Source: EURLEX
Language: en
Format: md

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 20.09.1995
COM(95) 440 final

95/0237 (AVC)

COMMUNICATION FROM THE COMMISSION

and

Proposal for a
COUNCIL AND COMMISSION DECISION

on the conclusion by the European Communities of the Energy Charter Treaty

and of the Energy Charter Protocol on energy efficiency and

related environmental aspects

(presented by the Commission)

COMMUNICATION FROM THE COMMISSION

on the conclusion by the European Communities of the Energy Charter Treaty
and of the Energy Charter Protocol on energy efficiency and
related environmental aspects

1. The Energy Charter Treaty (hereinafter referred to as "the Treaty") and the
Energy Charter Protocol on energy efficiency and related environmental aspects
("the Protocol") were signed by the European Communities and the Member States in
Lisbon on 17 December 1994. A total of 50 parties have signed the Treaty and the
Protocol.

2. In accordance with Article 45 of the Treaty, the European Communities, like 38 of the
50 signatories, have been applying the Treaty provisionally since the date of signature [(1)] .

3. The Commission hereby proposes that the Council approve the Treaty, as provided for
in Article 39 thereof, and the Protocol, as provided for in Article 15 thereof.

4. In particular, the Commission considers that conclusion of the Treaty and the Protocol
by the European Communities will mark a major step in the development of
cooperation with the countries of Central and Eastern Europe and of the Commonwealth
of Independent States. On the one hand, the Treaty will provide greater legal certainty
for investors, by giving them the benefit of national treatment, will introduce an
obligation for transparent treatment of investments and will give consumer countries
supply guarantees. At the same time the implementing procedures (Secretariat,
Ministerial Conference and recognized arbitration mechanisms) guarantee control and
introduce a process for cooperation in the energy field. This Treaty must in due course
be further strengthened by a second Treaty, currently under negotiation, on
pre-investment, aiming at extending the guarantees offered to new investors. The
Protocol in turn will provide greater protection for the environment, notably by
promoting energy efficiency.

5. Consequently, the Commission hereby submits to the Council a.proposal for a Decision
on approval of the Treaty and the Protocol by the Council and the Commission under
the EC Treaty and under the ECSC and Euratom Treaties respectively, on grounds of
simplification of procedures, as was the case with conclusion of the
European agreements. The decisions taken by the Commission under the ECSC and
Euratom Treaties require unanimous approval by the Council or approval by a qualified
majority of the Council respectively. The decision taken unanimously by the Council
under the second sentence of Article 228(2) of the EC Treaty requires the assent of the
European Parliament, as provided for by the second subparagraph of Article 228(3),
because cf the institutional implications of the Energy Charter Treaty. The decision
taken by the Commission under the ECSC Treaty also requires consultation of the
Consultative Committee.

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

2

**6.** **In view of the decisions to be taken by the Energy Charter Conference set up by the**
**Treaty, the Commission considers that appropriate procedures must be decided for**
**adoption of the Communities' position within the Energy Charter Conference. In** **line«**
**with the requirement for close cooperation reaffirmed in the Court of Justice's**
**Opinion 1/94, the Commission also** **considers** **that the positions of the Communities and**
**of the Member States must be coordinated with regard to the decisions to be taken by**
**the Energy Charter Conference in the fields for which they share responsibility. For**
**the same reason, provision must be made for them simultaneously to deposit**
**their instruments of ratification with the Depositary,** **the** **Government of the**
**Portuguese Republic.**

**7.** **The Commission therefore proposes that the Council adopt, pursuant to the EC Treaty**
**and after obtaining the assent of the European Parliament, the Decision on conclusion**
**of the Energy Charter Treaty and of the Energy Charter Protocol on energy efficiency**
**and related environmental aspects.**

**8.** **This text is also submitted to the Council as a draft Commission Decision** **on**
**conclusion of the Energy Charter Treaty and of** **the** **Energy Charter Protocol on energy**
**efficiency and related environmental aspects:**

**for assent pursuant to the ECSC Treaty, and**

**for approval pursuant to the Euratom Treaty.**

**Proposal for** **a**
**COUNCIL AND COMMISSION DECISION**

**on the conclusion by the European Communities of the Energy Charter Treaty**

**and of the Energy Charter Protocol on energy efficiency and**

**related environmental aspects**

**THE COUNCIL OF THE EUROPEAN UNION,**

**THE COMMISSION OF THE EUROPEAN COMMUNITIES,**

**Having regard to the Treaty establishing the European Coal and Steel Community, and in**
**particular Article 95 thereof,**

**Having** **regard** **to the Treaty establishing the European Community, and in particular**
**Articles 54(2), the last sentence of Article 57(2), Articles 66, 73c(2), 87, 99, 100a, 113,**
**130s(l) and 235, in conjunction with the second sentence of Article 228(2) and the second**
**subparagraph of Article 228(3)** **thereof,**

**Having regard to the Treaty establishing the European Atomic Energy Community, and in**
**particular** **the second paragraph of Article 101 thereof,**

**Having regard to the opinion of the Consultative Committee set up by the Treaty establishing**
**the European Coal and Steel Community,**

**Having regard to the proposal from the** **Commission** **[(1)]** **,**

**Having regard to the opinion of the European** **Parliament^,**

**Having regard to the approval given by the Council pursuant to Article** **101** **of the Treaty**
**establishing the European Atomic Energy Community,**

**Whereas the European Energy** **Charter** **was signed by the European Communities and by their**
**Member States on 17 December 1991;**

**Whereas on 17 December** **1994** **the European** **Coriimunities** **and their Member States signed**
**the Energy Charter Treaty and the Energy Charter Protocol on energy efficiency and related**
**environmental aspects in order to provide a secure and binding international legal framework**
**for the principles and objectives set out in that Charter;**

**Whereas the European Communities and their Member States have been applying the**
**Energy Charter Treaty provisionally by virtue of Council Decisions 94/998/EC and**
**94/1067/Euratom** **[(3)]** **since the date of signature thereof;**

**Whereas the principles and objectives of the Energy Charter Treaty are of fundamental**
**importance to Europe's future, allowing the members of the Commonwealth of**
**Independent States and the countries of Central and Eastern Europe to develop their energy**
**potential, while helping to improve security of supply;**

**(,)** **OJ No**
**(2)** **OJ No**
**(3)** **OJNo** **L 380, 31.12.1994, pp. 1 and 113.**

Whereas the principles and objectives of the Energy Charter Protocol on energy efficiency and
related environmental aspects will help provide greater protection for the environment, notably
by promoting energy efficiency;

Whereas it is necessary to consolidate the initiative and the central role of the
European Communities, by enabling the latter to participate fully in implementation of the
Energy Charter Treaty and of the Energy Charter Protocol on energy efficiency and related
environmental aspects;

Whereas conclusion of the Energy Charter Treaty and of the Energy Charter Protocol on
energy efficiency and related environmental aspects will help attain the objectives of the
European Communities;

Whereas Article 73c(2) of the EC Treaty must be used as a legal basis for this Decision since
the Energy Charter Treaty imposes certain obligations on the European Communities
regarding the movement of capital and payments between the Communities and third country
contracting parties to the Energy Charter Treaty;

Whereas the Energy Charter Treaty could affect legislative acts based on Article 235 of the
EC Treaty; whereas the Treaty has provided no powers other than those arising from the
abovementioned Article for implementation of the obligations imposed by the Treaty with
regard to cooperation in the energy field;

Whereas the Energy Charter Treaty and the Energy Charter Protocol on energy efficiency and
related environmental aspects must be approved by the European Communities;

Whereas the Energy Charter Conference established by the Energy Charter Treaty
has autonomous decision-making powers; whereas, consequently, appropriate procedures
must be provided for deciding the European Communities' position within the
Energy Charter Conference;

Whereas in order to ensure uniform external representation of the European Communities both
in the conclusion procedure and in implementing the commitments entered into by the
European Communities and the Member States, appropriate coordination procedures should
be established; whereas, to this end, provision should be made for this Decision to be
deposited with the Government of the Portuguese Republic at the same time as the
instruments of ratification of the Member States; whereas, for the same reason, the position
to be adopted by the European Communities and by the Member States must be coordinated
with regard to the decisions to be taken by the Energy Charter Conference set up by the
Treaty in the fields for which they share responsibility,

HAVE DECIDED AS FOLLOWS:

Article 1

The Energy Charter Treaty and the Energy Charter Protocol on energy efficiency and related
environmental aspects are hereby approved on behalf of the European Coal and
Steel Community, the European Community and the European Atomic Energy Community.

The texts of the Energy Charter Treaty and of the Energy Charter Protocol on energy
efficiency and related environmental aspects are attached to this Decision.

Article 2

The Chairman of the Council shall, on behalf of the European Community, deposit the
instrument of approval of the Energy Charter Treaty and of the Energy Charter Protocol
on energy efficiency and related environmental aspects with the Government of the
Portuguese Republic, in accordance with Articles 39 and 49 of the Energy Charter Treaty and
with Articles 15 and 21 of the Energy Charter Protocol on energy efficiency and related
environmental aspects. Under the same conditions, the President of the Commission shall
deposit the instruments of approval on behalf of the European Coal and Steel Community and
of the European Atomic Energy Community.

The Chairman of the Council and the President of the Commission, acting on behalf of the
European Community and the European Coal and Steel Community respectively, shall consult
with the Member States in order to ensure the simultaneous deposit of their instruments of
approval.

Article 3

The position which the European Communities and EURATOM may be required to take
within the Charter Conference with regard to decisions binding on them shall be adopted by
the Council, acting by qualified majority on a proposal from the Commission, after consulting
the European Parliament pursuant to the first subparagraph of Article 228(3) of the EC Treaty.
The position to be taken in the name of the ECSC shall be adopted by the Commission on
the basis of the Council's opinion, acting by qualified majority pursuant to Article 28 of the
ECSC Treaty.

Where the decisions to be taken by the Energy Charter Conference are binding in respect of
their respective competences, the European Communities and the Member States shall
establish a common position according to a procedure to be adopted unanimously by the
Council on the basis of a Commission proposal by 1 July 1996 at the latest, or, failing
adoption by that date, by a qualified majority on a proposal from the Commission.

Article 4

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

Done at Brussels,

For the Council For the Commission

The President The President

**<t**

**31.** **12. 94** **Official Journal of** **the** **European Communities** **No** **L** **380/3**

**FINAL ACT OF THE EUROPEAN ENERGY CHARTER CONFERENCE**

**I.** The final Plenary Session **of the European Energy**
Charter Conference **was held at Lisbon on 16 to**

17 December **1994.** **Representatives** **of** **the**
Republic of Albania, **the** Republic of Armenia,
Australia, the Republic of Austria, the Azerbaijani
Republic, the Kingdom of Belgium, the Republic
of Belarus, the Republic of Bulgaria, Canada, the
Republic of Croatia, the Republic of Cyprus, the
Czech Republic, the Kingdom of Denmark, the
Republic of Estonia, the European Communities,
the Republic of Finland, the French Republic, the
Republic of Georgia, the Federal Republic of
Germany, the Hellenic Republic, the Republic of
Hungary, the Republic of Iceland, Ireland, the
Italian Republic, Japan, the Republic of
Kazakhstan, the Republic of Kyrgyzstan, the
Republic of Latvia, the Principality of Liechtenstein, the Republic of Lithuania, the Grand
Duchy of Luxembourg, the Republic of Malta, the
Republic of Moldova, the Kingdom of the
Netherlands, the Kingdom of Norway, the
Republic of Poland, the Portuguese Republic,
Romania, the Russian Federation, the Slovak
Republic, the Republic of Slovenia, the Kingdom
of Spain, the Kingdom of Sweden, the Swiss
Confederation, the Republic of Tajikistan, the
Republic of Turkey, Turkmenistan, Ukraine, the
United Kingdom of Great Britain and Northern
Ireland, the United States of America and the
Republic of Uzbekistan (hereinafter referred to as
'the representatives') participated in the
Conference, as did invited observers from certain
countries and international organizations.

BACKGROUND

II. During the meeting of the European Council in
Dublin in June 1990, the Prime Minister of the
Netherlands suggested that ^economic recovery in
eastern Europe and the ïhçn Union of Soviet
Socialist Republics could be catalysed and accelerated by cooperation in the energy sector. This
suggestion was welcomed by the Council, which
invited the Commission of the European
Communities to study how best to implement such
cooperation. In February 1991 the Commission
proposed the concept of a European Energy
Charter.

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 Cooperation and Development to attend a conference in

**B'russels** **in July** **1991** **to launch negotiations on the**
**European Energy Charter. A number of other**
countries **and international** **organizations** **were**
invited to **attend the European Energy Charter**
Conference as observers.

Negotiations on the European Energy Charter
were completed in 1991 and the Charter was
adopted by signature of a Concluding Document
at a conference held at The Hague on 16 to 17
December 1991. Signatories of the Charter, then
or subsequently, include all those listed in Section
I, other than observers.

The signatories of the European Energy Charter
undertook:   

to pursue the objectives and principles of the
Charter and implement and broaden their
cooperation as soon as possible by negotiating
in good faith a Basic Agreement and Protocols.

The European Energy Charter Conference
accordingly began negotiations on a Basic
Agreement — later called the Energy Charter
Treaty — designed to promote east-west industrial
cooperation by providing legal safeguards in areas
such as investment, transit and trade. It also began
negotiations on Protocols in the fields of energy
efficiency, nuclear safety and hydrocarbons,
although in the last case negotiations were later
suspended until completion of the Energy Charter
Treaty.

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

THE ENERGY CHARTER TREATY

III. As a result of its deliberations the European
Energy Charter Conference has adopted the text
of the Energy Charter Treaty (hereinafter referred

**No L 380/4** **Official** **Journal of** **thé** **European Communities** **31.** **12.94**

**to as the** **Treaty*)** **which** **is** **set out in Annex 1** **and,**
**Decisions with respect thereto which are set out in**
**Annex 2, and agreed that the Treaty would be**
**open for signature at** Lisbon from **17 December**
**1994 to 16 June 1995.**

**UNDERSTANDINGS**

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

1. **With** **respect to the Treaty** as **a** whole

(a) The represenutives underline that the
provisions of the Treaty have been agreed
upon bearing in mind the specific nature
of the Treaty aiming at a legal framework
to promote long-term cooperation in a
particular sector and as a result cannot be
construed to constitute a precedent in the
context of Other international negotiations.

