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
Date: 1995-09-20
Institutions: European Commission
Subjects: EAEC, ECSC, European charter, accession to an agreement, energy policy, environmental policy

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. 

2. 

3. 

4. 

5. 

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. 

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). 

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. 

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. 

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 
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. 

the  case  with  conclusion  of 

(,) 

See  Council  Decisions  of  15 December  1994,  OJ No  L  380,  31.12.1994. 

2 

6. 

7. 

8. 

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. 

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. 

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 
OJ No 

(,) 
(2) 
(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; 

it 

is  necessary 

Whereas 
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; 

the  initiative  and  the  central  role  of 

to  consolidate 

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 
the 
Energy  Charter  Conference; 

the  European  Communities'  position  within 

for  deciding 

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. 

This  Decision  shall  be  published  in  the  Official  Journal  of  the  European  Communities. 

Article 4 

Done  at  Brussels, 

For  the  Council 
The  President 

For  the  Commission 
The  President 

<t 

31.  12. 94 

Official  Journal  of  the  European  Communities 

No  L  380/3 

FINAL  ACT  OF  T HE  EUROPEAN  ENERGY  CHARTER  CONFERENCE 

of 

Japan, 

1994.  Representatives 

the  Republic  of  Iceland,  Ireland, 
Republic 
the  Republic  of  Kyrgyzstan, 

I.  The  final  Plenary  Session  of  the  European  Energy 
Charter  Conference  was  held  at  Lisbon  on  16  to 
17  December 
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 
the 
Hungary, 
of 
Italian  Republic, 
Kazakhstan, 
the 
the  Principality  of  Liech 
Republic  of  Latvia, 
tenstein, 
the  Grand 
Duchy  of  Luxembourg,  the  Republic  of  Malta,  the 
the 
Republic  of  Moldova, 
Netherlands, 
the 
the  Portuguese  Republic, 
Republic  of  Poland, 
Romania, 
the  Slovak 
Republic,  the  Republic  of  Slovenia,  the  Kingdom 
the  Swiss 
of  Spain, 
the  Kingdom  of  Sweden, 
Confederation, 
the 
Republic  of  Turkey,  Turkmenistan,  Ukraine,  the 
United  Kingdom  of  Great  Britain  and  Northern 
the 
Ireland, 
Republic  of  Uzbekistan  (hereinafter  referred  to  as 
'the 
the 
Conference,  as  did  invited  observers  from  certain 
countries  and  international  organizations. 

the  Kingdom  of 
of  Norway, 

the  United  States  of  America  and 

the  Republic  of  Tajikistan, 

the  Republic  of  Lithuania, 

the  Russian  Federation, 

representatives') 

the  Kingdom 

participated 

the 

in 

BACKGROUND 

the 

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 
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 
European 
invited 
Communities  to  study  how  best  to  implement  such 
cooperation.  In  February  1991 
the  Commission 
proposed 
the  concept  of  a  European  Energy 
Charter. 

the  Commission 

the 

of 

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 
the  Charter  was 
in  1991  and 
were  completed 
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 
their 
cooperation  as  soon  as  possible  by  negotiating 
in  good  faith  a  Basic  Agreement  and  Protocols. 

implement  and  broaden 

on 

began 

European 

later  called 

Energy  Charter 
negotiations 

The 
Conference 
accordingly 
a  Basic 
the  Energy  Charter 
Agreement  — 
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, 
hydrocarbons, 
safety 
although  in  the  last  case  negotiations  were  later 
suspended  until  completion  of  the  Energy  Charter 
Treaty. 

nuclear 

and 

Negotiations  on  the  Energy  Charter  Treaty  and 
the  Energy  Charter  Protocol  on  energy  efficiency 
and 
were 
environmental 
successfully  completed  in  1994. 

aspects 

related 

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 

the  European 
its  deliberations 
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 

IV.  By  signing  the  Final  A a,  the  represenutives  agreed 
to  adopt- the  following  understandings  with  respect 
to  the  Treaty: 

1.  With respect  to  the Treaty  as  a whole 

(a)  The 

that 

represenutives  underline 

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 
in  a 
particular  sector  and  as  a  result  cannot  be 
construed  to  constitute  a  precedent  in  the 
context  of  Other  international  negotiations. 

long-term  cooperation 

(iii)  land 

of 

and 

supply 

transportation,  -  distribution, 
storage 
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)  removal  and  disposal  of  wastes  from 
energy  related  facilities  such  as  power 
sutions,  including  radioactive  wastes 
from  nuclear  power  sutions; 

(v)  decommissioning  of  energy 

facilities, 
refineries 
plants; 

including 
and 

power 

oil 

related 
oil 
rigs, 
generating 

(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: 

(vii)  research, 

(i)  oblige 

any  Contracting  Party 

introduce  mandatory 
access;  or 

third 

to 
parry 

consulting, 

and  design 

planning, 
activities 
the  activities  mentioned 
at 

management 
to 
related 
above, 
including 
improving  energy  efficiency. 

aimed 

those 

(ii)  prevent 

the  use  of  pricing  systems 
which,  within  a  particular  category  of 
consumers,  apply 
to 
customers  in  different  locations. 

identical  prices 

(c)  Derogations  from  most  favoured  nation 
treatment  are  not 
to  cover 
measures  which  are  specific  to  an  investor 
or  group  of  investors,  rather  than  applying 
generally. 

intended 

2.  With  respect  to  Article  1 (5) 

(a)  It  is  understood  that  the  Treaty  confers  no 
in  economic  activities 
the 

to  engage 
than  economic  activities 

in 

rights 
other 
energy  sector. 

(b)  The  following  activities  are  illustrative  of 
economic  activity  in  the  energy  sector: 

(i)  prospecting  and  exploration  for,  and 
extraction  of,  e.g.,  oil,  gas,  coal  and 
uranium; 

(ii)  construction  and  operation  of  power 
those 
other 

generation  facilities, 
powered 
renewable  energy  sources; 

including 
and 

by  wind 

3.  With  respect  to  Article  1 (6) 

indirectly,  by 

For  greater  clarity  as  to  whether  an  investment 
made  in  the  area  of  one  Contracting  Party  is 
controlled,  directly  or 
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. 

Where  there  is  doubt  as  to  whether  an  investor 
controls,  directly  or  indirecdy,  an  investment, 
an 
the 
investor  claiming  such  control  has 
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) 

extent 

the  provisions 

The  represenutives'  agreement  to  Article  5  is 
not  meant  to  imply  any  position  on  whether  or 
to  what 
the 
Investment 
on  Trade-Related 
'Agreement 
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). 

of 

7.  With  respect  to  Article  6 

(a)  The 

unilateral 

concerted 

anti 
and 
competitive  conduct  referred  to  in  Article 
6 
each 
Contracting  Party  in  accordance  with  its 
laws  and  may  include  exploiutive  abuses. 

to  be '  defined  by 

(2)  are 

(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. 

8.  With  respect  to  Article  7  (4) 

applicable 

The 
provisions  on  environmenul  protection, 
use,  safety,  or  technical  sundards. 

legislation  would 

include 
land 

9.  With respect  to  Articles  9,  10 and  Part  V 

As  a  Contracting  Party's  programmes  which 
provide  for  public  loans,  grants,  guarantees  or 
investment 
insurance  for  facilitating 

trade  or 

abroad  are  not  connected  with  investment  or 
from  other 
related  activities  of 
Contracting 
such 
area, 
Parties 
programmes  may  be  subject  to  constraints  with 
respect  to  participation  in  them. 

investors 
its 
in 

10.  With  respect  to  Article  10  (4) 

the 

treaty  will 

supplementary 
for 

specify 
The 
conditions 
treatment 
applying 
described  in  Article  10  (3).  Those  conditions 
will  include,  inter  alia,  provisions  relating  to 
the  sale  or  other  divestment  of  sute  assets 
(privatization)  and 
the  dismantling  of 
to 
monopolies  (demonopolization). 

11.  With  respect  to  Articles  10  (4)  and  29  (6) 

Parties  may 

Contracting 
any 
connection  between  the  provisions  of  Article 
10  (4)  and  Article  29  (6). 

consider 

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 
International 
Moneury  Fund. 

the 

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  u ke 
such 
in 
requirements,  and  the  appropriate  procedures 
to  be  followed. 

decisions 

relation 

to 

14.  With  respect  to  Articles  22  and  23 

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 

in 

conuined 

the  GATT 

and 
Exceptions 
Related  Instruments  apply  between  particular 
Contracting  Parties  which  are  parties  to  the 
recognized  by  Article  4.  With 
G A I T,  as 
in  energy  materials  and 
trade 
to 
respect 

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) 

the  Charter.  The 

and 
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 

21.  With  respect  to  Article  34  (3)  (m) 

to 

reference 

treaty  obligations 

The 
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. 

in 

18.  With  respect  to  Article  29  (2)  (a) 

Instrument 

(a)  Where  a  provision  of  GATT  Ï947  or  a 
this 
Related 
paragraph  provides  for 
joint  action  by 
parties  to  the  GATT,  it  is  intended  that 
the  Charter  Conference  u ke  such  action. 

referred 

to 

in 

(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 
the  GATT, 
invoked  Article  X X XV  of 
thereby  disapplying 
vis-à-vis 
another  party  to  the  GATT,  but  never 
theless  applies  unilaterally  on  a  de  facto 
basis 
the  GATT 
vis-à-vis  that  other  party  to  the  GATT. 

some  provisions  of 

the  GATT 

19.  With  respect  to'Article  33 

The  provisional  Charter  Conference  should  at 
the  earliest  possible  date  decide  how  best  to 
give  effect 
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. 

to 

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 
the  Treaty 
undertake  usks  arising  from 

The  technical  changes  to  Annexes  might  for 
include,  delisting  of  non-signatories 
insunce 
or  of 
their 
signatories 
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. 

that  have  evinced 

22.  With  respect  to  Annex  TFU  (1) 

(a)  If  some  of  the  parties  to  an  agreement 
referred  to  in  paragraph  1 have  not  signed 
time 
or  acceded 
required  for  notification,  those  parties  to 
the  agreement  which  have 
signed  or 
acceded  to  the  Treaty  may  notify  on  their 
behalf. 

the  Treaty  at 

the 

to 

(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. 

f» 

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 

following 
declarations  that  were  made  with  respect  to  the 
Treaty: 

also  noted 

the 

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 

in  negotiations  with 
referred 
the 

The  Russian  Federation  wishes  to  have  recon 
to 
sidered, 
the 
regard 
to 
supplementary 
in  Article 
importance  of 
10  (4), 
national  legislation  with  respea  to  the  issue  of 
to 
control  as  expressed 
Article  1 (6). 

treaty 
the  question  of 

in  the  undemanding 

2.  With  respect  to  Articles  5  and  10  (11) 

the  GATT, 

Australia  notes  that  the  provisions  of  Articles  5 
and  1C  (11)  do  not  diminish  its  rights  and  obli 
gations  under 
including  as  elab 
the  Uruguay  Round  Agreement 
orated 
on 
Investment  Measures, 
particularly  with  respect  to  the  list  of  exceptions 
in  Article  5  (3),  which  it  considers  incomplete. 

Trade-Related 

in 

to 

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 
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  W TO  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 
and  Austria,  Norway,  Sweden 
Finland  declare  that  the  provisions  of  Article  7 
are  subject  to  the  conventional  rules  of  inter 
national 
jurisdiction  over  submarine 
cables  and  pipelines  or,  where  there  are  no  such 
rules,  to  general  international  law. 

law  on 

# 

that  Article  7 

further  declare 

is  not 
They 
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 
that  they  will  apply  the  provisions  of 
affirm 
Article  10  in  accordance  with 
following 
considerations: 

the 

to 

the 

investors 

accorded 

the  purposes  of  assessing 

For 
treatment 
which  must  be  accorded  to  investors  of  other 
Contracting  Parties  and  their  investments,  the 
circumstances  will  need  to  be  considered  on  a 
the 
case-by-case  basis.  A  comparison  between 
treatment 
one 
of 
investments  of 
Contracting  Party,  or 
the 
investors  of  one  Contracting  Party,  and 
investments  or  investors  of  another  Contracting 
is  made  between 
Party, 
if 
in  similar  circum 
investors  and 
differential 
stances. 
is 
investors 
treatment 
consistent  with  Article  10,  two  basic 
factors 
must  be  uken  into  account. 

In  determining  whether 

is  only  valid 

investments 

investments 

the 

or 

of 

it 

is 

factor 

in  Article 

investors  or 

The  first 
the  policy  objectives  of 
Contracting  Parties  in  various  fields  in  so  far  as 
the  principles  of 
they  are  consistent  with 
non-discriminatiôn 
10. 
set  out 
Legitimate  policy  objectives  may  justify  differ 
ential  treatment  of  foreign 
their 
investments  in  order  to  reflect  a  dissimilarity  of 
relevant  circumsunces  between  those  investors 
domestic 
and 
investments 
and 
their 
counterparts.  For  example, 
the  objective  of 
ensuring  the  integrity  of  a  country's  financial 
prudential 
system  would 
measures  with  respect  to  foreign 
investors  or 
investments,  where  such  measures  would  be 
unnecessary 
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 
if  such  a 
or 
measure  accorded  differential 
it 
would  not  be  contrary  to  Article  10. 

investments.  Thus,  even 

the  atuinment  of 

reasonable 

treatment, 

to  ensure 

justify 

their 

that 

the 
investment 

fact 
is  subject 

is  motivated  by 
investor  or 

The  second  factor  is  the  extent  to  which  the 
the 
measure 
relevant 
to 
foreign  ownership  or  under  foreign  control.  A 
measure  aimed  specifically  at  investors  because 
they  are  foreign,  without  sufficient  counter 
vailing  policy 
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. 

consistent  with 

reasons 

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  European 
esublishing 
Community: 

the  Treaty 

(a)  companies  or  firms  formed 

registered  office, 

in  accordance 
with  the  law  of  a  Member  Sute  and  having 
their 
central  adminis 
tration  or  principal  place  of  business  within 
the  Community  shall,  for  the  right  of  esub-
lishment  pursuant  to  Part  Three,  Title  III, 
the 
Chapter  2  of  the  Treaty  esublishing 
European  Community,  be 
the 
in 
same  way  as  natural  persons  who  are 
nationals  of  Member  Sûtes;  companies  or 
firms  which  only  have  their  registered  office 
within 
this 
purpose,  have  an  effective  and  continuous 
the 
link  with 
Member  Sûtes; 

the  economy  of  one  of 

the  Community  must, 

treated 

for 

(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 
those  which  are 
for 
law,  save 
non-profitmaking. 

