. Contracting Parties shall promote the use of these 
technologies, services and management practices 
throughout the energy cycle. 
Article 8 
Domestic programmes 
1. In order to achieve the policy aims formulated 
according to Article 5, each Contracting Party shall 
No L 380/94 Official Journal of the European Communities 31. 12. 94 
develop, implement and regularly update energy effi­
ciency programmes best suited to its circumstances. 
2. These programmes may include activities such as 
the: 
(a) development of long-term energy demand 
supply scenarios to guide decision-making; and 
(b) assessment of the energy, environmenul and 
economic impact of actions uken; PART ffl 
INTERNATIONAL COOPERATION 
Article 9 
Areas of cooperation 
The cooperation between Contracting Parties may uke 
any appropriate form. Areas of possible cooperation are 
listed in the Annex. 
(c) definition of sundards designed to improve the effi­
ciency of energy using equipment, and efforts to 
harmonize these internationally to avoid trade 
distortions; 
(d) development and encouragement of private initiative 
and industrial cooperation, including joint ventures; 
(e) promotion of the use of the most energy efficient 
technologies that are economically viable and en-
vironmcnully sound; 
(f) encouragement of innovative approaches for 
investments in energy efficiency improvements, such 
as Third Party Financing and co-financing; PART IV 
ADMINISTRATIVE AND LEGAL ARRANGEMENTS 
Article 10 
Role of the Charter Conference 
1. All decisions made by the Charter Conference in 
accordance with this Protocol shall be made by only 
those Contracting Parties to the Energy Charter Treaty 
who are Contraaing Parties to this Protocol. 
(g) development of appropriate energy balances and 
daubases, for example with dau on energy demand 
at a sufficiently deuiled level and on technologies 
for improving energy efficiency; 
(h) promotion of the creation of advisory and 
consuluncy services which may be operated by 
public or private industry or utilities and which 
provide informaticm about energy efficiency 
programmes and technologies, and assist consumers 
and enterprises; 
(i) support and promotion of cogeneration and of 
measures to increase the efficiency of district heat 
production and distribution systems to buildings and 
industry; 
(j) esublishment of specialized energy efficiency bodies 
at appropriate levels, that are sufficiently funded and 
suffed to develop and implement policies. 
3. In implementing their energy efficiency 
programmes, Contracting Parties shall ensure that 
adequate institutional and legal infrastructures exist. 2. The Charter Conference shall endeavour to adopt, 
within 180 days after the entry into force of this 
Protocol, procedures for keeping under review and 
faciliuting the implemenution of its provisions, 
including reporting requirements, as well as for ident­
ifying areas of cooperation in accordance with Article 9. 
Article 11 
Secretariat and financing 
1. The Secretariat esublished pursuant to Article 35 
of the Energy Charter Treaty shall provide the Charter 
Conference with all necessary assistance for the 
performance of its duties under this Protocol and 
provide such other services in support of the Protocol as 
may be required from time to time, subject to approval 
by the Charter Conference. 
2. The costs of the Secretariat and Charter 
Conference arising from this Protocol shall be met by 
the Contracting Parties to this Protocol according to 
their capacity to pay, determined according to the 
formula specified in Annex B to the Energy Charter 
Treaty. 
31. 12. 94 Official Journal of the European Communities No L 380/95 
Article 12 
Voting 
1. Unanimity of Contracting Parties present and 
voting at the meeting of the Charter Conference where 
such matters fall to be decided shall be required for 
decisions to: 
(a) adopt amendments to this Protocol; and Charter Treaty, the provisions of the Energy Charter 
Treaty shall, to the extent of the inconsistency, prevail. 
2. Article 10(1) and Article 12(1) to (3) shall not 
apply to votes in the Charter Conference on amendments 
to this Protocol which assign duties or functions to the 
Charter Conference or the Secreuriat, the establishment 
of which is provided for in the Energy Charter Treaty. 
(b) approve accessions to this Protocol pursuant to 
Article 16. 
Contracting Parties shall make every effort to reach 
agreement by consensus on any other matter requiring 
their decision pursuant to this Protocol. If agreement 
cannot be reached by consensus, decisions on 
non-budgetary matters shall be taken by a three-fourths 
majority of Contracting Parties pre ent and voting at the 
meeting of the Charter Conference at which such 
matters fall to be decided. 
Decisions on budgetary matters shall be taken by a 
qualified majority of Contracting Parties whose assessed 
contributions pursuant to Article 11 (2) represent, in 
combination, at least three-fourths of the total assessed 
contributions. 