(b) The provisions of the Treaty do not:

(i) oblige any Contracting Party to
introduce mandatory third parry

access; or

(ii) prevent the use of pricing systems
which, within a particular category of
consumers, apply identical prices to
customers in different locations.

(c) Derogations from most favoured nation
treatment are not intended to cover

measures which are specific to an investor
or group of investors, rather than applying
generally.

2. **With** respect to Article 1 (5)

(a) It is understood that the Treaty confers no
rights to engage in economic activities
other than economic activities in the

energy sector.

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

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

(ii) construction and operation of power
generation facilities, including those
powered by wind and other
renewable energy sources;

**(iii) land** **transportation, -** **distribution,**
**storage** **and** **supply** **of** **energy**
**materials and products, e.g., by way**
**of** **transmission,** **and distribution grids**
**and pipelines or dedicated rail** **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 related
facilities, including oil rigs, oil
refineries and power generating
plants;

(vi) marketing and sale of, and trade in
energy materials* and products, e.g.,
reuil sales of gasoline; and

(vii) research, consulting, planning,
management and design activities
related to the activities mentioned

above, including those aimed at
improving energy efficiency.

3. With respect to Article 1 (6)

For greater clarity as to whether an investment
made in the area of one Contracting Party is
controlled, directly or indirectly, by an
investor of any other Contracting Party,
control of an investment means control in fact,

determined after an examination of the actual

circumstances in each situation. In any such
examination, all relevant factors should be
considered, including the investor's:

(a) financial interest, including equity interest,
in the investment;

(b) ability to exercise subsuntial influence
over the management and operation of the
investment; and

(c) ability to exercise subsuntial influence
over the selection of members of the board

of directors or any other managing body.

Where there is doubt as to whether an investor

controls, directly or indirecdy, an investment,
an investor claiming such control has the
burden of proof that such control exists.

**#**

**31.** **12. 94** **Official** **Journal,** **of the European Communities** **No L 380/5**

**4.** **With respect to Article 1 (8)**

**Consistent with Australia's foreign investment**
**policy, the establishment of a new mining or**
**raw materials processing project in Australia**
**with total investment of $A 10 million or more**
**by a foreign interest, even where that foreign**
**interest is already operating a similar business**
**in Australia, is considered as the making of a**
**new investment.**

**5. With respect to Article 1 (12)**

**The represenutives recognize the necessity for**
**adequate and effective protection of intel-**
**lectual property rights according to the highest**
**internationally-accepted sundards.**

**6. With respect to Article 5 (1)**

**The represenutives' agreement to Article 5 is**
**not meant to imply any position on whether or**
**to** **what** **extent** **the** **provisions** **of** the
**'Agreement** **on** **Trade-Related** **Investment**
**Measures' annexed to the Final Act of the**

**Uruguay** **Round** **of** **Multilateral** **Trade**
**Negotiations are implicit in Articles III and XI**
**of the** **General** **Agreement on Tariffs and**
**Trade (GATT).**

**7. With respect to Article 6**

**(a) The** **unilateral** **and** **concerted** **anti-**
**competitive conduct** **referred** **to in Article**
**6** **(2)** **are** **to** **be ' defined** **by** **each**
**Contracting Party in accordance with its**
**laws and may include** **exploiutive** **abuses.**

**(b)** **'Enforcement'** **and** **'enforces'** **include**
**action under the competition laws of** a
**Contracting Party by way of investigation,**
**legal proceeding,** **«r "administrative** **action**
**as well as by way of any decision or**
**further law granting or continuing an**
**authorization.**

**8. With respect to Article 7 (4)**

The applicable legislation would include
provisions on **environmenul** protection, land
use, safety, or technical sundards.

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

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

**abroad are** **not** **connected with investment or**

**related** **activities** **of** **investors** **from** **other**

**Contracting** **Parties** **in** **its** **area,** **such**
**programmes may be subject to constraints with**
**respect to participation in them.**

**10.** **With respect to Article 10 (4)**

**The** **supplementary** **treaty** **will** **specify**
**conditions** **for** **applying** **the** **treatment**
**described in Article 10 (3). Those conditions**
**will include,** _**inter alia,**_ **provisions relating to**
**the sale or other divestment of sute assets**

**(privatization)** **and** **to** **the** **dismantling** **of**
**monopolies (demonopolization).**

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

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

**12.** **With** **respect to Article 14 (5)**

**It is intended that a** Contracting Party which
enters into an agreement referred to in Article
14 (5) ensure that **the** conditions of such an
**agreement** are not in contradiction with that
Contracting Party's obligations under the
Articles **of Agreement** of the International
Moneury Fund.

**13.** **With respect to Article 19 (1) (i)**

**It is for each Contracting Party to decide the**
**extent to which the assessment and monitoring**
**of** **environmenul** **impacts should be subject to**
**legal requirements, the** authorities competent
to **uke** decisions in relation to such

**requirements,** and the appropriate procedures
to **be** followed.

**14.** **With respect to Articles 22 and 23**

With regard to trade in energy materials and
products governed by Article 29, that Article
specifies **the** provisions relevant to the subjects
covered by Articles 22 and 23.

15. **With respect to Article 24**

Exceptions conuined in the GATT and
Related Instruments apply between particular
Contracting Parties which are parties to the
GAIT, as recognized by Article 4. With
respect to trade in energy materials and

**No L 380/6** **Official Journal of the European Communities** **31.** **12. 94**

**products governed by Article 29, that Article**
**specifies the provisions relevant to the subjects**
**covered by Article 24.**

**16.** **With respect to Article 26 (2) (a)**

**Article 26 (2) (a) should not be interpreted to**
**require a Contracting Party to enact Part III**
**of the Treaty into its domestic law.**

**17.** **With respect to Articles 26 and 27**

The reference to treaty obligations in the
penultimate sentence of Article 10 (1) does not
include decisions taken by international organizations, even if they are legally binding, or
treaties which entered into force before 1

January 1970.

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

(a) Where a provision of GATT Ï947 or a
Related Instrument referred to in this

paragraph provides for joint action by
parties to the GATT, it is intended that
the Charter Conference uke such action.

(b) The notion 'applied on 1 March 1994 and
practised with regard to energy materials
and products by parties to GATT 1947
among themselves' is not intended to refer
to cases where **a** party to the GATT has
invoked Article XXXV of the GATT,
thereby disapplying the GATT _vis-à-vis_
another party **to** the GATT, but nevertheless applies unilaterally on a _de facto_
basis some provisions of the GATT
_vis-à-vis_ that other party to the GATT.

19. **With** **respect** **to'Article** **33**

The provisional Charter Conference should at
the earliest possible date decide how best to
give effect to the goal of Tide III of ' the
European Energy Charter that Protocols be
negotiated in areas of cooperation such as
those listed in Title III of the Charter.

20. With respect to Article 34

(a) The provisional Secreury-General should
make immediate conuct with other inter
national bodies in order to discover the

terms on which they might be willing to
undertake usks arising from the Treaty

**and** **the** **Charter.** **The** **provisional**
**Secretary-General might report back to**
**the provisional Charter Conference at the**
**meeting which Article 45 (4) requires to be**
**convened not later** **than 180** **days after the**
**opening date for signature of the Treaty.**

**(b) The Charter Conference should adopt the**
**annual budget before the beginning of the**
**financial year.**

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

The technical changes to Annexes might for
insunce include, delisting of non-signatories
or of signatories that have evinced their
intention not to ratify, or additions to Annexes
N and VC. It is intended that the Secretariat

would propose such changes to the Charter
Conference when appropriate.

**22.** **With respect to Annex TFU (1)**

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

(b) The need in general for notification of
agreements of a purely commercial nature
is not foreseen because such agreements
should not raise a question of compliance
with Article 29 (2) (a), even when they are
entered into by sute agencies. The Charter
Conference could, however, clarify for
purposes of Annex TFU which types of
agreements referred to in Article 29 (2) (b)
require notification under the Annex and
which types do not.

DECLARATIONS

V. The represenutives declared that Article 18 (2)
shall not be construed to allow the circumvention

of the application of the other provisions of the
Treaty.

VI. The representatives also noted the following
declarations that were made with respect to the
Treaty:

**f»**

31. 12. 94 Official Journal of **the** European Communities No L 380/7

**1.** **With** **respect to Article 1 (6)** **4.** With respect **to** Article **10**

**#**

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

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

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

Australia further notes that it would not be

appropriate for dispute settlement bodies esublished under the Treaty to give interpreutions
of GATT Articles III and XI in the context of

disputes between parties to the GATT or
between an investor of a party to the GATT
and another party to the GATT. It considers
that with respect to the application of Article 10
(11) between an investor and a party to the
GATT, the only issue that can be considered
under Article 26 is the issue of the awards of

arbitration in the event that a GATT panel or
the WTO dispute settlement body first esubHshes that a trade-related investment measure

maintained by the Contracting Party is inconsistent with its obligations under the GATT or
the Agreement on Trade-Related Investment
Measures.

3. With respect to Article 7

The European Communities and their Member
Sûtes and Austria, Norway, Sweden and
Finland declare that the provisions of Article 7
are subject to the conventional rules of international law on jurisdiction over submarine
cables and pipelines or, where there are no such
rules, to general international law.

They further declare that Article 7 is not
intended to affect the interpreution of existing
international law on jurisdiction over submarine
cables and pipelines, and cannot be considered
as doing so.

Canada and the United. Sûtes of America each

affirm that they will apply the provisions of
Article 10 in accordance with the following
considerations:

For the purposes of assessing the treatment
which must be accorded to investors of other

Contracting Parties and their investments, the
circumstances will need to be considered on a

case-by-case basis. A comparison between the
treatment accorded to investors of one

Contracting Party, or the investments of
investors of one Contracting Party, and the
investments or investors of another Contracting
Party, is only valid if it is made between
investors and investments in similar circum
stances. In determining whether differential
treatment of investors or investments is

consistent with Article 10, two basic factors

must be uken into account.

The first factor _is_ the policy objectives of
Contracting Parties in various fields in so far as
they are consistent with the principles of
non-discriminatiôn set out in Article 10.

Legitimate policy objectives may justify differential treatment of foreign investors or their
investments in order to reflect a dissimilarity of
relevant circumsunces between those investors

and investments and their domestic

counterparts. For example, the objective of
ensuring the integrity of a country's financial
system would justify reasonable prudential
measures with respect to foreign investors or
investments, where such measures would be
unnecessary to ensure the atuinment of the
same objectives in so far as domestic investors
or investments are concerned. Those foreign
investors or their investments would thus not be

'in similar circumsunces' to domestic investors

or their investments. Thus, even if such a
measure accorded differential treatment, it
would not be contrary to Article 10.

The second factor is the extent to which the

measure is motivated by the fact that the
relevant investor or investment is subject to
foreign ownership or under foreign control. A
measure aimed specifically at investors because
they are foreign, without sufficient countervailing policy reasons consistent with the
preceding paragraph, would be contrary to the
principles of Article 10. The foreign investor or
investment would be 'in similar circumstances'

to domestic investors and their investments, and
the measure would be contrary to Article 10.

**No L 380/8** **Official** Journal **of the European Communities** **31.12.94**

**5. With respect to Article 25** **7. With respect to Annex** G **(4)**

The European Communities and their Member
Sûtes recall that,.in accordance with Article 58
of the Treaty esublishing the European
Community:

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

(b) 'companies and firms' means companies or
firms constituted under civil or commercial

law, including cooperative societies, and
other legal persons governed by public or
private law, save for those which are
non-profitmaking.

The European Communities and their Member
Sûtes further recall that:

Community law provides for the possibility to
extend the treatment described above to

branches and agencies of companies or firms
not esubiished in one of the Member Sûtes;
and that, the application of Article 25 of the
Energy Charter Treaty will allow only those
derogations necessary to safeguard the preferential treatment, resulting from the wider
process of economic integration resulting from
the Treaties es'ublishing the European
Communities.

6. With respect to Article 40

Denmark recalls that the European Energy
Charter does not apply to Greenland and the
Faroe Islands until notice to this effect has been

received from the local governments of
Greenland and the Faroe Islands.

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

(a) The European . Communities and the
Russian Federation declare that trade in

nuclear materials between; them shall be
governed, until they reach another
agreement, by the provisions of Article 22
of the Agreement on Partnership and
Cooperation esublishing a partnership
between the European Communities and
their Member Sûtes, of the one part, and
the Russian Federation, of the other part,
signed at Corfu on 24 June 1994, the
exchange of letters atuched thereto and the
related joint declaration, and disputes
regarding such trade will be subject to the
procedures of the said Agreement.

(b) The European Communities and Ukraine
declare that, in accordance with the Partnership 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.

Until entry into force of this specific
agreement, the provisions of the Agreement
on Trade and Economic and Commercial

Cooperation between the European
Economic Community, the European
Atomic Energy Community and the Union
of Soviet Socialist Republics signed at
Brussels on 18 December 1989 shall

exclusively continue to apply to trade in
nuclear materials between them.

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

Until entry into force of this specific
agreement, the provisions of the Agreement
on Trade and Economic and Commercial

Cooperation between the European
Economic Community, the European
Atomic Energy Community and the Union
of Soviet Socialist Republics signed at

**#**

**31.** **12. 94** **Official Journal of the European Communities** **No L 380/9**

**Brussels** **on** **18** **December** **1989** **shall**

**exclusively continue to apply to trade in**
**nuclear materials between them.**

**(d) The** **European** **Communities** **and**
**Kyrgyzsun declare that, in accordance with**
**the Agreement on Partnership and** **Co-**
**operation initialled at Brussels** on **31** May
**1994,** trade in **nuclear** materials between
them shall **be** exclusively governed by the
provisions of a specific agreement to be
concluded between the European Atomic
Energy Community and Kyrgyzsun.

Until entry into force of this specific
agreement, the provisions of the Agreement
on Trade and Economic and Commercial

Cooperation between the European
Economic Community, the European
Atomic Energy Community and the Union
of Soviet Socialist Republics signed at
Brussels on 18 December 1989 shall

exclusively continue to apply to trade in
nuclear materials between them.