The  European  Communities  and  their  Member 
Sûtes  further  recall  that: 

the 

above 

Community  law  provides  for  the  possibility  to 
extend 
to 
treatment  described 
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 
the  wider 
process  of  economic  integration  resulting  from 
the 
European 
es'ublishing 
Treaties 
Communities. 

treatment,  resulting 

from 

the 

6.  With  respect  to  Article  40 

that 

recalls 

the  European  Energy 
Denmark 
Charter  does  not  apply  to  Greenland  and  the 
Faroe  Islands  until  notice  to  this  effect  has  been 
received 
of 
Greenland  and  the  Faroe  Islands. 

governments 

local 

from 

the 

In  this  respect  Denmark  affirms  that  Article  40 
of  the  Treaty  applies  to  Greenland  and 
the 
Faroe  Islands. 

until 

reach 

and 
that  trade 

the 
(a)  The  European  .  Communities 
Russian  Federation  declare 
in 
nuclear  materials  between;  them  shall  be 
governed, 
another 
they 
agreement,  by  the  provisions  of  Article  22 
the  Agreement  on  Partnership 
of 
and 
Cooperation 
partnership 
esublishing 
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 
disputes 
declaration, 
regarding  such  trade  will  be  subject  to  the 
procedures  of  the  said  Agreement. 

joint 

and 

a 

(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. 

this 

into 

force  of 

Until  entry 
specific 
agreement,  the  provisions  of  the  Agreement 
on  Trade  and  Economic  and  Commercial 
European 
between 
Cooperation 
Economic  Community, 
European 
Atomic  Energy  Community  and  the  Union 
signed  at 
of  Soviet  Socialist  Republics 
shall 
18  December 
Brussels 
exclusively  continue  to  apply  to  trade  in 
nuclear  materials  between  them. 

the 
the 

1989 

on 

# 

(c)  The 

European 

the  Partnership 

Communities 
that, 

and 
in  accordance 
Kazakhsun  declare 
with 
and  Cooperation 
Agreement  initialled  at  Brussels  on  20  May 
in  nuclear  materials  between 
1994, 
them  shall  be  exclusively  governed  by  the 
provisions  of  a  specific  agreement 
to  be 
concluded  between 
the  European  Atomic 
Energy  Community  and  Kazakhsun. 

trade 

this 

into 

force  of 

Until  entry 
specific 
agreement,  the  provisions  of  the  Agreement 
on  Trade  and  Economic  and  Commercial 
European 
Cooperation 
Economic 
European 
Atomic  Energy  Community  and  the  Union 
at 
of  Soviet  Socialist  Republics 

between 
Community, 

the 
the 

signed 

31.  12. 94 

Official  Journal  of  the  European  Communities 

No  L  380/9 

Brussels  on 
shall 
18  December 
exclusively  continue  to  apply  to  trade  in 
nuclear  materials  between  them. 

1989 

(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. 

this 

into 

force  of 

between 
Community, 

Until  entry 
specific 
agreement,  the  provisions  of  the  Agreement 
on  Trade  and  Economic  and  Commercial 
European 
Cooperation 
Economic 
European 
Atomic  Energy  Community  and  the  Union 
at 
of  Soviet  Socialist  Republics 
Brussels  on 
shall 
18  December 
exclusively  continue  to  apply  to  trade  in 
nuclear  materials  between  them. 

the 
the 

signed 

1989 

that 

trade 

(e)  The  European  Communities  and  Tajikistan 
declare 
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. 

this 

into 

force  of 

between 
Community, 

Until  entry 
specific 
agreement,  the  provisions  of  the  Agreement 
on  Trade  and  Economic  and  Commercial 
European 
Cooperation 
Economic 
European 
Atomic  Energy  Community  and  the  Union 
at 
of  Soviet  Socialist  Republics 
Brussels  on 
shall 
18  December 
exclusively  continue  to  apply  to  trade  in 
nuclear  materials  between  them. 

signed 
1989 

the 
the 

(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. 

this 

into 

force  of 

between 
Community, 

Until  entry 
specific 
agreement,  the  provisions  of  the  Agreement 
on  Trade  and  Economic  and  Commercial 
European 
Cooperation 
Economic 
European 
Atomic  Energy  Community  and  the  Union 
at 
of  Soviet  Socialist  Republics 
Brussels  on 
shall 
exclusively  continue 
to  apply  to  trade  in 
nuclear  materials  between  them. 

18  December 

the 
the 

signed 

1989 

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 

henceforth 

VIII.  The  provisional  Charter  Conference 
Charter  Conference  provided  for 
responsible 
shall 
decisions  on 
to  sign 
Document  of  The  Hague  Conference  on 
European  Energy  Charter  and 
Energy  Charter  adopted  thereby. 

the 
and 
in  the  Treaty 
for  making 
the  Concluding 
the 
the  European 

be 
requests 

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 

3 1 . 1 2 . 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 

3 1 . 1 2 . 94 

Official  Journal  of  the  European  Communities 

No  L 380/11 

Per Republikën e  Shqipërisë 

^lUjuiuimuGp  ^tuûpuitqbinnipjuiû  huiduip 

* 

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 

f 
(Vs* 

a* 

For the Republic of Cyprus 

^^c/L^^ 

L O U L C V^ 

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 

-  < 

3 1 . 1 2. 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 

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A Magyar Koztarsasag ncvében 

Fyrir hônd Lyôveldisins islands 

és  l  ***)Uu> 

Thar cheann na hÉireann 

For Ireland 

Per la Repubblica italiana 

31.12. 94 

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No L 380/17 

0*CHO7t<DlC 

Ka3axcTan  Pecny6jiHKacunun  aTuiiaH 

Kupru3  PecnyôJiMxacu  ynyn 

Latvijas  Republikas  varda 

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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 

/ T W M^ 

Za Rzeczpospolita Polska 

*-f/^/*  ^-KèAdif 

s 

No L 380/20 

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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 

Por el Reino de Espana 

s  mc 

For Konungariket Sverige 

N 

'1Qy^/W-

C M A, 

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 

3 1 . 1 2 . 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 

T HE  CONTRACTING  PARTIES  TO  THIS  TREATY, 

Preamble 

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 
materials  and  products  and  related  equipment,  technologies  and  services; 

technical,  administrative  and  other  barriers 

to  remove 

to 

trade 

in  energy 

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 
to  be 
signature  of  the  Charter. 

is  considered 

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, 
to  take  decisions 
including  the  authority 
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 
European  Communities,  means  the  items  included  in 
Annex  EM. 

the  combined  nomenclature  of 

* 

activity 
refining, 
transmission, 

'Economic  activity  in  the  energy  sector'  means  an 
exploration, 
economic 
concerning 
land 
extraction, 
transport, 
trade, 
marketing,  or  sale  of  energy  materials  and  products 
except  those  included  in  Annex  NI,  or  concerning 
the  distribution  of  heat  to  multiple  premises. 

distribution, 

production, 

storage, 

the 

(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 
licences  and  permits  granted 
to  undertake  any  economic 

virtue  of  any 
pursuant 
activity  in  the  energy  sector. 

law 

to 

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. 

'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 

and 
immovable,  property,  and  any  property  rights 
such  as  leases,  mortgages,  liens,  and  pledges; 

and  movable 

intangible, 

(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, 
fulfils, 
in 

company  or  other  organization  which 
mutatis  mutandis, 
subparagraph  (a)  for  a  Contracting  Party. 

the  conditions  specified 

investments'  or 

'Make 
investments' 
means  establishing  new  investments,  acquiring  all  or 
part  of  existing  investments  or  moving  into  different 
fields  of  investment  activity. 

'making  of 

9.  'Returns'  means 

in  which 

the  amounts  derived 

from  or 
the 
associated  with  an  investment,  irrespective  of 
form 
including  profits, 
they  are  paid, 
dividends,  interest,  capital  gains,  royalty  payments, 
management,  technical  assistance  or  other  fees  and 
payments  in  kind. 

12. 

10.  'Area'  means  with  respect 

to  a  State 

that 

is  a 

Contracting  Party: 

(a)  the 

territory  under 

it  being 
understood  that  territory  includes  land,  internal 
waters  and  the  territorial  sea;  and 

its  sovereignty, 

(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 
the  Member  States  of  such 
the  areas  of 
means 
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. 

to 

(b)  'GATT  1947'  means  the  General  Agreement  on 
Tariffs  and  Trade,  dated  30  October  1947, 
the 
annexed 
Conclusion  of 
the 
Preparatory  Committee  of  the  United  Nations 
Conference  on  Trade  and  Employment,  as 
subsequently  rectified,  amended  or  modified. 

the  Final  Act  Adopted  at 
the  Second  Session  of 

(c)  'GATT  1994'  means  the  General  Agreement  on 
Tariffs  and  Trade  as  specified  in  Annex  1A  of 
the  World  Trade 
the  Agreement  Establishing 
Organization, 
rectified, 
amended  or  modified. 

subsequently 

as 

(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 
G A TT  1994),  its  Annexés  2,  3  and  4,  and 
the 
under 
thereto,  as  subsequently 
standings  related 
rectified,  amended  or  modified. 

decisions,  declarations 

and 

includes 

property' 

'Intellectual 
and 
related  rights,  trademarks,  geographical  indications, 
industrial  designs,  patents,  layout  designs  of  inte 
grated  circuits  and 
the  protection  of  undisclosed 
information. 

copyrights 

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 
into  by  two  or 
Conference,  which  is  entered 
more 
to 
order 
in 
Parties 
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. 

Contracting 

(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 
trans 
markets  and  widely  used 
actions. 

international 

in 

Article  2 

Purpose  of  the  Treaty 

long-term  cooperation 

This  Treaty  establishes  a  legal  framework  in  order  to 
field, 
promote 
in 
based  on  complementarities  and  mutual  benefits, 
accordance  with 
the 
the  objectives  and  principles  of 
Charter. 

the  energy 

in 

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 
production  that  it  exports; 

local 

The  Contracting  Parties  shall  work  to  promote  access  to 
international  markets 
and 
generally  to  develop  an  open  and  competitive  market,  for 
energy  materials  and  products. 

commercial 

terms, 

on 

Article  4 

Non-derogation  from  GATT  and  Related  Instruments 

in 

this  Treaty 

Nothing 
shall  derogate,  as  between 
particular  Contracting  Parties  which  are  parties  to  the 
GATT,  from  the  provisions  of  the  GATT  and  Related 
Instruments 
those 
Contracting  Parties. 

between 

applied 

they 

are 

as 

Article-  5 

Trade-related  investment  measures 

trade-
1.  A  Contracting  Party  shall  not  apply  any 
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  P a r t /s  rights  and 
obligations  under  the  GATT  and'  Related  Instruments 
and  Article  29. 

(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 
the 
enterprise;  or 

inflows  attributable 

to 

(e)  the  exportation  or  sale  for  export  by  an  enterprise  of 
in  terms  of  particular 
products,  whether  specified 
products,  in  terms  of  volume  or  value  of  products,  or 
in  terms  of  a  proportion  of  volume  or  value  of  its 
local  production. 

in  paragraph  1  shall  be  construed 

3.  Nothing 
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. 

temporarily  continue 

4.  Notwithstanding  paragraph  1,  a  Contracting  Party 
may 
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. 

to  maintain 

ê 

Such  measures 

2. 
investment  measure 
include  any 
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: 

Article  6 

Competition 

(a)  the  purchase  or  use  by  an  enterprise  of  products  of 
domestic  origin  or 
source, 
from 
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 
local 
production",  or 

any  domestic 

its 

(b)  that  an  enterprise's  purchase  or  use  of 

products  be  limited 
to 
volume  or  value  of  local  products  that  it  exports; 

to  an  amount  related 

imported 
the 

Each  Contracting  Party  shall  work 

1. 
market  distortions 
to 
economic  activity  in  the  energy  sector. 

and  barriers 

to  alleviate 
in 

competition 

it  has  and  enforces 

Each  Contracting  Party  shall  ensure  that  within  its 
2. 
laws  as  are 
jurisdiction 
necessary  and  appropriate 
to  address  unilateral  and 
concerted  anti-competitive  conduct  in  economic  activity 
in  the  energy  sector. 

such 

or  which  restricts: 

(c)  the  importation  by  an  enterprise  of  products  used  in 
or  related  to  its  local  production,  generally  or  to  an 

rules 

Contracting  Parties  with  experience 

in  applying 
3. 
competition 
to 
providing,  upon  request  and  within  available  resources, 
technical  assistance  on  the  development  and  implemen 
tation  of  competition  rules  to  other  Contracting  Parties. 

consideration 

shall  give 

full 

No  L  380/28 

Official  Journal  of  the  European  Communities 

31.  12.  94 

4.  Contracting 
the 
enforcement  of  their  competition  rules  by  consulting  and 
exchanging 

Parties  may 

information. 

cooperate, 

in 

to 

identify 

sufficient 

information 

to  permit 
the 

5. 
If  a  Contracting  Party  considers  that  any  specified 
anti-competitive  conduct  carried  out  within  the  area  of 
is  adversely  affecting  an 
another  Contracting  Party 
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 
the  notified 
cation 
Contracting  Party 
anti-competitive 
conduct  that  is  the  subject  of  the  notification  and  shall 
information  arid  co 
include  an  offer  of  such  further 
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 
notifying 
Contracting  Party  and  shall  accord  full  consideration  to 
the 
in 
deciding  whether  or  not  to  initiate  enforcement  action 
with 
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 
the  notifying 
it  wishes 
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. 

the  notifying  Contracting  Party 

authorities  of 

competition 

request  of 

respect 

inform 

the 

the 

to 

if 

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 
than  one 

the  areas  of  more 

facilities 
Contracting  Party; 

serving 

(c)  measures  to  mitigate  the  effects  of  interruptions  in 

the  supply  of  energy  materials  and  products; 

(d)  facilitating 

the  interconnection  of  energy 

transport 

facilities. 

that 

Party 

undertakes 

Each  Contracting 

3. 
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 
treat  such 
materials  and  products  originating  in  or  destined  for  its 
international  agreement 
own  area,  unless  an  existing 
provides  otherwise. 

its  provisions 

than 

In  the  event  that  transit  of  energy  materials  and 
4. 
terms  by 
products  cannot  be  achieved  on  commercial 
the  Contracting 
means  of  energy 
Parties  shall  not  place  obstacles 
the  way  of  new 
capacity  being  established,  except  as  may  be  otherwise 
provided  in  applicable  legislation  which  is  consistent  with 
paragraph  1. 

facilities 
in 

transport 

6.  Nothing  in  this  Article  shall  require  the  provision  of 
information  by  a  Contracting  Party  contrary  to  its  laws 
regarding  disclosure  of 
information,  confidentiality  or 
business  secrecy. 

