EUROPEAN UNION AND ITS MEMBER STATES – CERTAIN MEASURES RELATING TO THE ENERGY SECTOR NOTICE OF AN OTHER APPEAL BY THE RUSSIAN FEDERATION UNDER ARTICLE 16.4 AND ARTICLE 17 OF THE UNDERSTANDING ON RULES AND PROCEDURES GOVERNING THE SETTLEMENT OF DISPUTES (DSU), AND UNDER RULE 23 OF THE WORKING PROCEDURES FOR APPELLATE REVIEW
Document: AND PROCEDURES GOVERNING THE SETTLEMENT OF DISPUTES (DSU), AND UNDER RULE 23 OF THE WORKING PROCEDURES FOR APPELLATE REVIEW
Date: 28 September 2018
Document codes: WT/DS476/7
Complainant: Russia
Respondent: EU
Third parties: Brazil, China, India, Japan, Ukraine, U.S., Colombia, South Korea, Saudi Arabia
Dispute stage: Panel
Agreements cited: Art. XVI:1, XVII  Services (GATS)Art. III:4  GATT 1994Art. II:1, VI:1, VI:5(a)  Services (GATS)Art. I:1, XI:1, X:3(a)  GATT 1994Art. XVI  Services (GATS)

EUROPEAN UNION AND ITS MEMBER STATES – CERTAIN MEASURES RELATING
TO THE ENERGY SECTOR
NOTICE OF AN OTHER APPEAL BY THE RUSSIAN FEDERATION UNDER
ARTICLE 16.4 AND ARTICLE 17 OF THE UNDERSTANDING ON RULES
AND PROCEDURES GOVERNING THE SETTLEMENT OF DISPUTES (DSU), AND
UNDER RULE 23 OF THE WORKING PROCEDURES FOR APPELLATE REVIEW
The following communication, dated 26 September 2018, from the Delegation of the Russian
Federation, is being circulated to Members.

Notice of Other Appeal
Pursuant to Article 16.4 and 17 of the DSU, the Russian Federation hereby notifies to the Dispute
Settlement Body its decision to appeal to the Appellate Body certain issues of law covered and certain
legal interpretations developed by the Panel in European Union – Certain Measures Relating to the
Energy Sector (WT/DS476) ("Panel Report"). Pursuant to Rule 23 of the Working Procedures for
Appellate Review, the Russian Federation simultaneously files this Notice of Other Appeal with the
Appellate Body Secretariat.

For the reasons further elaborated in its submissions to the Appellate Body, the Russian Federation
appeals, and requests the Appellate Body to reverse, modify or declare moot and of no legal effect
the findings and conclusions of the Panel as summarized in paragraphs 8.1 (a) (i), (b), (c), and (e)
of the Panel Report, with respect to the following errors of law and legal interpretations, and to
complete the analysis1:

• Unbundling Measure: Article 11 of the DSU
the Panel erred in finding that the Russian Federation had not "substantiated its notion of the
unbundling measure in the Directive and the unbundling measure in the national implementing
laws of Lithuania being 'a single measure', or its alternative notion of the unbundling measure
in the Di rective and the unbundling measures in the natio nal implementing laws of all
EU member States being 'a single measure'". Thereby the Panel failed to make an objective
assessment of the matter before it, including an objective assessment of the facts of the case
and the applicability of and conformity with the relevant covered agreements in violation of
Article 11 of the DSU. The Russian Federation requests the Appellate Body to reverse the
Panel's findings in paragraph 7.383, and to complete the analysis of the Russian Federation's
claims under the GATS and the GATT 1994 pertaining to the Unbundling Measure based on
the conclusion that the combined application of the Directive and the implementing laws of
individual EU member States constitutes 'a single measure', for the purpose of determining
whether treatment no less favourable was accorded by the European Union, to Russian
services, service suppliers, and goods.

1 Pursuant to Rule 23(2)(c)(ii) of the Working Procedures, this Notice of Other Appeal includes an
indicative list of the paragraphs of the Panel Report containing the alleged errors, without prejudice to Russia's
ability to refer to other paragraphs of the Panel Report in the context of this appeal.

• Unbundling Measure: Article II:1 of the GATS
the Panel erred in finding that Russia had failed to demonstrate "that the unbundling measure
in the Directive accords less favourable treatment to Russian pipeline transport services and
service suppliers in comparison with that accorded to pipeline transport services and service
suppliers of any oth er non-EU country. The Russian Federation requests the Appellate Body
to reverse the Panel's findings in paragraphs 7.497, 7.508, and 7.514, as they are based on
the Panel 's erroneous finding in paragraph 7.383, and the Panel 's ultimate conclusion in
paragraph 8.1(a)(i). The Russian Federation requests the Appellate Body to complete the
analysis, based on an appropriate determination of the effect of the single measure, consisting
of the combined application of the Directive and the implementing laws of the EU member
states and to find that the Unbundling Measure is inconsistent with Article II:1 of the GATS.

• Public Body Measure: Article XVII:1 of the GATS
the Panel erred in finding that the Russian Federation had failed to demonstrate that the public
body measure in the national implementing laws of Croatia, Hungary and Lithuania modifies
the conditions of competition to the detriment of service suppliers of other Members in
comparison to like domestic service suppliers. The Russian Federation requests th e
Appellate Body to reverse the Panel's findings in paragraphs 7.741, 7.823, and 7.787, and the
erroneous analysis on which it is based, as well as the Panel's conclusion in paragraph 8.1(b),
and to find that by exempting EU Government -Owned Suppliers from t he unbundling
requirements, the public body measure modifies the conditions of competition to the detriment
of Russian service suppliers, in violation of Article XVII:1 of the GATS.

• LNG Measure: Article I:1 of the GATT 1994
the Panel erred in finding that the Russian Federation had failed to demonstrate that natural
gas from Russia and LNG imported from other countries are like products within the meaning
of Article I:1 of the GATT 1994. The Russian Federation requests the Appellate Body to reverse
the Panel's findings in paragraph 7.855 and the erroneous analysis on which it is based in
paragraphs 7.834-7.854, as well as the Panel 's conclusion in paragraph 8.1(c). The Russian
Federation requests the Appellate Body to complete the analysis, based on an appropriate
determination of the nature and extent of the competitive relationship between natural gas
imported from Russia and LNG, and to find that the LNG measu re is inconsistent with
Article I:1 of the GATT 1994.

• UPN Measure: Articles I:1 and III:4 of the GATT 1994
the Panel erred in finding that the Russian Federation had failed to demonstrate that the
upstream pipeline networks measure grants an advantage to natural gas of any particular
origin, and that the Russian Federation had failed to demonstr ate that the upstream pipeline
networks measure is inconsistent with Article III:4 of the GATT 1994. The Russian Federation
requests the Appellate Body to reverse the Panel's findings in paragraphs 7.1044 and 7.1047,
and the erroneous analysis on which it is based in para graphs 7.1007 -7.1043 and
7.1045-7.1046, as well as the Panel 's conclusion in paragraph 8.1(e), and to find that the
upstream pipeline networks measure is inconsistent with Art icles I:1 and III:4 of the
GATT 1994.