(e) The European Communities and Tajikistan
declare that trade in nuclear materials

between them shall be exclusively governed
by the provisions of a specific agreement to
be concluded between the European Atomic
Energy Community and Tajikisun.

Until entry into force of this specific
agreement, the provisions of the Agreement
on Trade and Economic and Commercial

Cooperation between the European
Economic Community, the European
Atomic Energy Community and the Union
of Soviet Socialist Republics signed at
Brussels on 18 December 1989 shall

exclusively continue to apply to trade in
nuclear materials between them.

**(f) The European Communities and Uzbek-**
**istan declare that trade in nuclear materials**

**between them shall be exclusively governed**
**by the provisions of a specific agreement to**
**be concluded between the European Atomic**
Energy **Community and Uzbekistan.**

Until entry into force of this specific
agreement, **the** provisions of **the** Agreement
on Trade and Economic and Commercial

Cooperation between the European
Economic Community, the European
Atomic Energy Community and the Union
of Soviet Socialist Republics signed at
Brussels on 18 December 1989 shall

exclusively continue to apply to trade in
nuclear materials between them.

THE ENERGY CHARTER PROTOCOL ON ENERGY

EFFICIENCY AND RELATED ENVIRONMENTAL

ASPECTS

VII. The European Energy Charter Conference has
adopted the text of the Energy Charter Protocol
on energy efficiency and related environmenul
aspects which is set out in Annex 3.

THE EUROPEAN ENERGY CHARTER

VIII. The provisional Charter Conference and the
Charter Conference provided for in the Treaty
shall henceforth be responsible for making
decisions on requests to sign the Concluding
Document of The Hague Conference on the
European Energy Charter and the European
Energy Charter adopted thereby.

DOCUMENrATION

XL The records of negotiations of the European
Energy Charter Conference will be deposited with
the Secreuriat.

No L 380/10 Official **Journal of the European** **Communities** **31.12.94**

Done at Lisbon on the seventeenth day of December in the year one thousand nine hundred

and ninety-four. ^

Fait à Lisbonne, le dix-sept décembre mil neuf cent quatre-vingt-quatorze.

Geschehen zu Lissabon am siebzehnten Dezember neunzehnhundertvierundneunzig.

Fatto a Lisbona il diciassettesimo giorno del mese di dicembre delPanno millenovecentonovanta
quattro.

CoBepuieHO B Jlncca6one B ceuHanunTufl neHb ziexaSpfl OûHa TUCîma
nçBHTbcoT ûeBHHOCTO «jeTBepToro rona.

Hecho en Lisboa, el diecisiete de diciembre de mil novecientos noventa y cuatro.

Udfserdiget i Lissabon, den syttende december nittenhundrede og fireoghalvfems.

'Eytve orri Ataapôva, cmç ÔéKa _enxà_ AeKenPpCou TOO éxooç x& [va] eviaKÔaia evevf}vra téaaepa.

Gedaan te Lissabon, de zeventiende december negentienhonderd vierennegentig.

Feito em Lisboa, aos dezassete de Dezembro de mil novecentos e noventa e quatro.

_**i**_

**No L** **380/11**

_*****_

**31.12.94** **Official Journal of the European Communities**

**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 Belgiens, die Deutschsprachige Gemeinschaft Belgiens, die Flamische Region, die wallonische Region
und die Region Briissel-Hauptstadt.

An iyfl PacnyÔJiiKi Benapycb

3a PenyôuHKa 5i>JirapKfl

**31.12.** **94** **Official Journal of the European Communities** **No** **L** **380/13**

For Canada

Pour le Canada

za Republiku Hrvatsku

_**a ***_ _**[(V]**_ _**[s]**_ _**[* ]**_ _**[f ]**_

For the Republic of Cyprus

L O U L C V ^

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ZaCeskou Republiku

**No L** **380/14** **Official Journal of the European Communities** **31.12.94**

**For Kongeriget Danmark**

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#### **c%**

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

**">**

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Suomen tasavallan puolesta

**-** **<**

31.12. 94 Official Journal of the European Communities No L 380/15

Pour la République française

Fur die Bundesrepublik Deutschland

Tia rr|v EXXTIVUCVI Arç^ÔKpa-ria

**No L 380/16** **Official Journal of the European Communities** **31.12.** **94**

**A Magyar Koztarsasag** **ncvében**

**Fyrir hônd** **Lyôveldisins** **islands**

_**és**_ _**[ l]**_
_*****)Uu>**_

Thar cheann na hÉireann

For Ireland

Per la Repubblica italiana

31.12. 94 Official Journal of the European Communities No L 380/17

0*CHO7t<DlC

Ka3axcTan Pecny6jiHKacunun aTuiiaH

Kupru3 PecnyôJiMxacu ynyn

Latvijas Republikas varda

**No L 380/18** **Official Journal of the European Communities** **31.** **12. 94**

**Fur** **das Furstentum** **Liechtenstein**

_**r\**_ _**\>^~\**_

Lietuvos Respublikos vardu

Pour le grand-duché de Luxembourg

For the Republic of Malta

**f**

**31.12.** **94** **Official Journal of the European Communities** **No L** **380/19**

**Pentru Republica Moldova**

*****

**A**

**H** **l** **« \**

Voor het Koninkrijk der Nederlanden

_**^**_ _**\**_
# **_V\_**

For Kongeriket Norge

**/ T W M ^**

Za Rzeczpospolita Polska

_***-f/^/***_ _**^-KèAdif**_

_**s**_

**No L** **380/20** **Official** **Journal of the European Communities** **31.12.94**

**Pela** **Republica** **Portuguesa**

**\a'**

Pentru Romania

_**I**_
_**T^-**_

3a PoccaficxyD <î>eiiepaunD

Za Slovensku republiku

_**0&*b**_ **6^4**

**31i** **12.94** **Official Journal** **of the European Communities** **No L** **380/21**

**Za Republiko Slovenijo**

**s**
###### **_mc_**

Por el Reino de Espana

For Konungariket Sverige

**N**

**'** **[1]** **Qy^** **[/]** **W-**

Fiir die Schweizerische Eidgenossenschaft

Pour la Confédération^suisse

Per la Confederazione svizzera

_**IfilCLt^-t^SW^**_

C M A,

No L 380/22 Official Journal of the European Communities 31.12.94

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Turkiye Cumhuriyeti adina

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**31.12.94** **Official Journal of** **die** **European Communities** **No L 380/23**

**For the United** **Kingdom** **of Great Britain and Northern Ireland**

_tJ-rJ/L_
.2 _**LSÇ^**_

**For** the United States of America

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**No L 380/24** **Official Journal of the European Communities** **31.** **12.** **94**

_**ANNEX 1**_

**THE ENERGY CHARTER TREATY**

**Preamble**

THE CONTRACTING PARTIES T O THIS TREATY,

Having regard to **the** Charter of Paris for a New Europe signed on 21 November 1990,

Having regard to the European Energy Charter adopted in the Concluding Document of the Hague
Conference on the European Energy Charter signed at The Hague on 17 December 1991,

Recalling that all signatories to the Concluding Document of the Hague Conference undertook to pursue
the objectives and principles of the European Energy Charter and implement and broaden their cooperation as soon as possible by negotiating in good faith an Energy Charter Treaty and Protocols, and
desiring to place the commitments contained in that Charter on a secure and binding international legal
basis;

Desiring also to establish the structural framework required to implement the principles enunciated in the
European Energy Charter;

Wishing to implement the basic concept of the European Energy Charter initiative which is to catalyse
economic growth by means of measures to liberalize investment and trade in energy;

Affirming that Contracting Parties attach the utmost importance to the effective implementation of full
national treatment and most favoured nation treatment, and that these commitments will be applied to the
making of investments pursuant to a supplementary treaty,

Having regard to the objective of progressive liberalization of international trade and to the principle of
avoidance of discrimination in international trade as enunciated in the General Agreement on Tariffs and
Trade and its Related Instruments and as otherwise provided for in this Treaty;

Determined progressively to remove technical, administrative and other barriers to trade in energy
materials and products and related equipment, technologies and services;

Looking to the eventual membership in the General Agreement on Tariffs and Trade,of those Contracung
Panics which are not currendy parties thereto and concerned to provide interim trade arrangements which
will assist those Contracting Parties and not impede their preparation for such membership;

Mindful of'the rights and obligations of certain Contracung Parties which are also parlies to the General
Agreement* op Tariffs and Trade and its Related Instruments;

Having regard to competition rules concerning mergers, monopolies, anti-competitive practices and abuse
of dominant position,

Having regard also to the Treaty on the Non-Proliferation of Nuclear Weapons, the Nuclear Suppliers
Guidelines and other international nuclear non-proliferation obligations or understandings,

Recognizing the necessity for the most efficient exploration, production, conversion, storage, transport,
distribution and use of energy;

Recalling the United Nations Framework Convention on Climate Change, the Convention on Long-Range
Transboundary Air Pollution and its protocols, and other international environmental agreements with
energy-related aspects; and

Recognizing the increasingly urgent need for measures to protect the environment, including the decommissioning of energy installations and waste disposal, and for internationally-agreed objectives and criteria
for these purposes,

**31.** **12. 94** **Official** **Journal of the European Communities** **No L 380/25**

**HAVE AGREED AS FOLLOWS:**

**PARTI**

**DEFINITIONS AND** **PURPOSE**

*****

_**Article 1**_

**Definitions**

As used in this Treaty:

'Charter' means the European Energy Charter
adopted in the Concluding Document of the Hague
Conference on the European Energy Charter signed
at The Hague on 17 December 1991; signature of
the Concluding Document is considered to be
signature of the Charter.

2. 'Contracting Party' means a State or Regional
Economic Integration Organization which has
consented to be bound by this Treaty and for which
the Treaty is in force.

3. 'Regional Economic Integration Organization'
means an organization constituted by States to
which they have transferred competence over certain
matters a number of which are governed by this
Treaty, including the authority to take decisions
binding on them in respect of those matters.

4. 'Energy materials and products', based on the
Harmonized System of the Customs Cooperation
Council and the combined nomenclature of the

European Communities, means the items included in
Annex EM.

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

.6. 'Investment' means every kind of asset, owned or
controlled directly or indirectly by an investor and
includes:

(a) tangible and intangible, and movable and
immovable, property, and any property rights
such as leases, mortgages, liens, and pledges;

**(b) a company or business enterprise, or shares,**
**stock,** **or** **other forms of equity participation in a**
**company or business enterprise, and bonds and**
**other debt of a company or business enterprise;**

(c) claims to money **and** claims **to** performance
pursuant to contract having an economic value
and associated with an investment;

(d) intellectual property;

(e) returns;

(f) any right conferred by law or contract or by
virtue of any licences and permits granted
pursuant to law to undertake any economic
activity in the energy sector.

A change in the form in which assets are invested
does not affect their character as investments and the

term 'investment' includes all investments, whether
existing at or made after the later of the date of
entry into force of this Treaty for the Contracting
Party of the investor making the investment and that
for the Contracting Party in the area of which the
investment is made (hereinafter referred to as the
'effective date') provided that the Treaty shall only
apply to matters affecting such investments after the
effective date.

'Investment' refers to any investment associated with
an economic activity in the energy sector and to
investments or classes of investments designated by a
Contracting Party in its area as 'Charter efficiency
projects' and so notified to the Secretariat.

7. 'Investor' means:

(a) with respect to a Contracting Party:

(i) a natural person having the citizenship or
nationality of or who is permanently residing
in that Contracting Party in 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;

(b) with respect to **a** 'third State', a natural person,
company or other organization which fulfils,
_mutatis_ _mutandis,_ the conditions specified in
subparagraph (a) for a Contracting Party.

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

9. 'Returns' means the amounts derived from or

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

10. 'Area' means with respect to a State that is a
Contracting Party:

(a) the territory under its sovereignty, it being
understood that territory includes land, internal
waters and the territorial sea; and

(b) subject to and in accordance with the international law of the sea: the sea, sea-bed and its
subsoil with regard to which that Contracting
Party exercises sovereign rights and jurisdiction.

With respect to a»Regional Economic Integration
Organization which is a Contracting Party, area
means the areas of the Member States of such

Organization, under the provisions contained in the
agreement establishing that Organization.

11. (a) 'GATT' means"'GATT 1947' or 'GATT 1994',
or both of them where both are applicable.

(b) 'GATT 1947' means the General Agreement on
Tariffs and Trade, dated 30 October 1947,
annexed to the Final Act Adopted at the
Conclusion of the Second Session of the

Preparatory Committee of the United Nations
Conference on Trade and Employment, as
subsequently rectified, amended or modified.

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

12.

**A party to the Agreement Establishing the World**
**Trade Organization is considered to be a party**
**to GATT 1994.**

**(d) 'Related Instruments' means, as appropriate:**

(i) agreements, arrangements or other legal
instruments, including decisions, declarations
and understandings, concluded under the
auspices of GATT **1947** as subsequently
rectified, amended or modified; or

(ii) the Agreement Esublishing the World Trade
Organization including its Annex 1 (except
GATT 1994), its Annexés 2, 3 and 4, and
the decisions, declarations and understandings related thereto, as subsequently
rectified, amended or modified.

'Intellectual property' includes copyrights and
related rights, trademarks, geographical indications,
industrial designs, patents, layout designs of integrated circuits and the protection of undisclosed
information.

13. (a) 'Energy Charter Protocol' or 'Protocol' means a

treaty, the negotiation of which is authorized
and the text of which is adopted by the Charter
Conference, which is entered into by two or
more Contracting Parties in order to
complement, supplement, extend or amplify the
provisions of this Treaty with respect to any
specific sector or category of activity within the
scope of this Treaty, or to areas of cooperation
pursuant to Title III of the Charter.

(b) 'Energy Charter Declaration' or 'Declaration'
means a non-binding instrument, the negotiation
of which is authorized and the text of which is

approved by the Charter Conference, which is
entered into by two or more Contracting Parties
to complement or supplement the provisions of
this Treaty.

14. 'Freely convertible currency [5] means a currency which
is widely traded in international foreign exchange
markets and widely used in international transactions.