7. 
The  procedures  set  forth  in  paragraph  5  and  Article 
27  (1)  shall  be  the  exclusive  means  within  this  Treaty  of 
resolving  any  disputes ^hat  may  arise  over  the  implemen 
tation  or  interpretation  of  this  Article. 

5.  A  Contracting  Party  through  whose  area  energy 
materials  and  products  may  transit  shall  not  be  obliged 
to 

(a)  permit  the  construction  or  modification  of  energy 

transport  facilities;  or 

(b)  permit  new  or  additional 
energy  transport  facilities, 

transit 

through  existing 

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. 

Each  Contracting  Party  shall  take 

1. 
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 

that 

from 

its  jurisdiaion  to 

dispute  over  any  matter  arising 
transit, 
interrupt  or  reduce,  permit  any  entity  subject  to  its 
control  to  interrupt  or  reduce,  or  require  any  entity 
subject  to 
interrupt  or  reduce  the 
existing  flow  of  energy  materials  and  products  prior  to 
the  conclusion  of  the  dispute  resolution  procedures  set 
out 
this  is  specifically 
provided  for  in  a  contract  or  other  agreement  governing 
such 
the 
conciliator's  decision. 

in  paragraph  7,  except  where 

transit  or  permitted 

in  accordance  with 

the  subject  of 

his  judgement  the  dispute  concerns  transit  that  is  or 
has  been 
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 
provisions  concerning 
and  the  compensation  of  conciliators. 

shall  adopt 

standard 
the  conduct  of  conciliation 

in  paragraph  6,  but  only 

The  following  provisions  shall  apply  to  a  dispute 
7. 
described 
the 
exhaustion  of  all  relevant  contractual  or  other  dispute 
resolution 
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: 

remedies  previously 

agreed  between 

following 

the 

Secretary-General 

(a)  A  Contracting  Party  party  to  the  dispute  may  refer  it 
to 
notification 
summarizing  the  matters  in  dispute.  The  Secretary-
General  shall  notify  all  Contracting  Parties  of  any 
such  referral. 

by 

a 

(b)  Within  30  days  of  receipt  of  such  a  notification,  the 
Secretary-General,  in  consultation  with  the  parties  to 
the  other  Contracting  Parties 
the  dispute  and 
shall  appoint  a  conciliator.  Such  a 
concerned, 
conciliator  shall  have  experience 
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. 

in 

4 

(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 
under 
diction 
subparagraph  (c)  on  tariffs,  terms  and  conditions  for 
12  months  following 
the  conciliator's  decision  or 
until  resolution  of  the  dispute,  whichever  is  earlier. 

decision 

observe 

interim 

any 

(e)  Notwithstanding 

the  Secretary-
General  may  elect  not  to  appoint  a  conciliator  if  in 

subparagraph 

(b) 

in 

this  Article  shall  derogate 

8.  Nothing 
Contracting  Party's  rights  and  obligations  under 
national 
international 
including  customary 
existing  bilateral  or  multilateral  agreements, 
rules  concerning  submarine  cables  and  pipelines. 

from  a 
inter 
law, 
including 

law 

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: 

(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 

for 

the  area  of 

(ii)  the  carriage  through  the  area  of  a  Contracting 
Party  of  energy  materials  and  products  orig 
inating  in  the  area  of  another  Contracting  Party 
that  other 
and  destined 
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 
the  Secretariat, 
which  shall  transmit  that  notification  to  all  other 
Contracting  Parties.  The  deletion 
take 
effect  four  weeks  after  such  former  notification. 

intentions 

their 

shall 

to 

(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 
for  handling 
energy  materials  and  products. 

facilities  specifically 

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 
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. 

trade 

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 
to 
non-proliferation  and  other  international  obligations. 

equipment 

services, 

related 

subject 

and 

Article  9 

Access  to  capital 

The 

Parties 

Contracting 

acknowledge 

1. 
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 
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. 

to 

for 

insurance 

facilitating 

2.  A  Contracting  Party  may  adopt  and  maintain 
programmes  providing  for  access  to  public  loans,  grants, 
guarantees  or 
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. ,* 

in 

shall, 

Parties 

Contracting 

3. 
implementing 
programmes  in  economic  activity  in  the  energy  sector  to 
improve  the  economic  stability  and  investment  climates 
to 
the  Contracting  Parties,  seek  as  appropriate 
of 
encourage 
the 
take  advantage  of 
the  operations  and 
institutions. 
expertise  of  relevant  international  financial 

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 
consumers,  depositors,  policy 
of 
holders  or  persons  to  whom  a  fiduciary  duty  is 
owed  by  a  financial  service  supplier;  or 

investors, 

(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 

Each  Contracting  Party  shall,  in  accordance  with 
1. 
the  provisions  of 
this  Treaty,  encourage  and  create 
stable,  equitable,  favourable  and  transparent  conditions 
for 
to  make 
investments  in  its  area.  Such  conditions  shall  include  a 

investors  of  other  Contracting  Parties 

to  accord  at  all  times "to 

investments  of 
commitment 
investors  of  other  Contracting  Parties  fair  and  equitable 
treatment.  Such  investments  shall  also  enjoy 
the  most 
constant  protection  and  security  and  no  Contracting 
impair  by  unreasonable  or 
Party  shall 
discriminatory  measures  their  management,  maintenance, 
such 
use,  enjoyment  or  disposal.  ,In  no  case  shall 
investments  be  accorded  treatment  less  favourable 
than 
that  required  by  international  law,  including  treaty  obli-

in  any  way 

31.  12.  94 

Official  Journal  of  the  European  Communities 

No  L  380/31 

gâtions.  Each  Contracting  Party  shall  observe  any  obli 
gations 
investor  or  an 
investment  of  an 
investor  of  any  other  Contracting 
Party. 

it  has  entered*  into  with  an 

2. 
Each  Contracting  Party  shall  endeavour  to  accord 
to  investors  of  other  Contracting  Parties,  as  regards  the 
treatment 
in 
making  of 
described  in  paragraph  3. 

investments 

its  area, 

the 

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  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. 

investors  or  of  the 

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. 

to 

investments 

investors  of  other  parties,  as  regards 

4.  A  supplementary  treaty  shall,  subject  to  conditions 
to  be  laid  down  therein,  oblige  each  party  thereto  to 
accord 
the 
treatment 
in 
making  of 
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 
supplementary 
treaty  shall  commence  not  later  than  1  January  1995, 
with  a  view  to  concluding  it  by  1 January  1998. 

its  area, 

towards 

the 

the 

Each  State  or  Regional  Economic 

9. 
Integration 
Organization  which  signs  or  accedes  to  this  Treaty  shall, 
on  the  date  it  signs  the  Treaty  or  deposits  its  instrument 
the  Secretariat 
of 
report 
accession, 
summarizing  all 
laws,  regulations  or  other  measures 
relevant  to: 

submit 

to 

a 

(a)  exceptions  to  paragraph  2;  or 

Each  Contracting  Party 

5. 
making  of  investments  in  its  area,  endeavour  to: 

shall,  as 

regards 

the 

(b)  the  programmes  referred  to  in  paragraph  8. 

(a)  limit 

to 

the  minimum 
Treatment  described  in  paragraph  3; 

the 

exceptions 

to 

the 

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. 

(b)  progressively  remove  existing  restrictions  affecting 

investors  of  other  Contracting  Parties. 

'^P 

6.  (a)  A  Contracung  Party  may,  as  regards  the  making 
time  declare 
of  investments  in  its  area,  at  any 
voluntarily  to  the  Charier  Conference, 
through 
the  Secretariat,  its  intention  not  to  introduce  new 
exceptions 
in 
paragraph  3. 

treatment 

described 

the 

to 

(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 
some  or  all 
investments 
economic  activities  in  the  energy  sector  in  its  area, 
in  paragraph  3.  Such 
treatment  described 
the 
commitments  shall  be  notified 
to  the  Secretariat 
and 
in  Annex  VC  and  shall  be  binding 
under  this  Treaty. 

listed 

in 

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. 

any  other  provision  of 

10.  Notwithstanding 
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 
international 
the 
agreements  for 
intellectual  property 
rights  to  which  the  respective  Contracting  Parties  are 
parties. 

the  protection  of 

applicable 

7. 
Each  Contracting  Party  shall  accord  to  investments 
in  its  area  of  investors  of  other  Contracting  Parties,  and 
including  management,  main-
their 

related  activities 

11. 
a  Contracting  Party  of 

For  the  purposes  of  Article  26,  the  application  by 
investment 

trade-related 

a 

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. 

2.  Without  prejudice  to  paragraph  1,  an  investor  of  a 
Contracting^  Party  which, 
the  situations 
referred  to  in  that  paragraph,  suffers  a  loss  in  the  area  of 
another  Contracting  Party  resulting  from: 

in  any  of 

Each  Contracting  Party  shall  ensure 

its 
12. 
domestic  law  provides  effective  means  for  the  assertion 
of  claims  and  the  enforcement  of  rights  with  respea  to 
investments, 
investment 
investment  agreements,  and 
authorizations. 

that 

•  Article  11 

Key  personnel 

to 

relating 

in  good 

another  Contracting  Party, 

1.  A  Contracting  Party  shall,  subject  to  its  laws  and 
the  entry,  stay  and  work  of 
regulations 
requests  by 
natural  persons,  examine 
faith 
investors  of 
key 
personnel  who  are  employed  by  such  investors  or  by 
investments  of  such 
remain 
investors, 
temporarily  in  its  area  to  engage  in  activities  connected 
the  development,  management, 
with 
maintenance,  use,  enjoyment  or  disposal  of 
relevant 
investments,  including  the  provision  of  advice  or  key 
technical  services. 

the  making  or 

to  enter  and 

and 

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 
the 
investor  of  any  other  Contracting  Party,  or  the  investor 
of  any  third  State. 

investor,  whether 

investor, 

its  own 

(a)  requisitioning  of  its  investment  or  part  thereof  by  the 

latter's  forces  or  authorities;  or 

(b)  destruction  of  its  investment  or  part  thereof  by  the 
latter's  forces  or  authorities,  which  was  not  required 
by  the  necessity  of  the  situation; 

shall  be  accorded  restitution  or  compensation  which  in 
either  case  shall  be  prompt,  adequate  and  effective. 

Article  13 

Expropriation 

1. 
Investments  of  investors  of  a  Contracting  Party  in 
the  area  of  any  other  Contracting  Party  shall  not  be 
nationalized,  expropriated  or  subjected  to  a  measure  or 
measures  having  effect  equivalent  to  nationalization  or 
expropriation  (hereinafter  referred  to  as  'expropriation') 
except  where  such  expropriation  is: 

(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 
impending  expropriation 
became  known  in  such  a  way  as  to  affect  the  value  of  the 
'valuation 
referred 
investment 
date'). 

the  expropriation  or 

(hereinafter 

to  as 

the 

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 
payment  of  compensation,  in  accordance  with  the  prin 
ciples  set  out  in  paragraph  1. 

its,  investment,  and  of 

the  valuation  of 

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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 

Each  Contracting  Party 

1. 
to 
investors  of  any  other 
investments 
Contracting  Party  guarantee  the  freedom  of  transfer  into 
and  out  of  its  area,  including  the  transfer  of: 

its  area  of 

shall  with 

respect 

in 

(a)  the  initial  capital  plus  any  additional  capital  for  the 
maintenance  and  development  of  an  investment; 

(b)  returns; 

(c)  payments  under  a  contract, 

including  amortization 
of  principal  and  accrued  interest  payments  pursuant 
to  a  loan  agreement; 

(d)  unspent 

earnings 

of 
personnel  engaged  from  abroad  in  connection  with 
that  investment; 

remuneration 

other 

and 

(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 

Transfers  shall  be  made  at 

3. 
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 
inward 
used  will  be  -the  most  recent  rate  applied 
for 
recent  exchange 
investments  or 
the  most 
conversion  of  currencies 
rights, 
into  special  drawing 
whichever  is  more  favourable  to  the  investor. 

rate 

to 

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. 

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 
either 
investments  of  investors  of  the  Contracting  Parties  which 
have  entered  into  such  agreements  or  investments  of 
investors  of  any  third  State. 

favourably 

Parties 

than 

less 

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 
investment 
authorization,  or  other  written  agreement  between  the 
Contracting  Party  and  either  an 
investor  of  another 
Contracting  Party  or  its  investment. 

investment  agreement, 

in  an 

Article  15 

Subrogation 

to  as 

referred 

If  a  Contracting  Party  or  its  designated  agency 
1. 
(hereinafter 
'Indemnifying  Party') 
the 
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  P a r t / ),  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. 