2. For purposes of this Article, 'Contracting Parties 
present and voting' means Contraaing Parties to this 
Protocol present and casting affirmative or negative 
votes, provided that the Charter Conference may decide 
upon rules of procedure to enable such decisions to be 
uken by Contracting Parties by correspondence. PART V 
FINAL PROVISIONS 
Article 14 
Signature 
This Protocol shall be open for signature at Lisbon from 
17 December 1994 to 16 June 1995 by the Sûtes and 
Regional Economic Integration Organizations whose 
representatives have signed the Charter and the Energy 
Charter Treaty. 
Article 15 
Ratification, accepunce or approval 
This Protocol shall be subjea to ratification, accepunce 
or approval by signatories. Instruments of ratification, 
accepunce or approval shall be deposited with the 
Depositary. 
3. Except as provided in paragraph 1 in relation to 
budgetary matters, no decision referred to in this Article 
shall be valid unless it has the support of a simple 
majority of Contracting Parties. 
4. A Regional Economic Integration Organization 
shall, when voting, have a number of votes equal to the 
number of its Member Sûtes" which are Contracting 
Parties to this Protocol; provided that such an Organ­
ization shall not exercise its right to vote if its Member 
States exercise theirs, and vice versa. Article 16 
Accession 
This Protocol shall be open for accession, from the date 
on which the Protocol is closed for signature, by Sûtes 
and Regional Economic Integration Organizations which 
have signed the Charter and are Contracting Parties to 
the Energy Charter Treaty, on terms to be approved by 
the Charter Conference. The instruments of accession 
shall be deposited with the Deposiury. 
5. In the event of persistent arrears in a Contracting 
Party's discharge of financial obligations under this 
Protocol, the Charter Conference may suspend that 
Contracting Party's voting rights in whole or in part. 
Article 13 
Relation to the Energy Charter Treaty 
1. In the event of inconsistency between the provisions 
of this Protocol and the provisions of the Energy Article 17 
Amendments 
1. Any Contracting Party may propose amendments 
to this Protocol. 
2. The text of any proposed amendment to this 
Protocol shall be communicated to Contracting Parties 
by the Secretariat at least three months before the date 
on which it is proposed for adoption by the Charter 
Conference. 
No L 380/96 Official Journal of the European Communities 31. 12. 94^ 
3. Amendments to this Protocol, texts of which have 
been adopted by the Charter Conference, shall be 
communicated by the Secreuriat to the Deposiury 
which shall submit them to all Contracting Parties for 
ratification, accepunce or approval. 
4. Instruments of ratification, accepunce or approval 
of amendments to this Protocol shall be deposited with 
the Depositary. Amendments shall enter into force 
between Contracting Parties having ratified, accepted or 
approved them on the 30th day after deposit with the 
Deposiury of instruments of ratification, accepunce 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 30th day after 
that Contracting Party deposits its instrument of ratifi­
cation, accepunce or approval of the amendments. 
Article 18 
Entry into force 
1. This Protocol shall enter into force on the 30th day 
after the date of deposit of the 15th instrument of ratifi­
cation, accepunce or approval thereof, or of accession 
thereto, by a State or Regional Economic Integration 
Organization which is a signatory to the Charter and a 
Contracting Party to the Energy Charter Treaty or on 
the same date as the Energy Charter Treaty enters into 
force, whichever is later. 
2. For each State or Regional Economic Integration 
Organization for which the Energy Charter Treaty has 
entered into force and which ratifies, accepts, or 
approves this Protocol or accedes thereto after the 
Protocol has entered into force in accordance with 
paragraph 1, the Protocol shall enter into force on the 
30th day after the date of deposit by such Sute or 
Regional Economic Integration Organization of its 
instrument of ratification, accepunce, approval or 
accession. 
3. For the purposes of paragraph 1, any instrument 
deposited by a Regional - Economic Integration Organ­
ization shall not be counted as additional to those 
deposited by Member Sûtes of such Organization. Article 19 
^ Reservations 
No reservations may be made to this Protocol. 
Article 20 
Withdrawal 
1. At any time after this Protocol has entered into 
force for a Contracting Party, that Contracting Party 
may give written notification to the Deposiury of its 
withdrawal from the Protocol. 
2. Any Contracting Party which withdraws from the 
Energy Charter Treaty shall be considered as also having 
withdrawn from this Protocol. 
3. The effective date of withdrawal pursuant to 
paragraph 1 shall be 90 days after receipt of notification 
by the Deposiury. The effective date of withdrawal 
pursuant to paragraph 2 shall be the same as the effective 
date of withdrawal from the Energy Charter Treaty. 