_Article 2_

Purpose of the Treaty

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

**31.** **12. 94** **Official Journal of the European Communities** **No L 380/27**

**PARTE**

**COMMERCE**

_**ê**_

_**Article 3**_

**International markets**

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

_Article_ _**4**_

**Non-derogation from GATT and Related Instruments**

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

_Article-_ _5_

Trade-related investment measures

1. A Contracting Party shall not apply any traderelated investment measure that is inconsistent with the

provisions of Article III or XI of the GATT; this shall be
without prejudice to the Contracting Part/s rights and
obligations under the GATT and' Related Instruments
and Article 29.

_2._ Such measures include any investment measure
which is mandatory or enforceable under domestic law
or under any administrative ruling, or compliance with
which is necessary to obtain an advantage, and which
requires:

(a) the purchase or use by an enterprise of products of
domestic origin or from any domestic source,
whether specified in terms of particular products, in
terms of volume or value of products, or in terms of
a proportion of volume or value of its local
production", or

(b) that an enterprise's purchase or use of imported
products be limited to an amount related to the
volume or value of local products that it exports;

or which restricts:

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

**amount related to the volume or value of local**

**production that it exports;**

(d) the importation by an enterprise **of products** used in
**or** related **to** its **local production** by restricting its
access **to** foreign exchange **to** an amount related **to**
the foreign exchange inflows attributable to the
enterprise; or

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

3. Nothing in paragraph 1 shall be construed to
prevent a Contracting Party from applying the traderelated 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.

4. Notwithstanding paragraph 1, a Contracting Party
may temporarily continue to maintain trade-related
investment measures which were in effect more than 180

days before its signature of this Treaty, subject to the
notification and phase-out provisions set out in Annex
TRM.

_Article_ _6_

**Competition**

1. Each Contracting Party shall work to alleviate
market distortions and barriers to competition in
economic activity in the energy sector.

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

3. Contracting Parties with experience in applying
competition rules shall give full consideration to
providing, upon request and within available resources,
technical assistance on the development and implementation of competition rules to other Contracting Parties.

**No L 380/28** **Official Journal of the European Communities** **31.** **12. 94**

**4.** **Contracting** **Parties** **may** **cooperate,** **in** **the**
**enforcement of their competition rules by consulting and**
**exchanging information.**

**5.** **If a Contracting Party** **considers** **that any specified**
**anti-competitive conduct carried out within the area of**
**another Contracting Party is adversely affecting an**
**important interest relevant to the purposes identified in**
**this Article, the Contracting Party may notify the** other
**Contracting Party and may request that** its competition
authorities initiate **appropriate** enforcement action. The
notifying Contracting Party **shall** include in such notification sufficient information to permit the notified
Contracting Party to identify **the** anti-competitive
conduct that is the subject of the notification and shall
include an offer of such further information arid co
operation as the notifying Contracting Party*is able to
provide. The notified Contracting Party or, as the case
may be, the relevant competition authorities may consult
with the competition authorities of the notifying
Contracting Party and shall accord full consideration to
the request of the notifying Contracting Party in
deciding whether or not to initiate enforcement action
with respect to the alleged anti-competitive conduct
identified in the notification. The notified Contracting
Party shall inform the notifying Contracting Party of its
decision or the decision of the relevant competition authorities and may if it wishes inform the notifying
Contracting Party of the grounds for the decision. If
enforcement action is initiated, the notified Contracting
Party shall advise the notifying Contracting Party of its
outcome and, to the extent possible, of any significant
interim development.

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

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

_Article 7_

**Transit**

1. Each Contracting Party shall take the necessary
measures to facilitate the transit of energy materials and
products consistent with the principle of freedom of
transit and without distinction as to the origin, destination or ownership of such energy materials and
products or discrimination as to pricing on the basis of
such distinctions, and without imposing any unreasonable delays, restrictions or charges.

**2.** **Contracting Parties shall encourage relevant entities**
**to cooperate in:**

**(a) modernizing energy transport facilities necessary to**
**the transit of energy materials and products;**

**(b) the development and operation of energy** transport
facilities serving **the** areas of more than one
Contracting Party;

(c) measures to mitigate the effects of interruptions in
the supply of energy materials and products;

(d) facilitating the interconnection of energy transport
facilities.

3. Each Contracting Party undertakes that its
provisions relating to transport of energy materials and
products and the use of energy transport facilities shall
treat energy materials and products in transit in no less
favourable a manner than its provisions treat such
materials and products originating in or destined for its
own area, unless an existing international agreement
provides otherwise.

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

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

to

(a) permit the construction or modification of energy
transport facilities; or

(b) permit new or additional transit through existing
energy transport facilities,

which it demonstrates to the other Contracting Parties
concerned would endanger the security or efficiency of
its energy systems, including the security of supply.

Contracting Parties shall, subject to paragraphs 6 and 7,
secure established flows of energy materials and products
to, from or between the areas of other Contracting
Parties.

6. A Contracting Party through whose area energy
materials and products transit shall not, in the event of a

**31.** **12. 94** **Official Journal of the European Communities** **No L 380/29**

**4**

**dispute over any matter arising from that transit,**
**interrupt or reduce, permit any entity subject to its**
**control to interrupt or reduce, or require any entity**
**subject to its jurisdiaion to interrupt or reduce the**
**existing flow of energy materials and products prior to**
**the** conclusion **of the dispute resolution procedures set**
out in paragraph 7, except **where** this **is** specifically
provided for in a contract or other agreement governing
such transit or permitted in accordance with the
conciliator's decision.

7. The following provisions shall apply to a dispute
described in paragraph 6, but only following the
exhaustion of all relevant contractual or other dispute
resolution remedies previously agreed between the
Contracting Parties party to the dispute or between any
entity referred to in paragraph 6 and an entity of another
Contracting Party party to the dispute:

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

(b) Within 30 days of receipt of such a notification, the
Secretary-General, in consultation with the parties to
the dispute and the other Contracting Parties
concerned, shall appoint a conciliator. Such a
conciliator shall have experience in the matters
subject to dispute and shall not be a national or
citizen of or permanently resident in a party to the
dispute or one of the other Contracting Parties
concerned.

(c) The conciliator shall seek the agreement of the
parties to the dispute to a resolution thereof or upon
a procedure to achieve such resolution. If within 90
days of his appointment he has failed to secure such
agreement, he shall 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 jurisdiction observe any interim decision under
subparagraph (c) on tariffs, terms and conditions for
12 months following the conciliator's decision or
until resolution of the dispute, whichever is earlier.

(e) Notwithstanding subparagraph (b) the SecretaryGeneral may elect not to appoint a conciliator if in

**his judgement the dispute concerns transit that is or**
**has been the subject of the dispute resolution**
**procedures set out in subparagraphs** **(a),** **to** **(d) and**
**those proceedings have** **not** **resulted in a resolution**
**of the dispute.**

**(f)** The **Charter** **Conference** **shall** **adopt** **standard**
provisions concerning the conduct of conciliation
and the compensation of conciliators.

8. Nothing in this Article shall derogate from a
Contracting Party's rights and obligations under international law including customary international law,
existing bilateral or multilateral agreements, including
rules concerning submarine cables and pipelines.

9. This Article shall not be so interpreted as to oblige
any Contracting Party which does not have a certain
type of energy transport facilities used for transit to take
any measure under this Article with respect to that type
of energy transport facilities. Such a Contracting Party
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

(ii) the carriage through the area of a Contracting
Party of energy materials and products originating in the area of another Contracting Party
and destined for the area of that other

Contracting Party, unless the two Contracting
Parties concerned decide otherwise and record

their decision by a joint entry in Annex N. The
two Contracting Parties may delete their listing
in Annex N by delivering a joint written notification of their intentions to the Secretariat,

which shall transmit that notification to all other

Contracting Parties. The deletion shall take
effect four weeks after such former notification.

(b) 'Energy transport facilities' consist of high-pressure
gas transmission pipelines, high-voltage electricity
transmission grids and lines, crude oil transmission
pipelines, coal slurry pipelines, oil product pipelines,
and other fixed facilities specifically for handling
energy materials and products.

**No L 380/30** **Official Journal of the European Communities** **31.** **12. 94**

_**Article 8**_

**Transfer of technology**

**1.** **The Contracting Parties agree to promote access to**
**and transfer of energy technology on a commercial and**
**non-discriminatory basis to assist effective trade in**
**energy materials and products and investment and to**
**implement the objectives** of **the Charter subject to their**
**laws and regulations, and to the protection of intellectual**
**property** rights.

2. Accordingly, to the extent necessary to give effect
to paragraph 1 the Contracting Parties shall eliminate
existing and create no new obstacles to the transfer of
technology in the field of energy materials and products
and related equipment and services, subject to
non-proliferation and other international obligations.

_Article 9_

Access **to capital**

**1.** The Contracting Parties acknowledge the
importance of open capital markets in encouraging the
flow of capital to finance trade in energy materials and
products and for the making of and assisting with regard
to investments in economic activity in the energy sector
in the areas of other Contracting Parties, particularly
those with economies in transition. Each Contracting
Party shall accordingly endeavour to promote conditions
for access to its capital market by companies and
nationals of other Contracting Parties, for the purpose of
financing trade in energy materials and products and for
the purpose of investment in economic activity in the
energy sector in the areas of those other Contracting
Parties, on a basis no [1] less favourable than that which it
accords in like circumstances to its own companies and
nationals or companies and nationals of any other
Contracting Party or any third State, whichever is the
most favourable.

**2.** **A Contracting Party may adopt and maintain**
**programmes providing for access to public** **loans,** **grants,**
**guarantees** **or** **insurance** **for** **facilitating** **trade** **or**
**investment abroad. It shall make such facilities available,**
**consistent with the objectives, constraints and criteria of**
**such programmes (including any objectives, constraints**
**or criteria relating to the place of business of an**
applicant for **any such** facility **or the** place of **delivery** of
goods or services supplied **with the** support of **any** such
facility) for investments in **the** economic activity **in** the
energy sector of other Contracting Parties or for
financing trade in energy materials and products with
other Contracting Parties.,*

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

4. Nothing in this Article shall prevent:

(a) financial institutions from applying their own lending
or underwriting practices based on market principles
and prudential considerations; or

(b) a Contracting Party from taking measures:

(i) for prudential reasons, including the protection
of investors, consumers, depositors, policyholders or persons to whom a fiduciary duty is
owed by a financial service supplier; or

(ii) to ensure the integrity and stability of its
financial system and capital markets.

PART III

INVESTMENT PROMOTION AND PROTECTION

_Article 10_

Promotion, protection and treatment of investments

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

commitment to accord at all times "to investments of

investors of other Contracting Parties fair and equitable
treatment. Such investments shall also enjoy the most
constant protection and security and no Contracting
Party shall in any way impair by unreasonable or
discriminatory measures their management, maintenance,
use, enjoyment or disposal.,In no case shall such
investments be accorded treatment less favourable than

that required by international law, including treaty obli

**31.** **12. 94** **Official Journal of the European Communities** **No L 380/31**

**'^P**

**gâtions.** **Each Contracting Party shall observe any obli-**
**gations it has** **entered*** **into with an investor or an**
**investment of an investor of any other Contracting**
**Party.**

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

3. For the purposes of this Article, 'treatment' means
treatment accorded by **a** Contracting Party which is no
less favourable than that which it accords to its own

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

4. A supplementary treaty shall, subject to conditions
to be laid down therein, oblige each party thereto to
accord to investors of other parties, as regards the
making of investments in its area, the treatment
described in paragraph 3. That treaty shall be open for
signature by the States and Regional Economic Integration Organizations which have signed or acceded to
this Treaty. Negotiations towards the supplementary
treaty shall commence not later than 1 January 1995,
with a view to concluding it by 1 January 1998.

5. Each Contracting Party shall, as regards the
making of investments in its area, endeavour to:

(a) limit to the minimum the exceptions to the
Treatment described in paragraph 3;

(b) progressively remove existing restrictions affecting
investors of other Contracting Parties.

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

(b) A Contracting Party may, furthermore, at any
time make a voluntary commitment to accord to
investors of other Contracting Parties, as regards
the making of investments in some or all
economic activities in the energy sector in its area,
the treatment described in paragraph 3. Such
commitments shall be notified to the Secretariat

and listed in Annex VC and shall be binding
under this Treaty.

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

**tenance, use, enjoyment or disposal, treatment** **nô** **less**
**favourable than that which it accords to investments of**

**its own investors or of the investors of any other**
**Contracting Party or any third** **State** **and their related**
**activities** **including** **management,** **maintenance,** **use,**
**enjoyment or disposal, whichever is the most favourable.**

8. The modalities of application **of paragraph 7 in**
**relation to programmes under which a Contracting Party**
provides **grants or other financial assistance, or enters**
into contracts, for energy technology research **and** development, shall be reserved for **the** supplementary treaty
described in paragraph 4. Each Contracting Party shall
through the Secretariat keep **the** Charter Conference
informed of the modalities it applies to the programmes
described in this paragraph.

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

(a) exceptions to paragraph 2; or

(b) the programmes referred to in paragraph 8.

A Contracting Party shall keep its report up to date by
promptly submitting amendments to the Secretariat. The
Charter Conference shall review these reports periodically.

In respect of subparagraph (a) the report may designate
parts of the energy sector in which **a** Contracting Party
accords to investors of other Contracting Parties the
treatment described in paragraph 3.

In respect of subparagraph (b) the review by the Charter
Conference may consider the effects of such programmes
on competition and investments.

10. Notwithstanding any other provision of this
Article, the treatment described in paragraphs 3 and 7
shall not apply to the protection of intellectual property;
instead, the treatment shall be as specified in the corresponding provisions of the applicable international
agreements for the protection of intellectual property
rights to which the respective Contracting Parties are
parties.

11. For the purposes of Article 26, the application by
a Contracting Party of a trade-related investment

**No L 380/32** **Official** **Journal** **of the European Communities** **31.** **12. 94**

**measure as described in Article 5 (1) and (2) to an**
**investment of an investor of another Contracting Party**
**existing at the time of such application shall, subject to**
**Article 5 (3) and (4), be considered a breach of an obli-**
**gation of the former Contracting Party under this part.**

**12.** **Each Contracting Party shall ensure that its**
**domestic law provides effective means for the** assertion
**of** claims **and the enforcement of rights with respea to**
**investments,** **investment** **agreements,** **and** investment
authorizations.