The  Indemnifying  Party  shall  be  entitled 

2. 
circumstances  to: 

in  all 

(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 

In  any  proceeding  pursuant 

to  Article  26,  a 
3. 
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 

international  agreement,  or  enter 

Where  two  or  more  Contracting  Parties  have  entered 
into  a 
into  a  prior 
subsequent 
in 
international  agreement,  whose 
either  case  concern  the  subject  matter  of  Part  III  or  V  of 
this. Treaty; 

terms 

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 
that 
agreement;  and 

thereto  under 

respect 

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 
investor  or  investment. 

is  more  favourable 

to 

the 

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 
the 
Contracting  Party  in  which  it  is  organized;  or 

the  area  of 

in 

2.  an  investment,  if  the  denying  Contracting  Party  estab 

lishes  that  such 
investor  of  a  third  State  with  or  as  to  which 
denying  Contracting  Party: 

investment  of  an 
the 

investment 

is  an 

(a)  does  not  maintain  a  diplomatic  relationship;  or 

(b)  adopts  or  maintains  measures  that: 

(i)  prohibit 
State;  or 

transactions  with 

investors  of 

that 

(ii)  would  be  violated  or  circumvented 

the 
benefits  of 
to 
this  part  were 
investors  of  that  State  or  to  their  investments. 

if 
accorded 

PART  rv 

MISCELLANEOUS  PROVISIONS 

Article  18 

Sovereignty  over  energy  resources 

The  Contracting  Parties 

1. 
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. 

the  objectives  of  promoting 
2.  Without  affecting 
access  to  energy  resources,  and  exploration  and  devel 
opment  thereof  on  a  commercial  basis,  the  Treaty  shall 
in  no  way  prejudice 
in  Contracting  Parties 
the  rules 
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 
the  environ 
mental  and  safety  aspects  of  such  exploration,  devel 
to 
opment 
participate 
inter 
alia,  through  direct  participation  by  the  government  or 
through  State  enterprises. 

in  such  exploration  and  exploitation, 

reclamation  within 

to  regulate 

its  area, 

and 

and 

The  Contracting  Parties  undertake 

facilitate 
4. 
access  to  energy  resources,  inter  alia,  by  allocating  in  a 
the  basis  of  published 
non-discriminatory  manner  on 
criteria 
and 
concessions 
contracts  to  prospect  and  explore  for  or  to  exploit  or 
extract  energy  resources. 

authorizations, 

licences, 

to 

31.  12.  94 

Official  Journal  of  the  European  Communities 

No  L  380/35 

Article  19 

Environmental  aspects 

In  pursuit  of  sustainable  development  and  taking 
1. 
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 
the  public 
interest  and  without  distorting  investment  in  the  energy 
cycle  or 
trade.  Contracting  Parties  shall 
accordingly: 

international 

regard 

to 

(a)  take 

account 

of 

environmental 

throughout  the  formulation  and 
their  energy  policies; 

considerations 
implementation  of 

(b)  promote  market-oriented  price 

formation  and  a 
fuller  reflection  of  environmental  costs  and  benefits 
throughout  the  energy  cycle; 

in 

the  attainment  of 

(c)  having  regard  to  Article  34  (4),  encourage  coop 
eration 
the  environmental 
objectives  of  the  Charter  and  cooperation  in  the  field 
the 
of 
in 
energy  cycle, 
between 
adverse 
Contracting  Parties; 

international  environmental 
taking 
and 

for 
into  account  differences 

abatement 

standards 

effects 

costs 

(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 

collection 

among 
the 
Contracting  Parties  of 
environ 
mentally  sound  and  economically  efficient  energy 
policies  and  cost-effective  practices  and. technologies; 

sharing 
information  on 

and 

(f)  promote  public  awareness  of 
impacts  of  energy  systems,  of 
prevention  or  abatement  of 
mental 
various  prevention  or  abatement  measures; 

the  environmental 
the  scope  for 
the 
their  adverse  environ 
the  costs  associated  with 

impacts,  and  of 

(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 
the 
implementation  of  those  programmes  and  standards; 

standards  and  on 

(k)  participate,  upon  request,  and  within  their  available 
resources,  in  the  development  and  implementation  of 
appropriate 
the 
Contracting  Parties. 

environmental 

programmes 

in 

this  Article  shall, 

2.  At  the  request  of  one  or  more  Contracting  Parties, 
disputes  concerning  the  application  or  interpretation  of 
provisions  of 
that 
arrangements  for  the  consideration  of  such  disputes  do 
fora,  be 
not  exist 
reviewed  by 
aiming  at  a 
solution. 

the  Charter  Conference 

in  other  appropriate 

international 

the  extent 

to 

3. 

For  the  purposes  of  this  Article: 

(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, 
fauna,  soil,  air,  water, 
climate, 
landscape  and  historical  monuments  or 
other  physical  structures  or  the  interactions  among 
these  factors; 
includes  effects  on  cultural 
heritage  or  socio-economic  conditions  resulting  from 
alterations  to  those  factors; 

it  also 

flora, 

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 
relevant 
Related  Instruments. 

the  GATT  and 

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 
to 
paragraph  shall  not  require  any  Contracting  Party 
disclose  confidential 
impede 
law  enforcement  or  otherwise  be  contrary  to  the  public 
interest  or  would  prejudice 
the  legitimate  commercial 
interests  of  any  investor. 

information  which  would 

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. 

Article  21 

Taxation 

in 

respect 

this  Article, 

Except  as  otherwise  provided 

1. 
nothing  in  this  Treaty  shall  create  rights  or  impose  obli 
gations  with 
the 
Contracting  Parties.  In  the  event  of  any  inconsistency 
between 
the 
Treaty,  this  Article  shall  prevail  to  the  extent  of  the 
inconsistency. 

this  Article  and  any  other  provision  of 

taxation  measures  of 

to 

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: 

(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 
taxation 
measures  of  the  Contracting  Parties  other  than  those  on 
income  or  on  capital,  except  that  such  provisions  shall 
not  apply  to: 

(7)  shall  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)  a n/  taxation  measure  aimed  at  ensuring  the  effective 
the  measure 
collection  of 
investor  of 
arbitrarily 
another  Contracting  Party  or  arbitrarily 
restricts 
benefits  accorded  under  the  investment  provisions  of 
this  Treaty. 

taxes,  except  where 
an 

discriminates 

against 

4.  Article  29 
measures  other  than  those  on  income  or  on  capital. 

(6)  shall  apply 

(2) 

to 

to 

taxation 

5.  (a)  Article  13  shall  apply  to  taxes. 

the  extent 

(b)  Whenever  an  issue  arises  pursuant  to  Article  13, 
tax 
to 
to  whether  a 
it  pertains 
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 
to  the  relevant  competent 
is  discriminatory 
tax  authority.  Failing  such  referral  by 
the 
the  Contracting  Party,  bodies 
investor  or 
to 
to  settle  disputes  pursuant 
called  upon 
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 
issues  so  referred.  Where 
to  resolve  the 
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 
tax 
in 
nation  provision 
convention  applicable  to  the  tax  or  no  such 
the 
tax  convention 
in 
they  shall 
Contracting  Parties  concerned, 
principles 
non-discrimination 
apply 
pursuant  to  the  Model  Tax  Convention  on 
Income  and  Capital  of  the  Organization  for 
Economic  Cooperation  and  Development; 

force  between 

relevant 

the 

the 

is 

(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 
in 
subparagraph  (b)  (ii)  by  the  competent  tax 
is 
regarding  whether 
authorities 
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; 

the  six-month  period  prescribed 

the 

tax 

(iv)  under  no  circumstances  shall  involvement  of 
the 
the  competent 
end  of  the  six-month  period  referred 
to  in 
subparagraph  (b)  (ii),  lead  «to  a  delay  of 
proceedings  pursuant  to  Articles  26  and  27. 

tax  authorities,  beyond 

For  the  avoidance  of  doubt,  Article  . 14  shall  not 
impose  or 

6. 
limit  the  right  of  a  Contracting  Party  to 
collect  a  tax  by  withholding  or  other  means. 

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 

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. 

(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. 

Each  Contracting  Party  shall  ensure  that  if  it  estab 
3. 
lishes  or  maintains  an  entity  and  entrusts  the  entity  with 
regulatory, 
governmental 
authority,  such  entity  shall  exercise  that  authority  in  a 
manner  consistent  with 
the  Contracting  Party's  obli 
gations  pursuant  to  this  Treaty. 

administrative 

other 

or 

to  which 

4.  No  Contracting  Party  shall  encourage  or  require 
any  entity 
special 
privileges  to  conduct  its  activities  in  its  area  in  a  manner 
inconsistent  with 
the  Contracting  Party's  obligations 
pursuant  to  this  Treaty. 

it  grants  exclusive  or 

For  the  purposes  of  this  Article,  'entity' 

5. 
any  enterprise,  agency  or  other  organization  or 
vidual. 

includes 
indi 

No  L  380/38 

Official  Journal  of  the  European  Communities 

31.  12.  94 

Article  23 

Observance  by  sub-national  authorities 

individuals  or  groups  or 
investments  and 
notifjed  to  the  Secretariat  as  such,  provided  thai 
such  measure: 

their 

is 

this  Treaty 

responsible 
1.  Each  Contracting  Party 
pursuant  to 
the  observance  of  all 
provisions  of  the  Treaty,  and  shall  take  such  reasonable 
it  to  ensure  such 
measures  as  may  be  available 
observance  by  regional  and  local  governments  and  auth 
orities  within  its  area. 

fully 

for 

to 

The  dispute  settlement  provisions  in  Parts  II,  IV 
2. 
in  respect  of 
and  V  of  this  Treaty  may  be  invoked 
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 

This  Article  shall  not  apply 

1. 
and  29. 

to  Articles  12,  13 

2. 

The  provisions  of  this  Treaty  other  than: 

(a)  those  referred  to  in  paragraph  1 ;  and 

(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 
those 
Contracting  Party  not  included  among 
for  whom  the  measure  is  intended; 

or 

that  no 

arbitrary 

unjustifiable 

shall  constitute 

provided 
s 
such  measure 
disguised  restriction  on  economic  activity  in  the  energy 
discriminatior 
sector,  or 
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 

The  provisions  of 

those 
3. 
referred 
tc 
prevent  any  Contraaing  Party  from  taking  any  measure 
which  it  considers  necessary: 

to  in  paragraph  1  shall  not  be  construed 

this  Treaty  other 

than 

(b)  with  respect 
Treaty; 

to  subparagraph  (i),  Part  III  of 

the 

including  those: 

(a)  for  the  protection  of  its  essential  security  interest 

shall  not  preclude  any  Contracting  Party  from  adopting 
or  enforcing  any  measure: 

(i)  relating  to  the  supply  of  energy  materials  anc 

products  to  a  military  establishment;  or 

(i)  necessary  to  protect  human,  animal  or  plant  life  or 

health; 

(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 
that 
Contracting  Party,  provided  that  any  such  measure 
shall  be  consistent  with  the  principles  that; 

the  control  of 

(A)  all  other  Contracting  Parties  are  entitled  to  an 
equitable  share  of  the  international  supply  of 
such  energy  materials  and  products;  and 

(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 
th> 
Non-Proliferation  of  Nuclear  Weapons,  the  Nuclea 
Suppliers  Guidelines,  and  other  international  nuclea 
non-proliferation  obligations  or  understandings;  or 

the  Treaty  on 

to 

(c)  for  the  maintenance  of  public  order. 

(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; 

Such  measure  shall  not  constitute  a  disguised  restrictio 
on  transit. 

(iii)  designed 

investors  who  are  aboriginal 
people  or  socially  or  economically  disadvantaged 

to  benefit 

4. 
favoured 

The  provisions  of  this  Treaty  which  accord  mo: 
an 

treatment 

nation 

oblige 

shall 

not 

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 

to  an  Economic  Integration  Agreement 
(hereinafter 
referred  to  as  *EIA')  to  extend,  by  means  of  most 
favoured  nation  treatment,  to  another  Contracting  Party 
is  not  a  party  to  that  EIA,  any  preferential 
which 
treatment  applicable  between  the  parties  to  that  EIA  as  a 
result  of  their  being  parties  thereto. 

(b)  which 

concerning 

is  accorded  by  a  bilateral  or  multilateral 
agreement 
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. 

economic 

Article  25 

Economic  Integration  Agreements 

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 
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. 

through 

thereto 

The  provisions  of 

this  Treaty  shall  not  be  so 
1. 
construed  as  to  oblige  a  Contracting  Party  which  is  party 

This  Article  shall  not  affect  the  application  of  the 
3. 
GATT  and  Related  Instruments  according  to  Article  29. 

PART  V 

DISPUTE  SETTLEMENT 

Article  26 

Settlement  of  disputes  between  an 
Contracting  Party 

investor  and  a 

(b)  (i)  The  Contracting  Parties  listed  in  Annex  ID 
do  not  give  such  unconditional  consent  where 
the 
the 
.has  previously  submitted 
dispute  under  subparagraph  (2)  (a)  or  (b). 

investor 

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. 

If  such  disputes  can  not  be  settled  according  to  the 
2. 
three 
provisions  of  paragraph  1  within  a  period  of 
months  from 
to  the 
dispute  requested  amicable  settlement,  the  investor  party 
to  the  dispute  may  choose  to  submit  it  for  resolution: 

the  date  on  which  either  party 

(ii)  For 

the 

. of 

sake 

transparency, 

statement  of 

in 
to  the  Secretariat  no  later  than 

each 
Contracting  Party  that  is  listed  in  Annex  ID 
shall  provide  a  written 
its 
this 
policies,  practices  and 
regard 
the 
date  of  the  deposit  of  its  instrument  of  ratifi 
cation,  acceptance  or  approval  in  accordance 
its 
with  Article  39  or 
instrument  of  accession 
in  accordance  with 
Article  41. 

the  deposit  of 

conditions 

(a)  to 

the  courts  or  administrative 
Contracting  Party  party  to  the  dispute; 

tribunals  of 

the 

(c)  A  Contracting  Party  listed  in  Annex  LA  does 
not  give  such  unconditional  consent  with 
respect 
last 
to  a  dispute  arising  under 
sentence  of  Article  10  (1). 

the 

(b)  in  accordance  with  any  applicable,  previously  agreed 

dispute  settlement  procedure;  or 

(c)  in  accordance  with  the  following  paragraphs  of  this 

Article. 

3.  (a)  Subject  only  to  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. 

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: 

(a)  (i)  the 

International  Centre 

for  Settlement  of 
Investment  Disputes,  established  pursuant  to  the 
Convention  on 
Investment 
Disputes  between  States  and  Nationals  of  other 
States  opened  for  signature  at  Washington,  18 
March  1965  (hereinafter  referred  to  as  the  'Icsid 

the  Settlement  of 

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 
the 
'Additional  Facility  Rules'), 
as 
Contracting  Party  of 
the 
Contracting  Party  party  to  the  dispute,  but  not 
both,  is  a  party  to  the  Icsid  Convention; 

if 
investor  or 

the 

the 

(b)  a  sole  arbitrator  or  ad  hoc  arbitration  tribunal  estab 
the  United 
International  Trade  Law 

lished  under 
Nations  Commission  on 
(hereinafter  referred  to  as  'Uncitral');  or 

the  Arbitration  Rules  of 

(c)  an  arbitra]  proceeding  under  the  Arbitration  Institute 

of  the  Stockholm  Chamber  of  Commerce. 

Treaty  and  applicable  rules  and  principles  of 
national  law^ 

inter 

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'. 

to 

award 

the  dispute.  An 

The  awards  of  arbitration,  which  may  include  an 
8. 
award  of  interest,  shall  be  final  and  binding  upon  the 
parties 
arbitration 
concerning  a  measure  of  a  sub-national  government  or 
authority  of 
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 
effective 
for 
enforcement  in  its  area  of  such  awards. 

the  disputing  Contracting  Party 

shall.  make  provision 

and 

the 

of 

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 
Icsid 
the 

purposes 
Convention 
Additional  Facility  Rules; 

of  Chapter 
for 

of 
II 
purposes 

and 

the 

of 

1.  Contracting  Parties 
settle 
disputes  concerning  the  application  or  interpretation  of 
this  Treaty  through  diplomatic  channels. 

endeavour 

shall 

to 

(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. 

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. 