Article 21 
Deposiury 
The Government of the Portuguese Republic shall be the 
Depositary of this Protocol. 
Article 22 
Authentic texts 
In witness whereof the undersigned, being duly auth­
orized to that effea, have signed this Protocol in 
English, French, German, Iulian, Russian and Spanish, 
of which every text is equally authentic, in one original, 
which will be deposited with the Government of the 
Portuguese Republic. 
f 31.12.94 Official Journal of the European Communities No L 380/97 
Done at Lisbon on the seventeenth day of December in the year one diousand nine hundred 
and ninety-four. 
Fait à Lisbonne, le dix-sept décembre mil neuf cent quatre-vingt-quatorze. 
Geschehen zu Lissabon am siebzehnten Dezembcr neunzehnhundertvierundneunzig. 
Fatto a Lisbona il diciassettesimo giorno del mese di dicembre dell'anno millenovecentonovanta-
quattro. 
CoBepuieHo s Jlncceôone B ceMHaauaTud aem» aexaapsi oaua TMCjma 
ûeB«TbcoT fleBHHOcTo veTBeproro roaa. 
Hecho en Lisboa, el diecisiete de diciembre de mil novecientos noventa y cuatro. 
Udfaerdiget i Lissabon, den syttende december nittenhundrede og fireoghalvfems. 
Eytve o~rr| AioaBôva, onç 8éKa eitxà A£Kep0ploo TOO éxooç xtXta evtaicôaia evevfjvxa xéoaepa. 
Gedaan te Lissabon, de zeventiende december negentienhonderd vierennegentig. 
Fcito em Lisboa, aos dezassete de Dczembro de mil novecentos e noventa e quatre 
<• 
No L 380/98 Official Journal of the European Communities 31.12. 94 
Për Republikën e Shqipërisë 
^ujjuuiinuiGp ^uiGpuiu|btnrupjuiG hiuûuip 
For Australia 
Fiir die Republik Osterreich 
m 
31.12. 94 Official Journal of the European Communities No L 380/99 
Â3ep6oflnaH aMUH^aH 
s> *. 
Pour le royaume de Belgique 
Voor het Koninkrijk België 
Fiir das Kônigreich Belgien 
Cette signature engage également la Communauté française de Belgique, la Communauté flamande, 
la Communauté germanophone de Belgique, la Région wallonne, la Région flamande et la région 
de Bruxelles-Capitale. 
Deze handtekening bindt eveneens de Vlaamse Gemeenschap, de Franse Gemeenschap van België, 
de Duitstalige Gemeenschap van België, het Waals Gewest en het Brussels Hoofdstedelijk Gewest. 
Dièse Uhterschrift bindet ebenso die Flâmische Gemeinschaft, die Franzôsische Gemeinschaft Belgi­
ens, die Deutschsprachige Gemeinschaft Belgiens, die Flâmische Region, die Wallonische Region 
und die Region Brùssel-Hauptstadt. 
An iMfl PacnyÔJiiXi Senapycb 
« 
3a PenyônHKa BtJirapufi 
No L 380/100 Official, Jourrul of the European Communities 31.12.94, 
For Canada 
Pour le Canada 
za Republiku Hrvatsku 
For the Republic of Cyprus 
ZaCeskou Republiku < 
« 
31.12.94' -'/• ; Official Journal of the European Communities " No L 380/101 i 
f 
# For Kongeriget Danmark 
Oncc&w^O^J^^ 
Eesti Vabariigi nimel 
Por las Comunidades Europeas 
For De Furopatiske Fxllesskaber 
Fiir die Europaischen Gemeinschaften 
Tux xiç EopcûîtaïKéç Kotvornxeç 
For the European Communities 
Pour les Communautés européennes 
Per le Comunità europee 
Voor de Europesé Gemeenschappen 
Pelas Comunidades Europeias 
Suoinen tasavallan puolesta 
* . 