              - _Article_ _11_

**Key personnel**

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

2. A Contracting Party shall permit investors of
another Contracting Party which have investments in its
area, and investments **of** such investors, to employ any
key person of the investor's or the investment's jchoice
regardless of nationality and citizenship provided that
such key person has been permitted to enter, stay and
work in the area of the former Contracting Party and
that the employment concerned conforms to the terms,
conditions and time limits of the permission granted to
such key person.

_Article 12_

**Compensation for losses**

**1.** Except where Article 13 applies, an investor of any
Contracting Party which suffers a loss with respect to
any investment in the area of another Contracting Party
owing to war or other armed conflict, state of national
emergency, civil disturbance, or other similar event in
that area, shall be accorded by the latter Contracting
Party, as regards restitution, indemnification, compensation or other settlement, treatment which is the .most
favourable of that which that Contracting Party accords
to any other investor, whether its own investor, the
investor of any other Contracting Party, or the investor
of any third State.

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

**(a) requisitioning of** **its** **investment or part thereof** by **the**
**latter's forces or** **authorities;** **or**

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

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

_Article 13_

**Expropriation**

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

(a) for a purpose which is in the public interest;

(b) not discriminatory;

(c) carried out under due process of law; and

(d) accompanied by the payment of prompt, adequate
and effective compensation.

Such compensation shall amount to the fair market value
of the investment expropriated at the time immediately
before the expropriation or impending expropriation
became known in such a way as to affect the value of the
investment (hereinafter referred to as the 'valuation
date').

Such fair market value shall at the request of the investor
be expressed in a freely convertible currency on the basis
of the market rate of exchange existing for that currency
on the valuation date. Compensation shall also include
interest at a commercial rate established on a market

basis from the date of expropriation until the date of
payment.

2. The investor affected shall have a right to prompt
review, under the law of the Contracting Party making
the expropriation, by a judicial or other competent and
independent authority of that Contracting Party, of its
case, of the valuation of its, investment, and of the
payment of compensation, in accordance with the principles set out in paragraph **1.**

**31.** **12. 94** **Official Journal of the European Communities** **N o L 380/33**

**3.** **For the avoidance of doubt, expropriation shall**
**include** **situations where» a Contracting Party** **expro-**
**priates the assets of a company or enterprise in its area in**
**which an investor of any other Contracting Party has an**
**investment,** **including through the ownership of shares.**

_Article_ _**14**_

**Transfers related to investments**

**1.** Each Contracting Party shall with respect to
investments in its area of investors of any other
Contracting Party guarantee the freedom of transfer into
and out of its area, including the transfer of:

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

(b) returns;

(c) payments under a contract, including amortization
of principal and accrued interest payments pursuant
to a loan agreement;

(d) unspent earnings and other remuneration of
personnel engaged from abroad in connection with
that investment;

(e) proceeds from the sale or liquidation of all or any
part of an investment;

(f) payments arising out of the settlement of a dispute;

(g) payments of compensation pursuant to Articles 12
and 13.

2. Transfers pursuant to paragraph 1 shall be effected
without delay and (except in case of a return in kind) in
a freely convertible currency. N

3. Transfers shall be made at the market rate of

exchange existing on the date of transfer with respect to
spot transactions in the currency to be transferred. In the
absence of a market for foreign exchange, the rate to be
used will be -the most recent rate applied to inward
investments or the most recent exchange rate for
conversion of currencies into special drawing rights,
whichever is more favourable to the investor.

4. Notwithstanding paragraphs 1 to 3, a Contracting
Party may protect the rights of creditors, or ensure
compliance with laws on the issuing, trading and dealing
in securities and the satisfaction of judgements in civil,
administrative and criminal adjudicatory proceedings,
through the equitable, non-discriminatory, and good
faith application of its laws and regulations.

**5.** **Notwithstanding paragraph 2, Contracting Parties**
**which are** **Sûtes** **that were constituent parts of the**
**former Union of Soviet Socialist Republics may provide**
**ih agreements concluded between them that** **transfers,** **of**
**payments shall be made** **in** **the currencies of such**
**Contracting Parties, provided that such agreements do**
**not treat investments in their areas of investors of other**

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

6. Notwithstanding **subparagraph 1 (b), a Contracting**
Party may **restrict the transfer of a return in kind in**
circumstances where the Contracting **Party is permitted**
pursuant to Article 29 (2) (a) or the GATT **and Related**
Instruments to restrict or prohibit the exportation **or the**
sale for export of the product constituting **the return** in
kind; provided that a Contracting Party **shall** permit
transfers of returns in kind to be effected **as** authorized

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

_Article_ _15_

**Subrogation**

1. If a Contracting Party or its designated agency
(hereinafter referred to as the 'Indemnifying Party')
makes a payment under an indemnity or guarantee given
in respect of an investment of an investor (hereinafter
referred to as the 'Party Indemnified') **in the** area of
another Contracting Party (hereinafter referred to **as** the
'Host Part/), the Host Party shall recognize:

(a) the assignment to the Indemnifying Party of **all** the
rights and claims in respect of such investment; and

(b) the right of the Indemnifying Party to exercise all
such rights and enforce such claims by virtue of
subrogation.

2. The Indemnifying Party shall be entitled in all
circumstances to:

(a) the same treatment in respect of the rights and claims
acquired by it by virtue of the assignment referred to
in paragraph 1; and

(b) the same payments due pursuant to those rights and
claims,

as the Party Indemnified was entitled to receive by virtue
of this Treaty in respect of the investment concerned.

**No L 380/34** **Official Journal of the European Communities** **31.** **12. 94**

**3.** **In any proceeding pursuant to Article 26, a**
**Contracting** **Parry** **shall** **not** **assert as a** **defence,**
**counterclaim, right of** **set-off** **or for any other reason,**
**that indemnification or other compensation for all or**
**part of the alleged damages has been received or will** be
**received pursuant to an insurance or guarantee** contract.

_Article 16_

**Relation to other agreements**

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

1. nothing in Part III or V of this Treaty shall be
construed to derogate from any provision of such
terms of the other agreement or from any right to
dispute resolution with respect thereto under that
agreement; and

2. nothing in such terms of the other agreement shall be
construed to derogate from any provision of Part III
or V of this Treaty or from any right to dispute
resolution with respect thereto under this Treaty;

where any such provision is more favourable to the
investor or investment.

_Article 17_

**Non-application of Part III in certain circumstances**

Each Contracting Party reserves the right to deny the
advantages of this part to:

1. a legal entity if citizens or nationals of a third State
own or control such entity and if that entity has no
substantial business activities in the area of the

Contracting Party in which it is organized; or

2. an investment, if the denying Contracting Party establishes that such investment is an investment of an

investor of a third State with or as to which the

denying Contracting Party:

(a) does not maintain a diplomatic relationship; or

(b) adopts or maintains measures that:

(i) prohibit transactions with investors of that
State; or

(ii) would be violated or circumvented if the
benefits of this part were accorded to
investors of that State or to their investments.

PART **rv**

MISCELLANEOUS PROVISIONS

_Article 18_

Sovereignty over energy resources

1. The Contracting Parties recognize State sovereignty and sovereign rights over energy resources. They
reaffirm that these must be exercised in accordance with

and subject to the rules of international law.

2. Without affecting the objectives of promoting
access to energy resources, and exploration and development thereof on a commercial basis, the Treaty shall
in no way prejudice the rules in Contracting Parties
governing the system of property ownership of energy

resources.

3. Each State continues to hold in particular the rights
to decide the geographical areas within its area to be
made available for exploration and development of its

energy resources, 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 exploration and exploitation, and to regulate the environmental and safety aspects of such exploration, development and reclamation within its area, and to
participate in such exploration and exploitation, _inter_
_alia,_ through direct participation by the government or
through State enterprises.

4. The Contracting Parties undertake to facilitate
access to energy resources, _inter_ _alia,_ by allocating in a
non-discriminatory manner on the basis of published
criteria authorizations, licences, concessions and
contracts to prospect and explore for or to exploit or
extract energy resources.

**31.** **12. 94** **Official Journal of the European Communities** **No L 380/35**

_**Article 19**_

**Environmental aspects**

**1.** **In pursuit of sustainable development and taking**
**into account its obligations under those international**
**agreements concerning the environment to which it is**
**party, each Contracting** **Party-** **shall strive to** minimize **in**
**an economically efficient manner harmful environmental**
**impacts occurring either within or outside its area from**
all operations **within the energy cycle in its area, taking**
proper account of safety. In doing so each Contracting
Party shall act in a cost-effective manner. In its policies
and actions each Contracting **Party** shall strive to take
precautionary measures to prevent or minimize environmental degradation. The Contracting Parties agree that
the polluter in the areas of Contracting Parties, should,
in principle, bear the cost of pollution, including transboundary pollution, with due regard to the public
interest and without distorting investment in the energy
cycle or international trade. Contracting Parties shall
accordingly:

(a) take account of environmental considerations
throughout the formulation and implementation of
their energy policies;

(b) promote market-oriented price formation and a
fuller reflection of environmental costs and benefits

throughout the energy cycle;

(c) having regard to Article 34 (4), encourage cooperation in the attainment of the environmental

objectives of the Charter and cooperation in the field
of international environmental standards for the

energy cycle, taking into account differences in
adverse effects and abatement costs between

Contracting Parties;

(d) have particular regard to*- improving energy efficiency, to developing and using renewable energy
sources, to promoting the use of cleaner fuels and to
employing technologies and technological means that
reduce pollution;

(e) promote the collection and sharing among
Contracting Parties of information on environmentally sound and economically efficient energy
policies and cost-effective practices and. technologies;

(f) promote public awareness of the environmental
impacts of energy systems, of the scope for the
prevention or abatement of their adverse environmental impacts, and of the costs associated with
various prevention or abatement measures;

**(g) promote and cooperate in the research, development**
**and application of energy efficient and** **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 environmental programmes and standards and on the
implementation of those programmes and standards;

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

2. At the request of one or more Contracting Parties,
disputes concerning the application or interpretation of
provisions of this Article shall, to the extent that
arrangements for the consideration of such disputes do
not exist in other appropriate international fora, be
reviewed by the Charter Conference aiming at a
solution.

3. For the purposes of this Article:

(a) 'energy cycle' means the entire energy chain,
including activities related to prospecting for, exploration, production, conversion, storage, transport,
distribution and consumption of the various forms of
energy, and the treatment and disposal of wastes, as
well as the decommissioning, cessation or closure of
these activities, minimizing harmful environmental
impacts;

(b) 'environmental impact' means any effect caused by a
given activity on the environment, including human
health and safety, flora, fauna, soil, air, water,
climate, landscape and historical monuments or
other physical structures or the interactions among
these factors; it also includes effects on cultural
heritage or socio-economic conditions resulting from
alterations to those factors;

**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 administrative rulings of general application which affect trade
in energy materials and products are, in accordance with
Article 29 (2) (a), among the measures subject to the
transparency disciplines of the GATT and relevant
Related Instruments.

2. Laws, regulations, judicial decisions and administrative rulings of general application made effective by
any Contracting Party, and agreements in force between
Contracting Parties, which affect other matters covered
by this Treaty shall also be published promptly in such a
manner as to enable Contracting Parties and investors to
become acquainted with them. The provisions of this
paragraph shall not require any Contracting Party to
disclose confidential information which would impede
law enforcement or otherwise be contrary to the public
interest or would prejudice the legitimate commercial
interests of any investor.

3. Each Contracting Party shall designate one or more
enquiry points to which requests for information about
the abovementioned laws, regulations, judicial decisions
and administrative rulings may be addressed and shall
communicate promptly such designation to the Secretariat which shall make it available on request.

_Article 21_

Taxation

1. Except as otherwise provided in this Article,
nothing in this Treaty shall create rights or impose obligations with respect to taxation measures of the
Contracting Parties. In the event of any inconsistency
between this Article and any other provision of the
Treaty, this Article shall prevail to the extent of the
inconsistency.

2. Article 7 (3) shall apply to taxation measures other
than those on income or on capital, except that such
provision shall not apply to:

**(a) an advantage accorded by** **a** **Contracting Party**
**. pursuant** **to the tax provisions of any convention,**
**agreement or arrangement described in subparagraph**
**(7) (a) (ii); or**

**(b) any taxation measure aimed at** ensuring **the** effective
collection **of** taxes, except **where** the measure of a
Contracting Party arbitrarily discriminates against
energy materials and products originating in, or
destined for the **area** of **another** Contracting Party
or arbitrarily restricts benefits accorded pursuant to
Article 7 (3).

3. Article 10 (2) and (7) shall apply to taxation
measures of the Contracting Parties other than those on
income or on capital, except that such provisions shall
not apply to:

(a) impose most favoured nation obligations with respect
to advantages accorded by â Contracting Party
pursuant to the tax provisions of any convention,
agreement or arrangement described in subparagraph
(7) (a) (ii) or resulting from membership of any
Regional Economic Integration Organization; or

(b) a n / taxation measure aimed at ensuring the effective
collection of taxes, except where the measure
arbitrarily discriminates against an investor of
another Contracting Party or arbitrarily restricts
benefits accorded under the investment provisions of
this Treaty.