Such  an  ad  hoc arbitral  tribunal  shall  be  constituted 

3. 
as  follows: 

that 

(b)  Any  arbitration  pursuant  to  this  Article  shall  at 
the  request  of  any  party  to  the  dispute  be  held  in 
the  New  York 
a  State 
arbitration 
Convention.  Claims 
to  arise  out  of  a 
hereunder  shall  be  considered 
commercial 
the 
transaction 
relationship  or 
purposes  of  Article  I  of  that  Convention. 

is  a  party 

submitted 

for 

to 

to 

6.  A  tribunal  established  pursuant  to  paragraph  4  shall 
this 
decide 

in  accordance  with 

in  dispute 

issues 

the 

(a)  The  Contracting  Party 

instituting 

the  proceedings 
shall  appoint  one  member  of  the  tribunal  and  inform 
the  other  Contracting  Party 
to  the  dispute  of  its 
appointment  within  30  days  of  receipt  of  the  notice 
referred  to  in  paragraph  2  by  the  other  Contracting 
Party. 

(b)  Within  60  days  of  the  receipt  of  the  written  notice 
to  in  paragraph  2,  the  other  Contracting 

referred 

31.  12. 94 

Official  Journal  of  the  European  Communities 

No  L  380/41 

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 
International 
the  Permanent  Court  of 
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. 

•9 

(e)  Appointments 

in 

made 

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. 

accordance 

(f)  In  the  absence  of  an  agreement 
the  Contracting  Parties, 

to 
the  contrary 
between 
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. 

measure  of  a  regional  or 

(i)  Where,  in  making  an  award,  a  tribunal  finds  that  a 
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 
the 
to  Article  27  unless 
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 
the  G A TT  and  Related 
Instruments. 

is  not  a  party 

to 

to 

shall 

the  GATT  or  a 

2.  (a)  Trade  in  energy  materials  and  products  between 
Contracting  Parties  at  least  one  of  which  is  not  a 
relevant  Related 
party 
Instrument 
to 
subject 
subparagraphs  (b)  and  (c)  and  to  the  exceptions 
the 
and 
provisions 
Related 
Instruments,  as  applied  on  1  March  1994  and 
practised  with  regard 
to  energy  materials  and 
products  by  parties  to  GATT  1947  among  them-

for 
of  GATT 

in  Annex  G,  by 

rules  provided 

governed, 

1947 

and 

be 

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 
the  provisions  of  Annex 
governed,  subjea 
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. 

to 

(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. 

Each  signatory  to  this  Treaty,  and  each  State  or 
3. 
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 
the 
Contracting  Parties  of  such  changes. 

to  the  Secretariat,  which  shall  inform 

4. 
to 
Each  Contracting  Party  shall  endeavour  not 
increase  any  tariff  rate  or  other  charge  levied  at  the  time 
of  importation  or  exportation: 

(a)  in  the  case  of  the  importation  of  energy  materials 
and  products  described  in  Part  I  of  the  schedule 
relating 
in 
Article  II  of  the  GATT,  above  the  level  set  forth  in 
that  schedule,  if  the  Contracting  Party  is  a  party  to 
the  GATT; 

the  Contracting  Party  referred 

to 

to 

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 
its 
proposal  for  such  an  increase,  given  other  interested 
for 
Contraaing  Parties 
and 
consultation  with 
accorded  consideration  to  any  representations  from 
such  Contraaing  Parties. 

opportunity 
its  proposal, 

the  Secretariat  of 

reasonable 

respect 

to 

Signatories  undertake 

6. 
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 
to 
shall,  subject 
amendment 
conditions 
therein,  commit  each 
Contracting  Party  not  to  increase  such  tariffs  or  charges 
beyond  the  level  prescribed  under  that  amendment. 

this  Treaty  which 

to 
to  be 

laid  down 

to 

shall 

disputes 

7.  Annex  D 
regarding 
apply 
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)  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 
the  provisions  made 
as  permitted 
applicable  by  subparagraph  2  (a). 

by 

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 
the  Uruguay  Round  of  Multilateral  Trade 
results  of 
Negotiations  embodied  principally 
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. 

in 

31.  12. 94 

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No  L  380/43 

Article  31 

Energy-related  equipment 

The  provisional  Charter  Conference  shall  at  its  first 
meeting  commence  examination  of 
inclusion  of 
energy-related  equipment  in  the  trade  provisions  of  this 
Treaty. 

the 

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 
the  Charter 
Conference. 

shall  be  made  by 

4.  A  Contracting  Party  which  has  invoked  transitional 
arrangements  shall  notify  the  Secretariat  no  less  often 
than  once  every  12  months: 

Article  32 

Transitional  arrangements 

in  Annex  T  may 

1. 
In  recognition  of  the  need  for  time  to  adapt  to  the 
requirements  of  a  market  economy,  a  Contracting  Party 
listed 
full 
compliance  with  its  obligations  under  one  or  more  of  the 
following  provisions  of 
the 
conditions  in  paragraphs  3  to  6: 

this  Treaty,  subject 

temporarily 

suspend 

to 

ft 

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) 

shall 

assist 

Parties 

2.  Other  Contracting 
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, 
multilateral 
arrangements. 

bilateral 

through 

or 

(a)  of  the  implementation  of  any  measures  listed  in  its 
full 

its  general  progress 

and  of 

to 

Annex  T 
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 

to 

the  need 

technical  assistance 

for 
the  stages  set  out 

facilitate 
completion  of 
in  Annex  T  as 
necessary  for  the  full  implementation  of  this  Treaty, 
to 
or  to  deal  with  any  problem  notified  pursuant 
to  promote  other 
subparagraph 
necessary  market-oriented 
and  modern 
ization  of  its  energy  sector; 

(b)  as  well  as 

reforms 

(d)  of  any  possible  need  to  make  a  request  of  the  kind 

referred  to  in  paragraph  3. 

The  Secretariat  shall: 

(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 
in 
paragraph  2  and  subparagraph  4  (c); 

technical  assistance  referred 

to 

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 
to 
full  compliance  pursuant 
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 

to  paragraph  1  undertake 

(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 

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31.  12.  94 

PART  VII 

STRUCTURE  AND  INSTITUTIONS 

Article  33 

Energy  Charter  Protocols  and  Declarations 

The  Charter  Conference  may 

1. 
the 
negotiation  of  a  number  of  Energy  Charter  Protocols  or 
Declarations  in  order  to  pursue  the  objectives  and  prin 
ciples  of  the  Charter. 

authorize 

2.  Any  signatory  to  the  Charter  may  participate  in 
such  negotiation. 

'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.  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. 

3. 
to: 

The  functions  of  the  Charter  Conference  shall  be 

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 
the  Contracting 
Parties  which  consent  to  be  bound  by  it,  and  shall  not 
those 
derogate 
Contracting  Parties  not  party  to  the  Protocol. 

rights  and  obligations  of 

from 

the 

to 

and 

functions 

6.  (a)  A  Protocol  may  assign  duties 
to 

to 
the  Charter 
Conference 
the  Secretariat, 
provided  that  no  such  assignment  may  be  made  by 
an 
that 
amendment 
the  Charter 
Conference,  whose  approval  shall  not  be  subjea 
to  any  provisions  of  the  Protocol  which  are  auth 
orized  by  subparagraph  (b). 

amendment 
is 

to 
approved 

a  Protocol 

unless 

by 

(b)  A  Protocol  which 

decisions 
thereunder  to  be  taken  by  the  Charter  Conference 
to.  subparagraph  (a),  provide  with 
may,  subject 
respea  to  sucfr-decisions : 

provides 

for 

(i)  for  voting  rules  other  than  those  contained  in 

Article  36; 

(ii)  that  only  parties 

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. 

to 

Article  34 

Energy  Charter  Conference 

(a)  carry  out  the  duties  assigned  to  it  by  this  Treaty  and 

any  Protocols; 

(b)  keep  under  review  and  facilitate  the  implementation 
the 

of 
provisions  of  this  Treaty  and  the  Protocols; 

the  principles  of 

the  Charter 

and  of 

(c) 

facilitate 
Protocols 
measures  to  carry  out  the  principles  of  the  Charter; 

the 
in  accordance  with 
the  coordination  of  appropriate  general 

this  Treaty  and 

(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 
including 
other 
privileges  and  immunities  considered  necessary  for 
the  Charter  Conference  and  the  Secreuriat; 

agreement, 

or 

promoting  market-oriented 

(g)  encourage  cooperative  efforts  aimed  at  facilitating 
and 
and 
modernization  of  energy  sectors  in  those  countries 
of  central  and  eastern  Europe  and  the  former  Union 
of  Soviet  Socialist  Republics  undergoing  economic 
transition; 

reforms 

(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 
approve  their  issuance; 

the  negotiation  of  declarations, 

and 

1. 
The  Contracting  Parties  shall  meet  periodically  in 
the  Energy  Charter  Conference  (referred  to  herein  as  the 

0)  decide  on  accessions  to  this  Treaty; 

31.  12.  94 

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(k)  authorize  the  negotiation  of  and  consider  and 

approve  or  adopt  association  agreements; 

(1)  consider  and  adopt  texts  of  amendments  to  this 

Treaty; 

(m)  consider  and  approve  modifications  of  and  technical 

changes  to  the  Annexes  to  this  Treaty; 

(n)  appoint  the  Secreury-General  and  u ke  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. 

& 

In 

its  duties, 

the  performance  of 

the  Charter 
4. 
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. 

The  Charter  Conference  may 

esublish 

it  considers  appropriate 

for 

5. 
subsidiary  bodies  as 
performance  of  its  duties. 

such 
the 

The  Charter  Conference  shall  consider  and  adopt 

6. 
rules  of  procedure  and  financial  rules. 

In  1999  and  thereafter  at  intervals  (of  not  more 
7. 
the  Charter 
to  be  determined  by 
than  five  years) 
Conference, 
thoroughly 
the  Charter  Conference  shall 
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 

In  carrying  out  its  duties,  the  Charter  Conference 
1. 
shall  have  a  Secretariat  which  shall  be  composed  of  a 
Secreury-General  and  such  suff  as  are  the  minimum 
consistent  with  efficient  performance. 

2. 
The  Secretary-General  shall  be  appointed  by  the 
Charter  Conference.  The  first  such  appointment  shall  be 
for  a  maximum  period  of  five  years. 

shall 

provide 

Secretariat 

the  Charter 
4.  The 
the 
for 
Conference  with  all  necessary  assistance 
performance  of 
the 
its  duties  and  shall  carry  out 
functions  assigned  to  it  in  this  Treaty  or  in  any  Protocol 
and'any  other  functions  assigned  to  it  by  the  Charter 
Conference. 

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 
for 
such  matters  fall  to  be  decided  shall  be  required 
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 
Integration 
the 
to 

41  by  States  or  Regional  Economic 
Organizations  which  were  not  signatories 
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 
panelists  pursuant  to  Annex  D,  paragraph  7. 

nominations  of 

The  Contracting  Parties  shall  make  every  effort  to  reach 
agreement  by  consensus  on  any  other  matter  requiring 
their  decision  pursuant 
this  Treaty.  If  agreement 
cannot  be  reached  by  consensus,  paragraphs  2  to  5  shall 
apply. 

to 

2.  Decisions  on  budgeury  matters 
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. 

referred 

to 

3.  Decisions  on  matters  referred  to  in  Article  34  (7) 
shall  be 
the 
Contracting  Parties. 

three-fourths  majority  of 

taken  by  a 

3. 
In  the  performance  of  its  duties  the  Secreuriat  shall 
be  responsible  to  and  report  to  the  Charter  Conference. 

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 

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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. 

Article  37 

Funding  principles 

5. 
For  purposes  of  this  Article,  'Contracting  Parties 
present  and  voting'  means  Contracting  Parties  present 
and  casting  affirmative  or  negative  votes,  provided  that 
rules  of 
the  Charter  Conference  may  decide  upon 
taken  by 
to  be 
procedure 
Contracting  Parties  by  correspondence. 

to  enable  such  decisions 

Except  as  provided 

6. 
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 
its  Member  Sûtes  which  are  Contracting 
number  of 
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, 
that 
Contracting  Party's  voting  rights  in  whole  or  in  part. 

the  Charter  Conference  may  suspend 

Each  Contracting  Party  shall  bear  its  own  costs  of 
1. 
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 
the 
as  specified 
provisions  of  which  may  be  modified  in  accordance  with 
Article  36  (1)  (d). 

in  Annex  B, 

4.  A  Protocol  shall  conuin  provisions  to  assure  that 
any  costs  of  the  Secretariat  arising  from  that  Protocol 
are  borne  by  the  parties  thereto. 

The  Charter  Conference  may  in  addition  accept 
5. 
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 
ratification, 
approval  by 
accepunce  or  approval  shall  be  deposited  with 
the 
Depositary. 

Instruments  of 

signatories. 

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  u ke 
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 
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. 

the  Deposiury,  bind 

the 

3.  Any  declaration  made  under 
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 

The  definition  of  'area'  in  Article  1  (10)  shall  be 
to  any  declaration  deposited 

4. 
construed  having  regard 
pursuant  to  this  Article. 

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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 

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 
the  date  on 
Secreuriat  at  least  three  months  before 
which 
the  Charter 
for  adoption  by 
Conference. 

is  proposed 

it 

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. 