"*7 
No L 380/102 Official Journal of the European Communities ^#ïfe^.3iii£;sMi.''-
Pour la République française 
Fur die Bundesrepublik Deutschland 
Tux TTJV EXXtiynci^ ATiuoKpaxia 
3i.12.94 Official Journal of the European. Communities :%£NdL380/103 ^ 
A Magyar Kôztarsasag neyében 
Fyrir hônd Lyôveldisins islands 
Thar cheann na hÉïreann 
For Ireland 
Per la Repubblica italiana 
No L 380/104 
0*04>&je>£ 
KaaoxcTOH Pecny6jiMxacnuuu OTMHBH 
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Latvijas Republikas varda Officiai ' Journal of the European Com^^ wrap*- VJA:-''*' •"'•»' 
|v3tfni?4:: 
^^^t^^éêêg^ Official Journal of the European Communities: No L 380/105 
Fur das Furstentum Liechtenstein 
Lietuvos Respublikos vardu 
<i 
Pour le grand-duché de Luxembourg 
m For the Republic of Malu 
^|^3iri2.vft4; 
Pentru Republica Moldova 
Voor het Koninkxijk der Nederlanden 
For Kongeriket Norge 
21a Rzeczpospolita Polska NbL380/10«c • Official Journal of the European Communities 
31.12,94 .Official Journal of .the' European. Communities No L 380/107;^ 
7 • Pela Republica Portuguesa 
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Pentru Romania 
• 
3a PoccHflcxyo 4>éaepauMD 
Za Slovensku republiku 
• 
•No L 380/108 Official • Journal of the European Communities 31.12.94 
Za Republiko Slovenijo 
Î c 
Por el Reino de Espana 
For Konungariket Sverige 
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Ftir die Schweizerische Eidgenossenschaft 
Pour la Confédération suisse 
Per la Confederazione svizzera 
Jfel O.K-<-0<JW_ 
'31,12.94/ Official-Journal, ofthe Foiror>ean Conununities No L380/109 
A3 IIOMM TB7MKMCTOII 
Tiirkiye Cumhuriyeti adina 
TypxueHHCTaH XexyucTHiiMH oauimaH 
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No L 380/110 
For the United Kingdom of Great Britain and Northern Ireland 
For the United States of America 
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• 
• 31.12.94 •'••;.;* Official Journal of the European Communities Not 380/Ul; 
ANNEX 
Illustrative and non-exhaustive list of possible areas of cooperation pursuant to Article 9 
Development of energy efficiency programmes, including identifying energy efficiency barriers and 
potentials, and the development of energy labelling and efficiency standards. 
Assessment of die environmental impacts of the Energy Cycle. 
Development of economic, legislative and regulatory measures. 
Technology transfer, technical assistance and industrial joint ventures subjea to intemauonal property 
rights regimes and other applicable international agreements. 
Research and development-
Education, training, information and statistics. 
Identification and assessment of measures such as hscal or other market-based instruments, including 
tradable permits to take account of external, notably environmental, costs and benefits. 
Energy analysis and policy formulation: 
— assessment of energy efficiency potenuals, 
— energy demand analysis and statistics, 
— development of legislative and regulatory measures, 
— integrated resource planning and demand side management, 
— environmental impact assessment, including major energy projects. 
Evaluation of economic instruments for improving energy efficiency and environmental objectives. 
Energy efficiency analysis in refining, conversion, transport and distribution of hydro-carbons. 
Improving energy efficiency in power generation and transmission: 
— cogeneration, 
— plant component ((hojlers, turbines, generators, etc.), 
— network integration. 
Improving energy efficiency in die building seaor: 
— thermal insulation standards, passive solar and ventilation, 
— space heating and air conditioning systems, 
— high efficiency low NOx burners, 
— metering technologies and individual metering, 
— domestic appliances and lighting. 
Municipalities and local community services: 
— district heating systems, 
— efficient gas distribution systems, 
No L 380/112- ; Official Journal of the European Communities -, : 31.12*94 
— energy planning technologies, 
— twinning of towns or of other relevant territorial entities, 
' — energy management in cities and in public buildings,- . 
— waste management and energy recovery of waste. 
Improving energy efficiency in the industrial sector: 
— joint ventures, 
—< energy cascading, cogeneration and waste heat recovery, 
— enfcrgy audits. 
Improving energy efficiency in the transport sector: 
— motor vehicle performance standards, 
— development of efficient transport infrastructures. 
Information: 
— awareness creation, 
— daubases: access, technical specifications, information systems, 
— dissemination, collection and collation of technical information, 
— behavioural studies. 
Training and education: 
— exchanges of energy managers, officials, engineers and studerfts, 
— organization of international training courses. 
Financing: 
— development of legal framework, 
— Third Party Financing, 
— joint ventures, 
— co-financing. 
• 


ISSN 0254-1475 
COM(95) 440 final 
DOCUMENTS 
EN 12 14 
Catalogue number : CB-CO-95-493-EN-C 
ISBN 92-77-93884-6 
Office for Official Publications of the European Communities 
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