4. Article 29 (2) to (6) shall apply to taxation
measures other than those on income or on capital.

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

(b) Whenever an issue arises pursuant to Article 13,
to the extent it pertains to whether a tax
constitutes an expropriation or whether a tax
alleged to constitute an expropriation is discriminatory, the following provisions shall apply:

(i) the investor or the Contracting Party alleging
expropriation shall refer the issue of whether
the tax is an expropriation or whether the tax
is discriminatory to the relevant competent
tax authority. Failing such referral by the
investor or the Contracting Party, bodies
called upon to settle disputes pursuant to
Article 26 (2) (c) or 27 (2) shall make a
referral to the relevant competent tax authorities;

**31.** **12. 94** **Official Journal of the European Communities** **No L 380/37**

**(ii) the competent tax authorities shall, within a**
**period of six months of such referral, strive**
**to resolve the issues so referred. Where**

**non-discrimination issues are** **.concerned,** **the**
**competent tax authorities shall apply the**
**non-discrimination** **provisions of the relevant**
**tax convention or, if there is no non-discrimi-**
**nation** **provision** **in** **the** **relevant** **tax**
**convention applicable to the tax or no such**
**tax convention** **is in force between the**

**Contracting Parties concerned, they shall**
**apply** **the** **non-discrimination** **principles**
**pursuant** to **the Model Tax** Convention on
**Income** and Capital **of the** Organization for
Economic Cooperation and Development;

(iii) bodies called upon to settle disputes pursuant
to Article 26 (2) (c) or 27 (2) may take into
account any conclusions arrived at by the
competent tax authorities regarding whether
the tax is an expropriation. Such bodies shall
take into account any conclusion's arrived at
within the six-month period prescribed in
subparagraph (b) (ii) by the competent tax
authorities regarding whether the tax is
discriminatory. Such bodies may also take
into account any conclusions arrived at by
the competent tax authorities after the expiry
of the six-month period;

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

6. For the avoidance of doubt, Article . 14 shall not
limit the right of a Contracting Party to impose or
collect a tax by withholding or other means.

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 representatives.

(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.

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

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

5. For the purposes of this Article, 'entity' includes
any enterprise, agency or other organization or individual.

**No L 380/38** **Official Journal of the European Communities** **31.** **12. 94**

_**Article 23**_

**Observance by** **sub-national** **authorities**

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

2. The dispute settlement provisions in Parts II, _IV_
and V of this Treaty may be invoked in respect of
measures affecting the observance of the Treaty by,a
Contracting Party which have been taken by regional or
local governments or authorities within the area of the
Contracting Party.

_Article 24_

Exceptions

1. This Article shall not apply to Articles 12, 13
and 29.

2. The provisions of this Treaty other than:

(a) those referred to in paragraph 1 ; and

(b) with respect to subparagraph (i), Part III of the
Treaty;

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

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

(ii) essential to the-^acquisition or distribution of energy
materials and products in conditions of short supply
arising from causes outside the control of that
Contracting Party, provided that any such measure
shall be consistent with the principles that;

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

(B) any such measure that is inconsistent with this
Treaty shall be discontinued as soon as the
conditions giving rise to it have ceased to exist;

(iii) designed to benefit investors who are aboriginal
people or socially or economically disadvantaged

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

**(A) has no significant impact on that** Contracting
**Party's economy; and**

**(B) does not discriminate between** investors of an)
**other Contracting Party and** investors of thai
Contracting Party **not** included among those
for whom the measure is intended;

provided that no such measure shall constitute s
disguised restriction on economic activity in the energy
sector, or arbitrary or unjustifiable discriminatior
between Contracting Parties or between investors oi
other interested persons of Contracting Parties. Such
measures shall be duly motivated and shall not nullify oi
impair any benefit one or more other Contracting Partie;
may reasonably expect pursuant to this Treaty to ar
extent greater than is strictly necessary to the stated end

3. The provisions of this Treaty other than those
referred to in paragraph 1 shall not be construed tc
prevent any Contraaing Party from taking any measure
which it considers necessary:

(a) for the protection of its essential security interest
including those:

(i) relating to the supply of energy materials anc
products to a military establishment; or

(ii) taken in time of war, armed conflict or othe
emergency in international relations;

(b) relating to the implementation of national policie
respecting the non-proliferation of nuclear weapon
or other nuclear explosive devices or needed to fulfi
its obligations pursuant to the Treaty on th>
Non-Proliferation of Nuclear Weapons, the Nuclea
Suppliers Guidelines, and other international nuclea
non-proliferation obligations or understandings; or

(c) for the maintenance of public order.

Such measure shall not constitute a disguised restrictio
on transit.

4. The provisions of this Treaty which accord mo:
favoured nation treatment shall not oblige an

**31.** **12. 94** **Official Journal of the European Communities** **No L 380/39**

**Contracting Parry to extend to the investors of any other**
**Contracting Party any preferential treatment:**

**(a) resulting from its membership of a free-trade area or**
**customs union; or**

**(b)** **which** **is accorded by** **a** **bilateral** **or multilateral**
**agreement** **concerning** **economic** **cooperation**
**between** **Sûtes** **that were constituent parts** of **the**
**former Union of Soviet Socialist Republics pending**
**the establishment of their mutual economic relations**

**on a definitive basis.**

_Article 25_

**Economic Integration Agreements**

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

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

**2.** **For the purposes of paragraph 1, 'EIA' means an**
**agreement substantially liberalizing,** _**inter**_ _**alia,**_ **trade and**
**investment,** **by providing for the absence or elimination**
of **substantially all discrimination between** or among
parties **thereto** **through** the elimination of existing
discriminatory measures and/or **the** prohibition of new
or more discriminatory measures, either at the entry into
force of that agreement or on the basis of a reasonable
time frame.

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

PART V

DISPUTE SETTLEMENT

_Article 26_

**Settlement of disputes between an investor** and a
**Contracting Party**

1. Disputes between a Contracting Party and an
investor of another Contracting Party relating to an
investment of the latter in the area of the former, which
concern an alleged breach of an obligation of the former
under Part III shall, if possible, be settled amicably.

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

(a) to the courts or administrative tribunals of the
Contracting Party party to the dispute;

(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 international arbitration or conciliation in accordance

with the provisions of this Article.

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

(ii) For the sake . of transparency, each
Contracting Party that is listed in Annex ID
shall provide a written statement of its
policies, practices and conditions in this
regard to the Secretariat no later than the
date of the deposit of its instrument of ratification, acceptance or approval in accordance
with Article 39 or the deposit of its
instrument of accession in accordance with

Article 41.

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

4. In the event that an investor chooses to submit the

dispute for resolution under 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 the Settlement of Investment
Disputes between States and Nationals of other
States opened for signature at Washington, 18
March 1965 (hereinafter referred to as the 'Icsid

**No L 380/40** **Official Journal of the European Communities** **31.** **12. 94**

**Convention'), if the Contracting Party of the**
**investor and the Contraaing Party party to the**
**dispute are both parties to the** **Icsid** **Convention;**

**or**

**(ii) the** **International** **Centre** **for** **Settlement** **of**
**Investment Disputes, established pursuant to the**
**Convention referred to in subparagraph (a) (i),**
**under the rules governing the Additional Facility**
**for the Administration of Proceedings by the**
**Secretariat of the Centre (hereinafter referred to**
as **the** 'Additional Facility **Rules'),** if **the**
Contracting **Party** **of** the investor or **the**
Contracting Party party to **the** dispute, but not
both, is a party to the Icsid Convention;

(b) a sole arbitrator or _ad hoc_ arbitration tribunal established under the Arbitration Rules of the United

Nations Commission on International Trade Law

(hereinafter referred to as 'Uncitral'); or

(c) an arbitra] proceeding under the Arbitration Institute
of the Stockholm Chamber of Commerce.

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:

(i) written consent of the parties to a dispute for
purposes of Chapter II of the Icsid
Convention and for purposes of the
Additional Facility Rules;

(ii) an 'agreement in writing' for purposes of
Article II of **the** United Nations Convention

on the Recognition and Enforcement of
Foreign Arbitral Awards, done at New York,
10 June 1958 (hereinafter referred to as the
'New Yorl$ Convention'); and

(iii) 'the parties to a contract (to) have agreed in
writing' for the purposes of Article 1 of the
Uncitral Arbitration Rules.

(b) Any arbitration pursuant to this Article shall at
the request of any party to the dispute be held in
a State that is a party to the New York
Convention. Claims submitted to arbitration

hereunder shall be considered to arise out of a

commercial relationship or transaction for the
purposes of Article I of that Convention.

6. A tribunal established pursuant to paragraph 4 shall
decide the issues in dispute in accordance with this

**Treaty and applicable rules and principles of inter-**
**national** **law^**

**7.** **An investor other than a natural person which has**
**the nationality of a Contracting Party party to the**
**dispute on the date of the consent in writing referred to**
**in paragraph 4 and which, before a dispute between it**
**and that Contracting Party arises, is controlled by**
**investors of another Contracting Party, shall for the**
**purpose of Article 25 (2) (b) of the Icsid Convention be**
**treated as a 'national of another Contracting State' and**
**shall for the purpose of Article 1 (6)** of **the** Additional
Facility Rules be treated **as a** 'national of another State'.

8. The awards of arbitration, which may include an
award of interest, shall be final and binding upon the
parties to the dispute. An award of arbitration
concerning **a** measure of a sub-national government or
authority of the disputing Contracting Party shall
provide that the Contracting Party may pay monetary
damages in lieu of any other remedy granted. Each
Contracting Party shall carry out without delay any such
award and shall. make provision for the effective
enforcement in its area of such awards.

_Article 27_

**Settlement of disputes between Contracting Parties**

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

2. If a dispute has not been settled in accordance with
paragraph 1 within **a** reasonable period of time, either
party thereto may, except as otherwise provided in this
Treaty or agreed in writing by the Contracting Parties,
and except as concerns the application or interpretation
of Article 6 or Article 19 or, for Contracting Parties
listed in Annex LA, the last sentence of Article 10 (1),
upon written notice to the other party to the dispute
submit the matter to an _ad hoc_ tribunal pursuant to this
Article.

3. Such an _ad hoc_ arbitral tribunal shall be constituted

as follows:

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

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

**31.** **12. 94** **Official Journal of the European Communities** **No L 380/41**

_**•9**_

**Party parry to the dispute shall appoint one member.**
**If the appointment is not made within the time limit**
**prescribed, the Contracting Party having instituted**
**the proceedings may, within 90 days of the receipt of**
**the written notice referred to in paragraph 2, request**
**that the appointment be made in accordance with**
**subparagraph (d).**

**(c) A third member, who may not be a. national or**
**citizen of a Contraaing Party party to the dispute,**
**shall be appointed by the Contracting Parties parties**
**to the dispute. That member shall be the President** of
the tribunal. If, within 150 **days** of **the receipt** of **the**
notice referred to in paragraph 2, the Contracting
Parties are unable to agree on the appointment of **a**
third member, that **appointment shall be made,** in
accordance with subparagraph (d), at the request of
either Contracting Party submitted within 180 days
of the receipt of that notice.

(d) Appointments requested to be made in accordance
with this paragraph shall be made by the SecretaryGeneral of the Permanent Court of International

Arbitration within 30 days of the receipt of a request
to do so. If the Secrecary-General is prevented from
discharging this task, the appointments shall be made
by the First Secretary of the Bureau. If **the** latter, in
turn, is prevented from discharging this task, the
appointments shall be made by the most senior
deputy.

(e) Appointments made in accordance with
subparagraphs (a) to (d) shall be made with regard
to the qualifications and experience, particularly in
matters covered by this Treaty, of the members to be
appointed.

(f) In the absence of an agreement to the contrary
between the Contracting Parties, the Arbitration
Rules of Uncitral shall govern, except to the extent
modified by the Contracting Parties parties to the
dispute or by the arbitrators. The tribunal shall take
its decisions by a majority vote of its members.

**(g) The tribunal shall decide the dispute in accordance**
**with this Treaty and applicable rules and principles**
**of international law.**

**(h) The arbitral award shall be final and binding upon**
**the Contracting Parties parties to the dispute.**

**(i) Where, in making an award, a tribunal finds that a**
**measure of a regional or local government or**
**-** **authority** **within the area** of **a** Contracting Party
listed in Part I of Annex P is not in conformity with
this Treaty, either party to the dispute may invoke
the provisions of Part II of Annex P.

(j) The expenses of the tribunal, including the remuneration of its members, shall be borne in equal shares
by the Contracting Parties parties to the dispute. The
tribunal may, however, at its discretion direct that a
higher proportion of the costs be paid by one of the
Contracting Parties parties to the dispute.

(k) Unless the Contracting Parties parties to the dispute
agree otherwise, the tribunal shall sit in The Hague,
and use the premises and facilities of the Permanent
Court of Arbitration.

(1) A copy of thé award shall be deposited with the
Secretariat which shall make it generally available.

_Article 28_

**Non-application of Article 27 to certain disputes**

A dispute between Contracting Parties with respea to
the application or interpretation of Article 5 or 29 shall
not be settled pursuant to Article 27 unless the
Contracting Parties parties to the dispute so agree.

PART VI

TRANSITIONAL PROVISIONS

_Article 29_

Interim provisions on trade-related matters

1. The provisions of this Article shall apply to trade in
energy materials and products while any Contracting
Party is not a party to the GATT and Related
Instruments.

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

**No L 380/42** **Official Journal of** **the** **European Communities** **31.** **12. 94**

**selves, as if all Contracting Parties were parties** **to**
**GATT 1947 and Related Instruments.**

**(b) Such trade of a Contracting Party which is a State**
**that was a constituent part of the former Union of**
**Soviet** **Socialist** **Republics** **may** **instead** **be**
**governed, subjea to the provisions of Annex**
**TFU, by an agreement between two or more such**
**Sûtes,** **until 1 December 1999 or the admission** of
that Contraaing Party to **the** GATT, whichever is
the earlier.

(c) As concerns trade between any two parties to the
GATT, subparagraph (a) shall not apply if either
of those parties is not a party to GATT 1947.

3. Each signatory to this Treaty, and each State or
Regional Economic Integration Organization acceding
to this Treaty, shall on the date of its signature or of its
deposit of its instrument of accession provide to the
Secretariat a list of all tariff rates and other charges
levied on energy materials and products at the time of
importation or exportation, notifying the level of such
rates and charges applied on such date of signature or
deposit. Any changes to such rates or other charges shall
be notified to the Secretariat, which shall inform the
Contracting Parties of such changes.

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

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

(b) in the case of the exportation of energy materials
and products, and that of their importation if the
Contracting Party is not a party to the GATT, above
the level most recently notified to the Secretariat,
except as permitted by the provisions made
applicable by subparagraph 2 (a).