For  each  State  or  Regional  Economic  Integration 
2. 
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 
approval  or  accession. 

ratification,  accepunce, 

instrument  of 

its 

3.  Amendments  to  this  Treaty,  texts  of  which  have 
the  Charter  Conference, 
been  adopted  by 
shall  be 
communicated  by 
the  Depositary 
the  Secreuriat 
which  shall  submit  them  to  all  Contracting  Parties  for 
ratification,  accepunce  or  approval. 

to 

For  the  purposes  of  paragraph  1,  any  instrument 
3. 
deposited  by  a  Regional  Economic  Integration  Organ 
ization  shall  not  be  counted  as  additional 
those 
deposited  by  Member  States  of  such  Organization. 

to 

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 
the  Contracting  Parties. 
at 
Thereafter  the  amendments  shall  enter  into  force  for  any 
other  Contraaing  Party  on 
that 
Contraaing  Party  deposits  its  instrument  of  ratification, 
accepunce  or  approval  of  the  amendments. 

the  90th  day  after 

three-fourths 

least 

of 

Article  43 

Association  agreements 

The  Charter  Conference  may 

1. 
the 
negotiation  of  association  agreements  with  Sûtes  or 
Regional  Economic  Integration  Organizations,  or  with 
the 
to  pursue 
international  organizations, 
objectives 
the 
and 
provisions  of  this  Treaty  or  one  or  more  Protocols. 

and  principles  of 

the  Charter 

in  order 

authorize 

The  relationship  established  with  and 

2. 
the  rights 
enjoyed  and  obligations  incurred  by  an  associating  State, 
inter 
Regional  Economic  Integration  Organization,  or 
the 
national  organization 

appropriate 

shall  be 

to 

Article  45 

Provisional  application 

Each 

this  Treaty 
agrees 
1. 
signatory 
provisionally  pending 
such 
its  entry 
signatory  in  accordance  with  Article  44,  to  the  extent 
that  such  provisional  application  is  not  inconsistent  with 
its  constitution,  laws  or  regulations. 

apply 

force 

into 

for 

to 

to 

the  Depositary 

signing,  deliver 

2.  (a)  Notwithsunding  paragraph  1  any  signatory  may, 
a 
when 
declaration  that  it  is  not  able  to  accept  provisional 
application. 
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. 

obligation 

contained 

The 

(b)  Neither  a  signatory  which  makes  a  declaration  in 
accordance  with  subparagraph  (a)  nor  investors  of 
that 
of 
provisional  application  pursuant  to  paragraph  1. 

signatory  may 

the  benefits 

claim 

(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 

(I 

Û 

No  L  380/48 

Official  Journal  of  the  European  Communities 

31.  12.  94 

such  provisional  application 
with  its  laws  or  regulations. 

is  not 

inconsistent 

Article  46 

Reservations 

3.  (a)  Any 

terminate 

signatory  may 

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 
for  any  signatory  shall 
provisional  application 
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 

that 

event 

signatory 

terminates 
a 
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 
20  years 
following  the  effective  date  of  termination,  except 
as  otherwise  provided  in  subparagraph  (c). 

investments 

those 

for 

to 

(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. 

Pending 

the  entry  into  force  of 
in 

this  Treaty 
the 
4. 
signatories  shall  meet  periodically 
the  provisional 
Charter  Conference,  the  first  meeting  of  which  shall  be 
to  in 
convened  by  the  provisional  Secreuriat  referred 
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. 

The  signatories  shall, 

6. 
in  i accordance  with  and 
subject  to  the  provisions  of  paragraph  1  or  subparagraph 
the 
the  costs  of 
2  (c)  as  appropriate,  contribute 
provisional  Secreuriat 
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. 

to 
the 

as 

if 

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 
the 
Treaty. 

to  the  Deposiury  of 

its  withdrawal  from 

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. 

The  provisions  of 

this  Treaty  shall  continue 

to 
3. 
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 
the  European  Energy 
Annex  2  to 
Charter  Conference  signed  at  Lisbon  on  17  December 
1994  are  integral  parts  of  the  Treaty. 

the  F;nal  Act  of 

Article  49 

Deposiury 

The  Government  of  the  Portuguese  Republic  shall  be  the 
Depositary  of  this  Treaty. 

Article  50 

Authentic  texts 

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. 

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. 

<\ 

3 1 . 1 2 . 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 

3 1 . 1 2.  94 

Për Republikën e Shqipërisë 

^lujinuinujOp  3uiûpumjbimupjUJÛ  htuiiiup 

For  Australia 

Fiir die Republik  osterreich 

3 1 . 1 2.  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 

& 

7/  m 

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 

3a  PenyÔJiKKS  5-bJirapna 

H O L 3 8 0 / 52 

Official  Journal  of  the  European  Communities 

31.12. 94 

For Canada 

Pour le Canada 

za Republiku Hrvatsku 

For the Republic of Cyprus 

L O V J L C V^ 

ZaCeskou  Republiku 

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 

For the Republic of Malta 

.1 

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 

3 1 . 1 2 . 94 

Official  Journal  of  the  European  Communities 

No  L 380/59 

Pela Republica  Portuguesa 

Pentru  Romania 

1  t 

•* 

3a  POCCHP.CKVD  $eflepaiiHD 

Za  Slovensku  republiku 

v ^' 

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 / ^ A A_ 

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  y x p a ï i iy 

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  T HE  ENERGY  CHARTER  TREATY 

TABLE  OF  CONTENTS 

1.  Annex  EM 

Energy  materials  and  products 
(In  accordance  with  Article  1  (4)) 

2.  Annex  NI 

Non-applicable  energy  materials  and  products  for  definition  of  'economic  activity  in  the  energy 
sector' 
(In  accordance  with  Article  1  (5)) 

3.  Annex  TRM 

3 

Notification  and  phase-out  (TRIMs) 
(In  accordance  with  Article  5  (4)) 

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)) 

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)) 

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)) 

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)) 

8.  Annex  P 

Special  sub-national  dispute  procedure 
(In  accordance  with  Article  27  (3)  (i)) 

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)) 

10.  Annex  TFU 

Provisions  regarding 
Former  Union  of  Soviet  Socialist  Republics 
(In  accordance  with  Article  29  (2)  (b)) 

trade  agreements  between  States  which  were  constituent  parts  of  the 

11.  Annex  D 

Interim  provisions  for  trade  dispute  settlement 
(In  accordance  with  Article  29  (7)) 

Page 

65 

66 

66 

67 

67 

68 

68 

68 

70 

73 

74 

No  L  380/64 

Official  Journal  of  the  European  Communities 

31.  12.  94 

12.  Annex B 

Formula  for allocating  charter costs 
(In accordance with Article  37  (3)) 

'  *" 

78 

\ 

p>gc 

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 

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No  L 380/65 

1.  Annex  EM 

ENERGY  MATERIALS  A ND  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 

.1 

2844  30. 

2844  50 

Spent  (irradiated)  fuel  elements  (cartridges)  of  nuclear  reactors. 

2845  10 
Coal,  natural  gas,  petroleum  and  petroleum  products,  electrical  energy 

Heavy  water  (deuterium  oxide). 

2701 

2702 

Coal,  briquettes,  ovoids  and  similar  solid  fuels  manufactured  from  coal. 

Lignite,  whether  or  not  agglomerated  excluding  jet. 

2703 

Peat  (including  peat  litter),  whether  or  not  agglomerated. 

2704 
2705 

2706 

2707 

2708 

2709 

2710 

Coke  and  semi-coke  of  coal,  of  lignite  or  of  peat,  whether  or  not  agglomerated;  retort  carbon. 
Coal  gas,  water  gas,  producer  gas  ' nd  similar  gases,  other  than  petroleum  gases  and  other 
gaseous  hydrocarbons. 

Tar  distilled  from  coal,  from  lignite  or  from  peat,  and  other  mineral  tars,  whether  or  not 
dehydrated  or  partially  distilled,  including  reconstituted  tars. 

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). 

Pitch  and  pitch  coke,  obtained  from  coal  tar  or  from  other  mineral  tars. 

Petroleum  oils  and  oils  obtained  from  bituminous  minerals,  crude. 

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  3 8 0 / 66 

Official  Journal  of  the  European  Communities 

3 1.  12.  94 

In  gaseous  state: 

—  natural  gas, 

—  other. 

2713 

2714 

2715 

Petroleum  coke,  petroleum  bitumen  and  other  residues  of  petroleum  oils  or  of  oils  obtained 
from  bituminous  minerals. 

Bitumen  and  asphalt,  natural;  bituminous  or  oil  shale  and  tar  sands;  asphaltites  and  asphaltic 
rocks. 

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 
'ECONOMIC  ACTIVITY  IN  T HE  ENERGY  SECTOR' 

PRODUCTS 

FOR  DEFINITION  OF 

(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 
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2> 

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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 
trade-related 
paragraph  1,  may  apply  during  the  phase-out  period  the  same  trade-related  investment  measure  to  a 
new  investment  where: 

investment  measure  notified  pursuant 

to  a 

(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-

LIST  OF  C O N T R A C T I NG  PARTIES  REQUIRING  AT  LEAST  T H R EE  SEPARATE  AREAS  TO  BE 

4.  Annex  N 

INVOLVED  IN  A  TRANSIT 

^>  , 

(In  accordance  with  Article  7  (10)  (a)) 

•1.  Canada  and  United  Sûtes  of  America 

5.  Annex  VC 

LIST  OF  C O N T R A C T I NG 

PARTIES  W H I CH  HAVE  MADE  VOLUNTARY  BINDING 

COMMITMENTS  IN  RESPECT  OF  ARTICLE  10  (3) 

(In  accordance  with  Anicle  10  (6)) 

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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 

(In  accordance  with  Article  26  (3)  (b)  (i)) 

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 

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 

(In  accordance  with  Articles  26  (3)  (c)  and  27  (2)) 

1.  Australia 

2.  Canada 

3.  Hungary 

4.  Norway 

PART  I 

1.  Canada 

2.  Australia 

8.  Annex  P 

SPECIAL  SUB-NATIONAL  DISPUTE  PROCEDURE 

(In  accordance  with  Article  27  (3)  (i)) 

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P A R Tn 

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. 

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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 

XV 

Special  provisions  relating  to  cinematographic  films 

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 
Annex  I 

Relating  to  Article  XXVI 
Notes  and  supplemenury  provisions  (related  to  above  GATT  Articles) 

Safeguard  action  for  development  purposes 

Undcrsunding  regarding  notification,  consulution,  dispute  settlement  and  surveillance. 

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(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. 

12. 

13. 

14. 

15. 

Technical  assisunce  to  other  Parties 

Special  and  differential  treatment  of-developing  countries 

The  Committee  on  Technical  Barriers  to  Trade 

Consulution  and  dispute  setdement 

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. 

12. 

13. 

14. 

16. 

17. 

18. 

19.2. 

19.4. 

Export  subsidies  on  certain  primary  products 

Consulutions 

Conciliation,  dispute  setdement  and  authorized  counter  measures 

Developing  countries 

Committee  on  Subsidies  and  Countervailing  Measures 

Conciliation 

Dispute  setdement 

Accepunce  and  accession 

Entry  into  force 

•à 

19.5.  (a) 

National 

legislation 

19.6. 

Review 

19.7. 

v.  Amendments 

19.8. 

19.9. 

-.Withdrawal 

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. 

18. 

Application  of  Annexes  (second  sentence) 

Institutions  (Committee  on  Customs  Valuation) 

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19. 

20. 

21. 

22. 

24. 

Consulution 

Dispute  settlement 

Special  and  differential  treatment  of  developing  countries 

Accepunce  and  accession 

Entry  into  force 

25.1. 

National 

legislation 

26. 

27. 

28. 

29. 

30. 

31. 

Review 

Amendments 

Withdrawal 

Secreuriat 

Deposit 

Registration 

Annex  II 

Technical  Committee  on  Customs  Valuation 

Annex  III  Ad  hoc  panels 

Protocol 
to 
conforming 

the  Agreement  on  Implemenution  of  Article  VII  (except  1.7  and  1.8;  with  necessary 
introductory  language) 

(v)  Agreement  on  Import  Licensing  Procedures 

1.4. 

2.2. 

4. 

5. 

General  provisions  (last  sentence) 

Automatic  import  licensing  (footnote  2) 

Institutions,  consulution  and  dispute  setdement 

Final  provisions  (except  paragraph  2) 

(vi)  Agreement  on  Implementation  of Artide  VI  (Antidumping  Code) 

13. 

14. 

15. 

16. 

Developing  countries 

Committee  on  Anti-Dumping  Practices 

Consulution,  conciliation  and  dispute  settlement 

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. 

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-I 

-$ 

(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. 

10.  Annex  TFU 

PROVISIONS  REGARDING  TRADE  AGREEMENTS  BETWEEN  STATES  W H I CH  WERE 
C O N S T I T U E NT  PARTS  OF  T HE  FORMER  U N I ON  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 
in  advance  of  its  entry  into  force  for  other  Sûtes  or  Regional 
subparagraph  (a),  sufficiendy 
Economic  Integration  Organizations  which  have  signed  or  acceded 
(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. 

to  the  Treaty 

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 

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(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, 
is  afforded 
provided 
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. 

that  such  notification  ukes  place  and 

the  opportunity  for  such  consulution 

to 

limit  the  non-conformities 

Contracting  Parties  which  are  or  become  parties  to  an  agreement  described  in  Article  29  (2)  (b) 
undertake 
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. 

the  provisions  of 

thereof  with 

11.  Annex  D 

INTERIM  PROVISIONS  FOR  T R A DE  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 
the  measure 
the  provisions  of  Article  5  or  29  and  of  the  GATT  and  Related 
complained  of  and  specify 
Instruments  that  it  considers  relevant.  Requests  to  consult  pursuant  to  this  paragraph  shall  be 
notified 
the  Contracting  Parties  of  pending 
consulutions  that  have  been  notified. 

to  the  Secreuriat,  which  shall  periodically  inform 

the  fullest  extent  possible 

indicate 

to 

(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. 

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"y 

m 

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). 

(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  u ke  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. 

(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. 

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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. 

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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 
into 
Contraaing  Party  a  written  request  that  the v. non-complying  Contracting  Party  enter 
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 
injured 
reached  agreement  within  30  days  after  delivery  of  the  request  for  negotiations,  the 
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. 

the  nature  and 

6.  (a)  Before  suspending  such  obligations  the  injured  Contracting  Pany  shall  inform  the  non-complying 
Contracting  Party  of 
the  non-complying 
level  of 
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). 

its  proposed  suspension.  If 

(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 

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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 
for  any 
Budget  Scale  of  Assessment  (supplemented  by 
Contraaing  Parties  which  are  not  UN  members). 

theoretical  contributions 

information  on 

2.  The  contributions  shall  be  adjusted  as  necessary  to  ensure  that  the  t o ul  of  all  Contracting  Parties' 

contributions  is  100 %. 

13.  Annex  PA 

LIST  Op  SIGNATORIES  W H I CH  DO  N OT  ACCEPT  T HE  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 

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No  L  3 8 0 / 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 

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 

I n 

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31.  12.  94 

'Each  Contracting  Party  shall  ensure  that  within  its  jurisdiction  it  has'and  enforces  such  laws  as  are 
necessary  and  appropriate 
in  economic 
activity  in  the  energy  sector.' 

to  address  unilateral  and  concerted  anti-competitive  c o n d ua 

Article  6  (2) 

COUNTRY:  ALBANIA 

C O U N T R Y:  BELARUS 

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 
the 
Parliament  by  the  end  of  1996.  In  these  laws  Albania  intends  to 
include  provisions  on  anti-competitive  conduct. 

to  be  submitted 

is  planned 

law 

to 

Phase-out 

1  January  1998. 

C O U N T R Y:  ARMENIA 

Sector 

All  energy  seaors. 

Level  of  government 

National. 

Description 

At  present  a  S u te  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. 

C O U N T R Y:  AZERBAIJAN 

Sector 

All  energy  seaors. 