5. A Contracting Party may increase such tariff rate
or other charge above the level referred to in paragraph
4 only if:

(a) in the case of a rate or other charge levied at the
time of importation, such action is not inconsistent

**with the applicable provisions of the GATT other**
**than** **those,** **provisions of GATT 1947 and Related**
**Instruments listed in Annex G and the corresponding**
**provisions of GATT 1994 and Related Instruments;**

**or**

**(b) it has, to the fullest extent practicable under its legis-**
**lative procedures, notified the Secretariat of its**
**proposal for such an increase, given other interested**
**Contraaing** **Parties** **reasonable** **opportunity** for
consultation **with** respect **to** its **proposal,** and
accorded consideration to any **representations** from
such Contraaing Parties.

6. Signatories undertake to commence negotiations
not later than 1 January 1995 with **a** view to concluding
by 1 January 1998, as appropriate in the light of any
developments in the world trading system, **a** text of an
amendment to this Treaty which shall, subject to
conditions to be laid down therein, commit each
Contracting Party not to increase such tariffs or charges
beyond the level prescribed under that amendment.

7. Annex D shall apply to disputes regarding
compliance with provisions applicable to trade pursuant
to this Article and, unless both Contracting Parties agree
otherwise, to disputes regarding compliance with Article
5 between Contracting Parties at least one of which is
not a party to the GATT, except that Annex D shall not
apply to any dispute between Contracting Parties, the
substance of which arises under an agreement that:

(a) 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.

_Article 30_

**Developments in international trading arrangements**

Contracting Parties undertake that in the light of the
results of the Uruguay Round of Multilateral Trade
Negotiations embodied principally in the Final Act
thereof done at Marrakesh, 15 April 1994, they will
commence consideration not later than 1 July 1995 or
the entry into force of this Treaty, whichever is the later,
of appropriate amendments to this Treaty with a view to
the adoption of any such amendments by the Charter
Conference.

**31.** **12. 94** **Official Journal of the European Communities** **No L 380/43**

**such temporary suspension be extended or that any**
**further temporary suspension not previously listed in**
**Annex T be introduced, the decision on** **a** **request to**
**amend Annex** **T** **shall** **be** **made** **by the** **Charter**
**Conference.**

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

(a) of **the** implementation of any measures listed in its
Annex T and of its general progress to full
compliance;

(b) of the progress it expects to make during the next 12
months towards full compliance with its obligations,
of any problem it foresees and of its proposals for
dealing with that problem;.

(c) of the need for technical assistance to facilitate
completion of the stages set out in Annex T as
necessary for the full implementation of this Treaty,
or to deal with any problem notified pursuant to
subparagraph (b) as well as to promote other
necessary market-oriented reforms and modernization of its energy sector;

(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 appropriate on arrangements existing within other international organizations, the matching of needs for
and offers of technical assistance referred to in

paragraph 2 and subparagraph 4 (c);

(c) circulate to all Contraaing Parties at the end of each
six-month period a summary of any notifications
made pursuant to subparagraph 4 (a) or (d).

6. The Charter Conference shall annually review the
progress by Contracting Parties towards implementation
of the provisions of this Article and the matching of
needs and offers of technical assistance referred to in

paragraph 2 and subparagraph 4 (c). In the course of
that review it may decide to take appropriate action.

_**ft**_

_**Article 31**_

**Energy-related equipment**

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

_**Article 32**_

**Transitional arrangements**

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

Article 6 (2) and (5)

Article 7 (4)

Article 9 (1)

Article 10 (7) — specific measures

Article 14 (1) (d) — related only to transfer of unspent
earnings

Article 20 (3)

Article 22 (1) and (3)

2. Other Contracting Parties shall assist any
Contracting Party which has suspended full compliance
pursuant to paragraph 1 to achieve the conditions under
which such suspension can be terminated. This assistance
may be given in whatever form the other Contracting
Parties consider most effective to respond to the needs,
notified pursuant to subparagraph 4 (c) including, where
appropriate, through bilateral or multilateral
arrangements.

3. The applicable provisions, the stages towards full
implementation of each, the measures to be taken and
the date or, exceptionally, contingent event, by which
each stage shall be completed and measure taken are
listed in Annex T for each Contracting Party claiming
transitional arrangements. Each such Contracting Party
shall take the measure listed by the date indicated for the
relevant provision and stage as set out in Annex T.
Contracting Parties which have temporarily suspended
full compliance pursuant to paragraph 1 undertake to
comply fully with the relevant obligations by Î July 2001.
Should a Contracting Party find it necessary, due to
exceptional circumstances, to request that the period of

No L 380/44 Official Journal of the European Communities 31. 12. 94

PART VII

STRUCTURE AND INSTITUTIONS

_Article 33_

Energy Charter Protocols and Declarations

1. The Charter Conference may authorize the
negotiation of a number of Energy Charter Protocols or
Declarations in order to pursue the objectives and principles of the Charter.

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

3. A State or Regional Economic Integration Organization shall not become a party to a Protocol or
Declaration unless it is, or becomes at the same time, a
signatory to the Charter and a Contracting Party to this
Treaty.

4. Subject to paragraph 3 and subparagraph 6 (a),
final provisions applying to a Protocol shall be defined in
that Protocol.

5. A Protocol shall apply only to the Contracting
Parties which consent to be bound by it, and shall not
derogate from the rights and obligations of those
Contracting Parties not party to the Protocol.

6. (a) A Protocol may assign duties to the Charter

Conference and functions to the Secretariat,
provided that no such assignment may be made by
an amendment to a Protocol unless that

amendment is approved by the Charter
Conference, whose approval shall not be subjea
to any provisions of the Protocol which are authorized by subparagraph (b).

(b) A Protocol which provides for decisions
thereunder to be taken by the Charter Conference
may, subject to. subparagraph (a), provide with
respea to sucfr-decisions :

(i) for voting rules other than those contained in
Article 36;

(ii) that only parties to the Protocol shall be
considered to be Contracting Parties for the
purposes of Article 36 or eligible to vote
under the rules provided for in the Protocol.

_Article 34_

Energy Charter Conference

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

'Charter Conference') at which each Contracting Party
shall be entitled to have one representative. Ordinary
meetings shall be held at intervals determined by the
Charter Conference.

2. Extraordinary meetings of the Charter Conference
may be held at such times as may be determined by the
Charter Conference, or at the written request of any
Contracting Party, provided that, within six weeks of the
request being communicated to the Contracting Parties
by the Secreuriat, it is supported by at least one-third of
the Contracting Parties.

3. The functions of the Charter Conference shall be

to:

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

(b) keep under review and facilitate the implementation
of the principles of the Charter and of the
provisions of this Treaty and the Protocols;

(c) facilitate in accordance with this Treaty and the
Protocols the coordination of appropriate general
measures to carry out the principles of the Charter;

(d) consider and adopt programmes of work to be
carried out by the Secretariat;

(e) consider and approve the annual accounts and
budget of the Secreuriat;

(f) consider and approve or adopt the terms of any
headquarters or other agreement, including
privileges and immunities considered necessary for
the Charter Conference and the Secreuriat;

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

(h) authorize and approve the terms of reference for the
negotiation of Protocols, and consider and adopt
the texts thereof and of amendments thereto;

(i) authorize the negotiation of declarations, and
approve their issuance;

0) decide on accessions to this Treaty;

**31.** **12. 94** **OfficLI** **Journal of the European Communities** **No L 380/45**

_**&**_

**(k) authorize the negotiation of and consider and**
**approve or adopt association agreements;**

**(1)** **consider** and **adopt texts of amendments to this**
**Treaty;**

(m) consider and approve **modifications of and** technical
changes to the Annexes to this Treaty;

(n) appoint the Secreury-General **and** uke all decisions
necessary for the esublishment and functioning of
the Secreuriat including the structure, staff levels
and standard terms of employment of officials and
employees.

4. In the performance of its duties, the Charter
Conference, through the Secretariat, shall cooperate with
and make as full a use as possible, consistently with
economy and efficiency, of the services and programmes
of other institutions and organizations with established
competence in matters related to the objectives of this
Treaty.

5. The Charter Conference may esublish such
subsidiary bodies as it considers appropriate for the
performance of its duties.

6. The Charter Conference shall consider and adopt
rules of procedure and financial rules.

7. In 1999 and thereafter at intervals (of not more
than five years) to be determined by the Charter
Conference, the Charter Conference shall thoroughly
review the functions provided for in this Treaty in the
light of the extent to which the provisions of the Treaty
and Protocols have been implemented. At the conclusion
of each review the Charter Conference may amend or
abolish the functions specified in paragraph 3 and may
discharge the Secretariat.

_Article_ _35*_

**Secretariat**

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

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

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

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

5. **The Secreuriat may enter into such administrative**
and **contractual arrangements as may be required for the**
effective discharge of its functions.

_Article 36_

**Voting**

**1.** Unanimity of the Contracting Parties present and
voting at the meeting of the Charter Conference where
such matters fall to be decided shall be required for
decisions by the Charter Conference to:

(a) adopt amendments to this Treaty other than
amendments to Articles 34 and 35 and Annex T;

(b) approve accessions to this Treaty pursuant to Article
41 by States or Regional Economic Integration
Organizations which were not signatories to the
Charter as of 16 June 1995;

(c) authorize the negotiation of and approve or adopt
the text of association agreements;

(d) approve modifications to Annexes EM, NI, G and B;

(e) approve technical changes to the Annexes to this
Treaty; and

(f) approve the Secretary-General's nominations of
panelists pursuant to Annex D, paragraph 7.

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

2. Decisions on budgeury matters referred to in
Article 34 (3) (e) shall be uken by a qualified majority of
Contracting Parties whose assessed contributions as
specified in Annex B represent, in combination, at least
three-fourths of the toul assessed contributions specified
therein.

3. Decisions on matters referred to in Article 34 (7)
shall be taken by a three-fourths majority of the
Contracting Parties.

4. Except in cases specified in subparagraphs 1 (a) to
(f), paragraphs 2 and 3, and subject to paragraph 6,
decisions provided for in this Treaty shall be uken by a

**No L 380/46** **Official Journal of the European Communities** **31.** **12. 94**

**three-fourths majority of the Contracting Parties present**
**and voting at the meeting of the Charter Conference at**
**which** **such matters fall to be decided.**

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

6. Except as provided in paragraph 2,. no decision
referred to in this Article shall be valid unless it has the

support of a simple majority of the Contracting Parties.

7. A Regional Economic Integration Organization
shall, when voting, have a number of votes equal to the
number of its Member Sûtes which are Contracting
Parties _io_ this Treaty; provided that such an Organization shall not exercise its right to vote if its Member
Sûtes exercise theirs, and vice versa.

8. In the event of persistent arrears in a Contracting
Party's discharge of financial obligations pursuant to this
Treaty, the Charter Conference may suspend that
Contracting Party's voting rights in whole or in part.

_Article 37_

**Funding principles**

**1.** Each Contracting Party shall bear its own costs of
represenution at meetings of **the** Charter Conference
and any subsidiary bodies.

2. The cost of meetings of the Charter Conference
and any subsidiary bodies shall be regarded as a cost of
the Secreuriat.

3. The costs of the Secretariat shall be met by the
Contracting Parties assessed according to their capacity
to pay, determined as specified in Annex B, the
provisions of which may be modified in accordance with
Article 36 (1) (d).

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

5. The Charter Conference may in addition accept
voluntary contributions from one or more Contracting
Parties or from other sources. Costs met from such

contributions shall not be considered costs of the Secre
tariat for the purposes of paragraph 3.

PART VIII

FINAL PROVISIONS

_Article 38_

Signature

This Treaty shall be open for signature at Lisbon from
17 December 1994 to 16 June 1995 by the Sûtes and
Regional Economic Integration Organizations which
have signed the Charter.

_--Article_ _39_

Ratification, acceptance or approval

This Treaty shall be subject to ratification, accepunce or
approval by signatories. Instruments of ratification,
accepunce or approval shall be deposited with the
Depositary.

_Article 40_

Application to territories

1. Any Sute or Regional Economic Intégration
Organization may at the time of signature, ratification,
acceptance, approval or accession, by a declaration

deposited with the Depositary, declare that the Treaty
shall be binding upon it with respect to all the territories
for the international relations of which it is responsible,
or to one or more of them. Such declaration shall uke

effect at the time the Treaty enters into force for that
Contracting Party.

2. Any Contracting Party may at a later date, by a
declaration deposited with the Deposiury, bind itself
under this Treaty with respect to other territory specified
in the declaration. In respect of such territory the Treaty
shall enter into force on the 90th day following the
receipt by the Deposiury of such declaration.

3. Any declaration made under the two preceding
paragraphs may, in respea of any territory specified in
such declaration, be withdrawn by a notification to the
Depositary. The withdrawal shall, subject to the applicability of Article 47 (3), become effective upon the expiry
of one year after the date of receipt of such notification
by the Depositary.

4. The definition of 'area' in Article 1 (10) shall be
construed having regard to any declaration deposited
pursuant to this Article.

**31.** **12. 94** **Officiai Journal of the European Communities** **No L 380/47**

**particular** circumstances **of the** association, **and in each**
case shall be set out in the association agreement.

_**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 ratification, 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.

2. For each State or Regional Economic Integration
Organization which ratifies, accepts or approves this
Treaty or accedes thereto after the deposit of the 30th
instrument of ratification, accepunce or approval, it shall
enter into force on the 90th day after the date of deposit
by such State or Regional Economic Integration Organization of its instrument of ratification, accepunce,
approval or accession.

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

deposited by Member States of such Organization.

_Article 45_

Provisional application

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

2. (a) Notwithsunding paragraph 1 any signatory may,
when signing, deliver to the Depositary a
declaration that it is not able to accept provisional
application. The obligation contained in
paragraph 1 shall not apply to a signatory making
such a declaration. Any such signatory may nt any
time withdraw that declaration by written notification to the Depositary.

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

(c) Notwithsunding subparagraph (a), any signatory
making a declaration referred to in subparagraph
(a) shall apply Pan VII provisionally pending the
entry into force of the Treaty for such signatory
in accordance with Article 44, to the extent that

**(I**

_**Û**_

_**Article**_ _41_

**Accession**

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
Secreuriat at least three months before the date on

which it is proposed for adoption by the Charter
Conference.