Level  of  government 

National. 

Description 

Sector 

All  energy  sectors. 

Level  of  government 

National. 

Description 

Anti-monopoly  legislation  is  at  the  stage  of  elaboration. 

Phase-out 

1  January  2000. 

C O U N T R Y:  GEORGIA 

Sector 

All  energy  sectors. 

Level  of  government 

National. 

Description 

in  Georgia  and 

Laws  on  demonopolization  are  at  present  at  the  stage  of  elabor 
the 
ation 
monopoly 
energy 
resources,  which  restricts  the  possibility  of  competition  in  the 
energy  and  fuel  complex. 

that  is  why  the  Sute  has  so  far 

for  practically  all  energy 

sources  and 

Phase-out 

1  January  1999. 

C O U N T R Y:  KAZAKHSTAN 

Sector 

All  energy  seaors. 

Level  of  government 

National. 

Description 

law  on  development  of  competition  and 

restriction  of 
The 
monopolistic  activities  (No  656  of  11  June  1991)  has  been 
adopted,  but  is  of  a  general  nature.  It  is  necessary  to  develop 
the 
in  particular  by  means  of  adopting 
relevant  amendments  or  adopting  a  new  law. 

legislation 

funher, 

Phase-out 

1  January  1998. 

The  anti-monopoly  legislation  is  at  the  stage  of  elaboration. 

COUNTRY:  KYRGYZSTAN 

Phase-out 

1  January  2000. 

Sector 

All  energy  sectors. 

31.  12.  94 

Official  Journal  of  the  European  Communities 

No  L  3 8 0 / 81 

Level  of  government 

National. 

Description 

COUNTRY:  T HE  RUSSIAN  FEDERATION 

Sector 

All  energy  seaors. 

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. 

Level  of  government 

The  Federation. 

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 
law  on  energy  which  will  also  be 
Parliament.  The  draft 
submitted  to  the  Parliament  in  1995  will  cover  issues  on  demon 
opolization  and  development  of  competition 
the  energy 
seaor. 

in 

Description 

in  the  Russian  Federation  but  other 

A  comprehensive  framework  of  anti-monopoly  legislation  has 
legal  and 
been  created 
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 
the  Ofiice  of  Proteaion  of 
is 
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. 

C O U N T R Y:  R O M A N IA 

Phase-out 

1  January  1998. 

Sector 

^^ 

COUNTRY:  TAJIKISTAN 

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. 

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 
temporarily 
Tajikistan, 
suspended. 

the  jurisdiction  of 

the  law  has  been 

Phase-out 

31  December  1996. 

Phase-out 

31  December  1997. 

No  L  3 8 0 / 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. 

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 
the 
activities  of  enterprises  in  the  energy  sector. 

in  Article  1  (3)  does  not  extend 

to 

Further  development  of  legislation  and  regulations  is  needed 
which  would  regulate  anti-monopoly  c o n d ua  of  enterprises  in 
the  economic  activity  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 
initiate  appropriate  enforcement  action.  The  notifying  Contracting  Party  shall 
competition  authorities 
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 
the  notifying  Contraaing  Party  and  shall  accord  full  consideration 
Contracting  Party  in  deciding  whether  or  not  to  initiate  enforcement  action  with  respect  to  the  alleged 
anti-competitive  conduct  identified 
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.' 

in  the  notification.  The  notified  Contracting  Party  shall  inform 

the  request  of 

to 

C O U N T R Y:  ALBANIA 

Level  of  government 

Sector 

All  energy  sectors. 

Level  of  government 

National. 

Description 

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. 

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. 

Phase-out 

31  December  1997. 

Phase-out 

1  January  1999. 

C O U N T R Y:  ARMENIA 

Sector 

All  energy  sectors. 

C O U N T R Y:  AZERBAIJAN 

Sector 

All  energy  sectors. 

Level  of  government 

National. 

31.  12.  94 

Official  Journal  of  the  European  Communities 

No  L 380/83 

Description 

Level  of  government 

Anti-monopoly  authorities 
adoption  of  anti-monopoly  legislation. 

shall  be  esublished  after 

the 

National. 

Phase-out 

1  January  2000. 

C O U N T R Y:  BELARUS 

Sector 

All  energy  sectors. 

Level  of  government 

National. 

Description 

shall  be 
Anti-monopoly 
adoption  of  anti-monopoly  legislation. 

authorities 

esublished 

after 

the 

Phase-out 

1  January  2000. 

C O U N T R Y:  GEORGIA 

Sector 

All  energy  sectors. 

Level  of  government 

National. 

Description 

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 

is  responsible  for  the  control  of 
The  Ministry  of  Economy 
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. 

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  1998. 

Phase-out 

1  January  1999. 

C O U N T R Y:  KAZAKHSTAN 

Sector 

All  energy  sectors. 

Level  of  government 

National. 

Description 

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. 

in 
An  Anti-monopoly  Committee 
from 
Kazakhsun,  but 
legislative  and  organizational  points  of  view, 
to 
elaborate  an  effective  mechanism  handling  the  complaints  on 
anti-competitive  conduct. 

improvement,  both 

its  activity  needs 

esublished 

in  order 

been 

has 

Phase-out 

1  January  1998. 

C O U N T R Y:  KYRGYZSTAN 

Sector 

All  energy  sectors. 

The  institutions  charged  with  the  enforcement  of  competition 
rules  are  provided 
law  on  proteaion  of 
competition  which  is  scheduled  to  be  adopted  during  1994. 

the  draft 

for 

in 

The  draft 
enforcement,  suning  with  the  date  of  its  publication. 

also  provides  a  period  of  nine  months 

for 

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  3 8 0 / 84 

Official  Journal  of  the  European  Communities 

31.  12. 94 

C O U N T R Y:  TAJIKISTAN 

C O U N T R Y:  UZBEKISTAN 

Sector 

All  energy  seaors. 

Level  of  government 

National. 

Description 

has 

Tajikisun 
and 
competition,  but  institutions  to  enforce  competition  rules  are  in 
the  suge  of  development. 

demonopolization 

laws  on 

adopted 

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 

31  December  1997. 

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 

C O U N T R Y:  BULGARIA 

Sector 

All  energy  seaors. 

Level  of  government 

National. 

Description 

regulating 

It  is  necessary  to  adopt  a  set  of  laws  on  energy,  including 
licensing  procedures 
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. 

transit.  During  a 

Phase-out 

31  December  1999. 

Sector 

All  energy  seaors. 

Level  of  government 

National. 

Description 

Bulgaria  has  no  laws  regulating  transit  of  energy  materials  and 
products.  An  overall  restruauring 
in  the  energy 
seaor,  including  development  of  institutional  framework,  legis 
lation  and  regulation. 

is  ongoing 

Phase-out 

The  transitional  period  of  seven  years  is  necessary  to  bring  the 
legislation  concerning 
transit  of  energy  materials  and 
products  in  full  compliance  with  this  provision. 

the 

1  July  2001. 

COUNTRY:  BELARUS 

COUNTRY:  GEORGIA 

Sector 

All  energy  sectors. 

Level  of  government 

National. 

Description 

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. 

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 

31  December  1998. 

Phase-out 

1  January  1999. 

3 1.  12.  94 

Official  J o u r n al  of  the  European  Communities 

No  L  3 8 0 / 85 

C O U N T R Y:  H U N G A RY 

COUNTRY:  POLAND 

Sector 

Electricity  industry. 

Level  of  government 

National. 

Description 

According  to  the  current  legislation  esublishment  and  operation 
of  high-voluge  transmission  lines  is  a  S u te  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  u k en 
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. 

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. 

O 

Phase-out 

31  December  1996. 

Phase-out 

31  December  1995. 

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.' 

C O U N T R Y:  AZERBAIJAN 

Phase-out 

Sector 

All  energy  sectors. 

Level  of  government 

(I 

National. 

Description 

1  January  2000. 

Sector 

All  energy  seaors. 

COUNTRY:  G E O R G IA 

Relevant  legislation  is  at  the  suge.of  elaboration. 

Level  of  government 

Phase-out 

1  January  2000. 

National. 

Description 

C O U N T R Y:  BELARUS 

Relevant  legislation  is  at  the  suge  of  preparation. 

Sector 

All  energy  sectors. 

Level  of  government 

National. 

Description 

Phase-out 

1  January  1997. 

COUNTRY:  KAZAKHSTAN 

Sector 

Relevant  legislation  is  at  the  stage  of  elaboration. 

All  energy  sectors. 

No  L  3 8 0 / 86 

Official  Journal  of  the  European  Communities 

3 1.  12.  94 

Level  of  government 

National. 

Description 

C O U N T R Y:  KYRGYZSTAN 

Sector 

^ 

All  energy  seaors. 

Level  of  government 

The  bill  on  foreign  investments  is  at  the  stage  of  authorization 
approval  with  the  aim  to  adopt  it  by  the  Parliament  in  autumn 
1994. 

National. 

Description 

Phase-out 

1  July  2001. 

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.' 

C O U N T R Y:  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. 

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 
shelf  or  exclusive 

sea,  continenul 

territorial 

the 
from 
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. 

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. 

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 
investment;' 

in  connection  with 

that 

C O U N T R Y:  BULGARIA 

Description 

Sector 

All  energy  seaors. 

Level  of  government 

National. 

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. 

Phase-out 

1  July  2001. 

f 

31.  12.  94 

Official  Journal  of  the  European  Communities 

No  L  3 8 0 / 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.' 

C O U N T R Y:  ARMENIA 

Level  of  government 

Sector 

All  energy  sectors. 

Level  of  government 

National. 

Description 

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 
their 
publishing. 

is  no  praaice  of 

there 

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 
information  centre 
either. There  is  a  plan  to  esublish  such  a  centre  in  1994  to  1995. 
Technical  assisunce  is  required. 

is  no 

Phase-out 

31  December  1998. 

Phase-out 

31  December  1996. 

COUNTRY:  KAZAKHSTAN 

Sector 

All  energy  seaors. 

C O U N T R Y:  AZERBAIJAN 

Level  of  government 

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 
is 
concentrated  in  various  organizations. 

information 

Phase-out 

31  December  1997. 

C O U N T R Y:  BELARUS 

Sector 

All  energy  sectors. 

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 
the  existing  practice  will 
to  be  sources  of  law.  To  change 
require  a  long  transitional  period. 

Phase-out 

1  July  2001. 

COUNTRY:  MOLDOVA 

Sector 

All  energy  sectors. 

Level  of  government 

National. 

No  L  3 8 0 / 88 

Official  Journal  of  the  European  Communities 

3 1.  12.  94 

Description 

It  is  necessary  to  esublish  enquiry  points. 

Phase-out 

1  January  1998^-

Phase-out 

31  December  1995. 

C O U N T R Y:  T HE  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. 

C O U N T R Y:  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. 

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 

international  practice 

Improvement  of  the  present  transparency  of  laws  up  to  the  level 
to 
of 
establish  enquiry  points  providing  information  about  laws,  regu 
lations, 
and 
and 
sundards  of  general  application. 

is  required.  Ukraine  will  have 

judicial  decisions 

administrative 

rulings 

Phase-out 

1  January  1998. 

'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.' 

Article  22  (3) 

COUNTRY:  T HE  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, 
fuel  bundles  containing  uranium  of 
non-Czech  origin,  will  be  licensed. 

including  uranium 

Phase-out 

1  July  2001. 

31.  12. 94 

Official  Journal  of  the  European  Communities 

No  L  380/89 

DECISIONS  WITH  RESPECT  TO  THE  ENERGY  CHARTER  TREATY 

ANNEX  2 

The  European  Energy  Charter  Conference  has  adopted 
the  following  Decisions: 

1.  With  respect  to  the  Treaty  as  a  whole 

the 

the  event  of  a  conflict  between 

In 
treaty 
(the 
concerning  Spitsbergen  of  9  February  1920 
Svalbard  Treaty)  and  the  Energy  Charter  Treaty,  the 
the 
treaty  concerning  Spitsbergen  shall  prevail 
extent  of 
the 
the  conflict,  without  prejudice 
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 
extent,  Article  16  and  Part  V  of  the  Energy  Charter 
Treaty  shall  not  apply. 

to 
to 

(  fl 

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 
shall  ensure  without 
exception  that  this  process  is  not  applied  in  a  manner 
which  discriminates  among  investments  of  investors  of 
other  Contracting  Parties. 

the  Russian  Federation 

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 

the  rights 
granted  pursuant  to  ÂVticle  14 (1)  to  investors 
of  other  Contracting  Parties  with  respect  to 
their  investments; 

impair 

the 

its  area  of 

(c)  the  Contracting  Party  ensures  that  investments 
in 
investors  of  all  other 
Contracting  Parties  are  accorded,  with  respect 
to  transfers,  treatment  no  less  favourable  than 
that  which 
investments  of 
investors  of  any  other  Contraaing  Party  or  of 
any 
the  most 
favourable. 

third  State,  whichever 

it  accords 

to 

is 

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 
this 
Decision. 

in  accordance  with 

restrictions 

4.  For 

the  avoidance  of  doubt,  nothing 

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. 

in 

5.  For  the  purposes  of  this  Decision: 

are 

current 

practice, 

transactions' 

payments 
'current 
connected  with  the  movement  of  goods,  services  or 
persons  that  are  made  in  accordance  with  normal 
international 
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. 

and 

not 

do 

(b)  such  restrictions  do  not  affect  current  trans-

attiorts;  and 

4.  With  respect  to  Article  14 (2) 

(*)  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. 

the  efficiency  of 

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 
transfers  of  investment  returns  and  shall  in  any  case 
convertible 
guarantee 
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 

its  procedures 

transfers 

freely 

in  a 

such 

for 

No  L 380/90 

Official  Journal  of  the  European  Communities 

31.  12. 94 

than 

that  which 

less  favourable 
to 
investments  of  investors  of  any  other  Contracting 
Party  or  of  any  third  State,  whichever  is  the  most 
favourable. 

it  accords 

5.  With respect  to Articles  24 (4) (a) and  25 

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 

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 

(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. 

Official  Journal  of  the  European  Communities 

No  L  3 8 0 / 91 

ANNEX  3 

E N E R GY  C H A R T ER  P R O T O C OL 

on  energy  efficiency  and  related  environmental  aspects 

PREAMBLE 

T HE  C O N T R A C T I NG  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, 

I 

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  s e a or  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 

for 

consequently 

1. 
the 
This  Protocol  defines  policy  principles  for 
promotion  of  energy  efficiency  as  a  considerable  source 
reducing  adverse 
of  energy  and 
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 
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. 

for 

2. 

The  objectives  of  this  Protocol  are: 

(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 
the  organization  of 
through 
efficient  energy  markets  and  a  fuller  reflection  of 
environmental  costs  and  benefits;  and 

(c)  the  fostering  of  cooperation  in  the  field  of  energy 

efficiency. 

Article  2 

Definitions 

As  used  in  this  Protocol: 

'Charter'  means 
the  European  Energy  Charter 
adopted  in  the  Concluding  Document  of  the  Hague 
Conference  on  the  European  Energy  Charter  signed 
a t T h e ' H a g ue  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 
has 
consented  to  be  bound  by  this  Protocol  and  for  which 
the  Protocol  is  in  force. 

Integration  Organization  which 

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, 

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 

a  defined 
objective  at  the  lowest  cost  or  to  achieve  the  greatest 
benefit  at  a  given  cost. 

achieve 

to 

energy 

to 
efficiency'  means 
6.  'Improving 
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. 

acting 

( 

7.  'Environmental  impact'  means  any  effect  caused  by  a 
given  activity  on  the  environment,  including  human 
health  and  safety, 
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. 

fauna, 

flora, 

PART  II 

POLICY  PRINCIPLES 

Article  3 

Basic  principles 

Contracting  Parties  shall  be  guided  by  the  following 
principles: 

1.  Contracting  Parties  shall  cooperate  and,  as  appro 
and 
laws  and 

priate, 
implementing  energy  efficiency  policies, 
regulations. 

developing 

other 

assist 

each 

in 

2.  Contracting  Parties  shall  establish  energy  efficiency 
regulator)' 

policies 
frameworks  which  promote,  inter  alia: 

appropriate 

legal 

and 

and 

(a)  efficient 

functioning 

of  market  mechanisms 
including  market-oriented  price  formation  and  a 
fuller 
costs  and 
benefits; 

reflection  of  environmental 

31.  12.  94 

Official  Journal  of  the  European  Communities 

No  L  380/93 

(b)  reduction  of  barriers  to  energy  efficiency, 

thus 

Article  5 

stimulating  investments ; 

Strategies  and  policy  aims 

(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 
the  energy 
benefit  of  energy  efficiency 
they  shall,  to  the  best  of  their 
this  end 
cycle.  To 
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. 

throughout 

4.  Energy 

policies 

efficiency 

both 
short-term  measures  for  the  adjustment  of  previous 
practices  and  long-term  measures  to  improve  energy 
efficiency  throughout  the  energy  cycle. 

include 

shall 

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 
private  sector.  They  shall  encourage  action  by  energy 
utilities, 
specialized 
agencies,  and  close  cooperation  between  industry  and 
administrations. 

the  vital  role  of 

responsible 

authorities 

and 

i(j| 

7.  Cooperative  or  coordinated  action  shall 

into 
account  relevant  principles^ adopted 
international 
agreements,  aimed  at  protection  and  improvement  of 
the  environment, 
to  which  Contraaing  Parties  are 
parties. 

take 

in 

8.  Contracting b Parties  shall  take  full  advantage  of  the 
international  or 

work  and  expertise  of  competent 
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. 

for 

Contracting  Parties  shall  formulate  strategies  and  policy 
aims 
thereby 
improving  energy  efficiency  and 
reducing  environmental  impacts  of  the  energy  cycle  as 
appropriate 
their  own  specific  energy 
conditions.  These  strategies  and  policy  aims  shall  be 
transparent  to  all  interested  parties. 

in  relation 

to 

Article  6 

Financing  and  financial  incentives 

1.  Contracting  Parties  shall  encourage  the  implemen 
financing 
tation  of  new  approaches  and  methods  for 
environmenul 
energy  efficiency 
protection 
venture 
joint 
arrangements 
and 
external 
investors 
'Third  Party 
Financing'). 

and  energy 
such 
energy 
referred 

related 
as 
users 
as 
to 

investments, 
between 

(hereinafter 

shall 

endeavour 

Contracting  Parties 

2. 
advantage  of  and  promote  access 
markets  and  existing  international  financing 
in  order  to  facilitate 
efficiency  and 
energy  efficiency. 

take 
to  private  capital 
institutions 
investments  in  improving  energy 
to 

in  environmental  protection 

related 

to 

legal  obligations,  provide 

Contracting  Parties  may,  subject  to  the  provisions 
3. 
of  the  Energy  Charter  Treaty  and  to  their  other  inter 
national 
financial 
incentives  to  energy  users  in  order  to  facilitate  market 
technologies,  products 
penetration  of  energy  efficiency 
and  services.  They  shall  strive  to  do  so  in  a  manner  that 
both  ensures  transparency  and  minimizes  the  distortion 
of  international  markets. 

fiscal  or 

Article  7 

Promotion  of  energy  efficient  technology 

the  provisions  of 

the  Energy 
1.  Consistent  with 
Charter  Treaty,  Contraaing  Parties  shall  encourage 
commercial 
in  energy  efficient 
and  environmentally  sound  technologies,  energy  related 
services  and  management  practices. 

trade  and  cooperation 

Contracting  Parties  shall  promote  the  use  of  these 
practices 

2. 
technologies, 
throughout  the  energy  cycle. 

and  management 

services 

Article  8 

Domestic  programmes 

In  order 

1. 
according 

to  achieve 

formulated 
to  Article  5,  each  Contracting  Party  shall 

the  policy  aims 

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. 

PART  ffl 

INTERNATIONAL  COOPERATION 

These  programmes  may  include  activities  such  as 

2. 
the: 

(a)  development  of 

long-term 

energy  demand 

and 

supply  scenarios  to  guide  decision-making; 

(b)  assessment 

of 

the 

energy, 

environmenul 

and 

economic  impact  of  actions  u k e n; 

Article  9 

Areas  of  cooperation 

The  cooperation  between  Contracting  Parties  may  u ke 
any  appropriate  form.  Areas  of  possible  cooperation  are 
listed  in  the  Annex. 

(c)  definition  of  sundards  designed  to  improve  the  effi 
to 
ciency  of  energy  using  equipment,  and  efforts 
harmonize 
trade 
distortions; 

internationally 

avoid 

these 

to 

(d)  development  and  encouragement  of  private  initiative 

and  industrial  cooperation,  including  joint  ventures; 

(e)  promotion  of  the  use  of  the  most  energy  efficient 
that  are  economically  viable  and  en-

technologies 
vironmcnully  sound; 

(f)  encouragement 

for 
investments  in  energy  efficiency  improvements,  such 
as  Third  Party  Financing  and  co-financing; 

approaches 

innovative 

of 

(g)  development  of  appropriate  energy  balances  and 
daubases,  for  example  with  d au  on  energy  demand 
at  a  sufficiently  deuiled 
level  and  on  technologies 
for  improving  energy  efficiency; 

(h)  promotion 

of 

of 

the 

advisory 

and 
creation 
consuluncy  services  which  may  be  operated  by 
public  or  private 
industry  or  utilities  and  which 
efficiency 
provide 
programmes  and  technologies,  and  assist  consumers 
and  enterprises; 

informaticm 

energy 

about 

(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. 

In 

3. 
implementing 
programmes,  Contracting  Parties 
adequate  institutional  and  legal  infrastructures  exist. 

energy 
shall 

efficiency 
that 

ensure 

their 

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. 

The  Charter  Conference  shall  endeavour  to  adopt, 
2. 
this 
the  entry 
within  180  days  after 
review  and 
Protocol,  procedures 
provisions, 
faciliuting 
ident 
including  reporting  requirements,  as  well  as  for 
ifying  areas  of  cooperation  in  accordance  with  Article  9. 

for  keeping  under 
its 

implemenution 

into  force  of 

the 

of 

Article  11 

Secretariat  and  financing 

The  Secretariat  esublished  pursuant  to  Article  35 
1. 
of  the  Energy  Charter  Treaty  shall  provide  the  Charter 
assistance 
all  necessary 
Conference  with 
the 
performance  of 
this  Protocol  and 
its  duties  under 
provide  such  other  services  in  support  of  the  Protocol  as 
may  be  required  from  time  to  time,  subject  to  approval 
by  the  Charter  Conference. 

for 

of 

The 

costs 

the  Secretariat 

2. 
and  Charter 
Conference  arising  from  this  Protocol  shall  be  met  by 
to 
the  Contracting  Parties  to  this  Protocol  according 
their  capacity 
the 
formula  specified 
in  Annex  B  to  the  Energy  Charter 
Treaty. 

to  pay,  determined  according 

to 

31.  12. 94 

Official  Journal  of  the  European  Communities 

No  L  380/95 

Article  12 

Voting 

Charter  Treaty,  the  provisions  of  the  Energy  Charter 
Treaty  shall,  to  the  extent  of  the  inconsistency,  prevail. 

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: 

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. 

(a)  adopt  amendments  to  this  Protocol;  and 

(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 
on 
non-budgetary  matters  shall  be  taken  by  a  three-fourths 
majority  of  Contracting  Parties  pre  ent  and  voting  at  the 
such 
meeting  of 
matters  fall  to  be  decided. 

the  Charter  Conference  at  which 

consensus, 

decisions 

reached 

by 

be 

Decisions  on  budgetary  matters  shall  be  taken  by  a 
qualified  majority  of  Contracting  Parties  whose  assessed 
contributions  pursuant 
in 
combination,  at  least  three-fourths  of  the  total  assessed 
contributions. 

to  Article  11 (2)  represent, 

For  purposes  of  this  Article,  'Contracting  Parties 
2. 
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. 

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. 

Integration  Organization 
4.  A  Regional  Economic 
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. 

In  the  event  of  persistent  arrears  in  a  Contracting 
this 
that 

5. 
Party's  discharge  of 
Protocol, 
Contracting  Party's  voting  rights  in  whole  or  in  part. 

financial  obligations  under 
the  Charter  Conference  may  suspend 

Article  13 

Relation  to  the  Energy  Charter  Treaty 

1. 
of 

In  the  event  of  inconsistency  between  the  provisions 
the  Energy 

the  provisions  of 

this  Protocol  and 

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. 

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. 

Article  17 

Amendments 

1.  Any  Contracting  Party  may  propose  amendments 
to  this  Protocol. 

The 

this 
text  of  any  proposed  amendment 
2. 
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. 

to 

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 
to  the  Deposiury 
the  Secreuriat 
which  shall  submit  them  to  all  Contracting  Parties  for 
ratification,  accepunce  or  approval. 

into 

4. 
Instruments  of  ratification,  accepunce  or  approval 
of  amendments  to  this  Protocol  shall  be  deposited  with 
force 
the  Depositary.  Amendments  shall  enter 
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. 

into 
force  and  which 
this  Protocol  or  accedes 

2. 
For  each  State  or  Regional  Economic  Integration 
Organization  for  which  the  Energy  Charter  Treaty  has 
ratifies,  accepts,  or 
entered 
approves 
the 
thereto  after 
in  accordance  with 
into  force 
Protocol  has  entered 
paragraph  1,  the  Protocol  shall  enter  into  force  on  the 
the  date  of  deposit  by  such  Sute  or 
30th  day  after 
Regional  Economic 
its 
Integration  Organization  of 
approval  or 
instrument  of 
accession. 

ratification, 

accepunce, 

3. 
For  the  purposes  of  paragraph  1,  any  instrument 
deposited  by  a  Regional  - Economic  Integration  Organ 
those 
ization  shall  not  be  counted  as  additional 
deposited  by  Member  Sûtes  of  such  Organization. 

to 

Article  19 

^ 

Reservations 

No  reservations  may  be  made  to  this  Protocol. 

Article  20 

Withdrawal 

1.  At  any  time  after 
into 
force  for  a  Contracting  Party,  that  Contracting  Party 
may  give  written  notification 
to  the  Deposiury  of  its 
withdrawal  from  the  Protocol. 

this  Protocol  has  entered 

2.  Any  Contracting  Party  which  withdraws  from  the 
Energy  Charter  Treaty  shall  be  considered  as  also  having 
withdrawn  from  this  Protocol. 

to 
The  effective  date  of  withdrawal  pursuant 
3. 
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 

that  effea,  have  signed 

the  undersigned,  being  duly  auth 
In  witness  whereof 
orized 
in 
to 
English,  French,  German,  Iulian,  Russian  and  Spanish, 
of  which  every  text  is  equally  authentic,  in  one  original, 
the 
which  will  be  deposited  with 
Portuguese  Republic. 

the  Government  of 

this  Protocol 

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 

3 1 . 1 2.  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 

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« 

3 1 . 1 2 . 9 4' 

- ' /• 

; 

Official  Journal  of  the  European  Communities 

"  No L 380/101 i 

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 

f 

# 

Suoinen tasavallan puolesta 

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"*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 

Officiai ' Journal  of the  European  C o m ^^ 

wrap*- V J A : - ' ' *'  •"'•»' 

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Latvijas  Republikas  varda 

^^^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 

NbL380/10«c 

•  Official  Journal  of  the  European  Communities 

^ | ^ 3 iri 2 . v f t 4; 

Pentru Republica Moldova 

Voor het Koninkxijk der Nederlanden 

For Kongeriket Norge 

21a Rzeczpospolita Polska 

31.12,94 

.Official  Journal  of .the' European. Communities 

No L 3 8 0 / 1 0 7 ;^ 

7 • 

Pela Republica Portuguesa 

\D; 

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 

Por el Reino de Espana 

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c 

For Konungariket Sverige 

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Ftir die Schweizerische  Eidgenossenschaft 

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'31,12.94/ 

Official-Journal,  ofthe  Foiror>ean  Conununities 

No L380/109 

A3  IIOMM  TB7MKMCTOII 

Tiirkiye Cumhuriyeti adina 

TypxueHHCTaH  XexyucTHiiMH  oauimaH 

3a  Yxpaiiiy 

No L 380/110 

Official^Journal  of  the^F-ùropeari • Communities >; 

^ ^ f 3 > 1 2 ; 9 4 ^' 

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 

N ot  380/Ul; 

Illustrative  and  non-exhaustive  list  of  possible  areas  of  cooperation  pursuant  to  Article  9 

ANNEX 

Development  of  energy  efficiency  programmes, 
potentials,  and  the  development  of  energy  labelling  and  efficiency  standards. 

including 

identifying  energy  efficiency  barriers  and 

Assessment  of  die  environmental  impacts  of  the  Energy  Cycle. 

Development  of  economic,  legislative  and  regulatory  measures. 

Technology  transfer, 
rights  regimes  and  other  applicable  international  agreements. 

technical  assistance  and  industrial  joint  ventures  subjea  to  intemauonal  property 

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  N Ox  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 

L-2985 Luxembourg