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

4. Instruments of ratification, accepunce or approval
of amendments to this Treaty shall be deposited with the
Deposiury. Amendments shall enter into force between
Contracting Parties having ratified, accepted or approved
them on the 90th day after deposit with the Deposiury
of instruments of ratification, accepunce or approval by
at least three-fourths of the Contracting Parties.
Thereafter the amendments shall enter into force for any
other Contraaing Party on the 90th day after that
Contraaing Party deposits its instrument of ratification,
accepunce or approval of the amendments.

_Article 43_

Association agreements

1. The Charter Conference may authorize the
negotiation of association agreements with Sûtes or
Regional Economic Integration Organizations, or with
international organizations, in order to pursue the
objectives and principles of the Charter and the
provisions of this Treaty or one or more Protocols.

2. The relationship established with and the rights
enjoyed and obligations incurred by an associating State,
Regional Economic Integration Organization, or international organization shall be appropriate to the

**No** **L 380/48** **Official Journal of** **the** **European Communities** **31.** **12. 94**

**such provisional application is not inconsistent**
**with its laws or regulations.**

**3.** **(a) Any** **signatory** **may** **terminate** **its** **provisional**
**application of this Treaty by** **written** **notification**
**to the Deposiury of its intention not to become a**
**Contraaing Party to the Treaty. Termination of**
**provisional application for any signatory shall**
**take effect upon the expiration of 60 days from**
**the date on which such signatory's written notifi-**
**cation is** received by **the Deposiury.**

(b) **In** the event that **a** signatory terminates
provisional application pursuant **to** subparagraph
(a), the obligation of the signatory pursuant to
paragraph 1 to apply Parts **III** and V with respect
to any investments made in its area during such
provisional application by investors of other
signatories shall nevertheless remain in effect with
respect to those investments for 20 years
following the effective date of termination, except
as otherwise provided in subparagraph (c).

(c) Subparagraph (b) shall not ipply to any signatory
listed in Annex PA. A signatory shall be removed
from the list in Annex PA effective upon delivery
to the Deposiury of its request therefor.

4. Pending the entry into force of this Treaty the
signatories shall meet periodically in the provisional
Charter Conference, the first meeting of which shall be
convened by the provisional Secreuriat referred to in
paragraph 5 not later than 180 days after the opening
date for signature of the Treaty as specified in Article 38.

5. The functions of the Secreuriat shall be carried out

on an interim basis by **a** provisional Secretariat until the
entry into force of this Treaty pursuant to Article 44 and
the establishment of a -Secreuriat.

6. The signatories shall, in i accordance with and
subject to the provisions of paragraph 1 or subparagraph
2 (c) as appropriate, contribute to the costs of the
provisional Secreuriat as if the signatories were
Contracting Parties pursuant to Article 37 (3).' Any
modifications made to Annex B by the signatories shall
terminate upon the entry into force of this Treaty.

7. A State or Regional Economic Integration Organization which, prior to this Treaty's entry into force,
accedes to the Treaty in accordance with Article 41 .shall,
pending the Treaty's entry into force, have the rights and
assume the obligations of a signatory pursuant to this
Article.

_**Article 46**_

**Reservations**

No **reservations may** be **made to this Treaty.**

_**Article 47**_

**Withdrawal**

**1.** **At** any time after five years from the date on which
this Treaty has entered into force for a Contraaing
Party, that Contraaing Party may give written notification to the Deposiury of its withdrawal from the
Treaty.

2. Any such withdrawal shall take effect upon the
expiry of one year after the date of the receipt of the
notification by the Depositary, or on such later date as
may be specified in the notification of withdrawal.

3. The provisions of this Treaty shall continue to
apply to investments made in the area of a Contracting
Party by investors of other Contracting Parties or in the
area of other Contracting Parties by investors of that
Contracting Party as of the date when that Contracting
Party's withdrawal from the Treaty takes effect for a
period of 20 years from such date.

4. All Protocols to which a Contracting Party is party
shall cease to be in force for that Contracting Party on
the effective date of its withdrawal from this Treaty.

_Article 48_

Sutus of Annexes **and** Decisions

The Annexes to this Treaty and the Decisions set out in
Annex 2 to the F [;] nal Act of the European Energy
Charter Conference signed at Lisbon on 17 December
1994 are integral parts of the Treaty.

_Article 49_

Deposiury

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

_Article 50_

Authentic texts

Jn witness whereof the undersigned, being duly authorized to that effect, have signed this Treaty in English,
French, German, Italian, Russian and Spanish, of which
every text is equally authentic, in one original, which will
be deposited with the Government of the PortugueseRepublic.

_**<\**_ **31.12.94** **Official Journal of the European Communities** **No L** **380/49**

Done at Lisbon on **the** seventeenth **day** of **December** in **the** year **one thousand nine bundred**

and ninety-four.

Fait à Lisbonne, le dix-sept décembre mil neuf cent quatre-vingt-quatorze.

Geschehen zu Lissabon am siebzehnten Dezember neunzehnhundertvierundneunzig.

Fatto a Lisbona il diciassettesimo giorno del mese di dicembre dell'anno millenovecentonovanta
quattro.

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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& [i a] evtaKÔata evev^vxa xéaaepa.

/•$• Gedaan te Lissabon, de zeventiende december negentienhonderd vierennegentig.

Feito em Lisboa, aos dezassete de Dezembro de mil novecentbs e noventa e quatro.

**#**

**No L 380/50** **Official Journal of the European Communities** **31.12.** **94**

**Për** **Republikën e Shqipërisë**

^lujinuinujOp 3uiûpumjbimupjUJÛ htuiiiup

For Australia

Fiir die Republik osterreich

**&**

**7/** _**m**_

**31.12.** **94** **Official Journal of the European** **Communities** **No L 380/51**

A3ep6aflnaH aMHH<jaH

_**S>**_ **«r**

Pour le royaume de Belgique

Voor het Koninkrijk België

Fur das Kônigreich Belgien

Cette signature engage également la Communauté française de Belgique, la Communauté flamande,
la Communauté germanophone de Belgique, la Région wallonne, la Région flamande et la région
de Bruxelles-Capitale.

Deze handtekening bindt eveneens de Vlaamse Gemeenschap, de Franse Gemeenschap van België,
de Duitstalige Gemeenschap van België, het Waals Gewest en net Brussels Hoofdstedelijk Gewest.

Dièse Unterschrift bindet ebenso die Flâmische Gemeinschaft, die Franzôsische Gemeinschaft Belgiens, 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 / 5 2** **Official** **Journal** **of** **the** **European Communities**

**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

**»**

**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**

**• ***

**31.12.94** **Official Journal** **of the** **European Communities** **No** **L** **380/59**

**Pela** **Republica** **Portuguesa**

**v^'**

Pentru Romania

### **1**
###### **_t_**

3a POCCHP.CKVD $eflepaiiHD

Za Slovensku republiku

**V**

**No** **L** **380/60** **Official Journal of the European Communities** **31.** **12. 94**

**Za Republiko Slovenijo**

7^9%lS
**c**

Por el Reino de Espana

For Konungariket Sverige

**X** I

C / ^ 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 yxpaïiiy

**No L 380/62** **Official Journal of the** **European** **Communities** **31.12.** **94**

**For the United Kingdom of Great Britain and Northern Ireland**

##### •v.- .2  / - ' % - tS'^L.

**For the** United States of America

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**31.** **12. 94** **Official Journal of the European Communities** **No L 380/63**

**ANNEXES TO THE ENERGY CHARTER TREATY**

_**TABLE OF**_ _**CONTENTS**_

Page

**1.** _**Annex EM**_

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

**2.** _**Annex NI**_

65

**3**

_•_ _%_

Non-applicable energy materials and products for definition of 'economic activity in the energy
sector'

(In accordance with Article 1 (5)) 66

**3.** _**Annex**_ _**TRM**_

Notification and phase-out (TRIMs)
(In accordance with Article 5 (4)) 66

**4.** _**Annex N**_

List of Contracung Parties requiring at least three separate areas to be involved in a transit
(In accordance with Article 7 (10) (a)) 67

**5.** _**Annex VC**_

List of Contracting Parties which have made volunury binding commitments in respea of
Article 10 (3)

(In accordance with Article 10 (6)) 67

**6.** _**Annex ID**_

List of Contracting Parties not allowing an investor to resubmit the same dispute to international arbitration at a later stage pursuant to Article 26
(In accordance with Article 26 (3) (b) (i)) 68

_**7. Annex**_ _**IA**_

List of Contracting Parties not allowing an investor or Contracting Party to submit a dispute
concerning the last sentence of Article 10 (1) to international arbiuation
(In accordance with Articles 26 (3) (c) and 27 (2)) 68

**8.** _**Annex P**_

Special sub-national dispute procedure
(In accordance with Article 27 (3) (i)) 68

**9.** _**Annex G**_

Exceptions and rules governing the application of the provisions of the GATT and Related
Instruments

(In accordance with Article 29 (2) (a)) **70**

**10.** _**Annex TFU**_

Provisions regarding trade agreements between States which were constituent parts of the
Former Union of Soviet Socialist Republics
(In accordance with Article 29 (2) (b)) **73**

**11.** _**Annex D**_

Interim provisions for trade dispute settlement
(In accordance with Article 29 (7)) **74**

**No** L **380/64** **Official Journal of the European Communities** **31.** 12. **94**

**\** **p** **>gc**

**12.** _**Annex**_ _B_

**Formula for allocating charter costs** _**'**_ _***"**_
**(In accordance with Article 37 (3))** **78**

13. _Annex PA_

List of signatories which do not accept the provisional application obligation of Article 45 (3) (b)
(In accordance with Article 45 (3) (c)) 78

14. _Annex T_

Contracting Parties' transitional measures
(In accordance with Article 32 (1)) 79

_**f**_ **31.** **12. 94** **Official Journal of the European Communities** **No L 380/65**

**1.** _**Annex EM**_

**ENERGY MATERIALS AND PRODUCTS**

(In accordance with Article 1 (4))

Nuclear energy

2612 Uranium or thorium ores and concentrates.

2612 10 Uranium ores and concentrates.

2612 20 Thorium "ores and concentrates.

2844 Radioactive chemical elements and radioactive isotopes (including the fissile or fertile chemical

elements and isotopes) and their compounds; mixtures and residues containing these products.

2844 10 Natural uranium and its compounds.

**&** **• . ***

**.1**

2844 20 Uranium enriched in U235 and its compounds; plutonium and its compounds.

2844 30 Uranium depleted in U235 and its compounds; thorium and its compounds.

2844 40 Radioactive elements and isotopes and radioactive compounds other than 2844 10, 2844 20 or

2844 30.

2844 50 Spent (irradiated) fuel elements (cartridges) of nuclear reactors.

2845 10 Heavy water (deuterium oxide).

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

2701 Coal, briquettes, ovoids and similar solid fuels manufactured from coal.

2702 Lignite, whether or not agglomerated excluding jet.

2703 Peat (including peat litter), whether or not agglomerated.

2704 Coke and semi-coke of coal, of lignite or of peat, whether or not agglomerated; retort carbon.

2705 Coal gas, water gas, producer gas 'nd similar gases, other than petroleum gases and other
gaseous hydrocarbons.

2706 Tar distilled from coal, from lignite or from peat, and other mineral tars, whether or not
dehydrated or partially distilled, including reconstituted tars.

2707 Oils and other products of the distillation of high temperature coal tar; similar products in
which 'the weight of the aromatic constituents exceeds that of the non-aromatic constituents
(e.g.,^be,nzole, toluole, xylole, naphtalene, other aromatic hydrocarbon mixtures, phenols,
creosote oils and others).

2708 Pitch and pitch coke, obtained from coal tar or from other mineral tars.

2709 Petroleum oils and oils obtained from bituminous minerals, crude.

2710 Petroleum oils and oils obtained from bituminous minerals, other than crude.

2711 Petroleum gases and other gaseous hydrocarbons

Liquified:

— natural gas,

— propane,

— butanes,

— ethylene, propylene, butylène and butadiene (2711 14),

— other.

**N o L 380/66** Official **Journal of the European** Communities 31. 12. 94

In gaseous state:

—
**natural gas,**

**— other.**

2713 Petroleum coke, petroleum bitumen and other residues of petroleum oils or of oils obtained
from bituminous minerals.

2714 Bitumen and asphalt, natural; bituminous or oil shale and tar sands; asphaltites and asphaltic
rocks.

2715 Bituminous mixtures based on natural asphalt, on natural bitumen, on petroleum bitumen, on
mineral tar or oh mineral tar pitch (e.g., bituminous mastics, cut-backs).

2716 Electrical energy.

Other energy

4401 10 Fuel wood, in logs, in billets, in twigs, in faggots or in similar forms.

4402 Charcoal (including charcoal from shells or nuts), whether or not agglomerated.

2. _Annex_ _NI_

NON-APPLICABLE ENERGY MATERIALS AND PRODUCTS FOR DEFINITION OF

'ECONOMIC ACTIVITY IN THE ENERGY SECTOR'

(In accordance with Article 1 (5))

2707 Oils and other products of the distillation of high temperature coal tar; similar products in
which the weight of the aromatic constituents exceeds that of the non-aromatic constituents
(e.g., benzole, toluole, xylole, naphtalene, other aromatic hydrocarbon mixtures, phenols,
creosote oils and others).

4401 10 Fuel wood, in logs, in billets, in twigs, in faggots or in similar forms.

4402 Charcoal (including charcoal from shells or nuts), whether or not agglomerated.

3. _Annex_ _TRM_

NOTIFICATION AND PHASE-OUT (TRIMs)

(In accordance with Article 5 (4))

1. Each Contracting Pany shall notify to the Secretariat all trade-related investment measures which it
applies that are not in conformity with the provisions of Article 5, within:

(a) 90 days after the entry into force of this Treaty if the Contracting Pany is a pany to the GATT; or

(b) 12 months after the entry into force of this Treaty if the Contracting Pany is not a pany to the

GATT.

Such trade-related investment measures of general or specific application shall be notified along with
their principal features.

_**I**_
**Jj |i** **31. 12. 94** **Official Journal of the European Communities** **No L 380/67**

**2.** **In the case of trade-related** **investment** **measures applied under discretionary authority, each specific**
**application shall be notified. Information that would prejudice the legitimate commercial interests of**
**particular enterprises need not be disclosed.**

**3.** **Each Contraaing** **Parry** **shall eliminate all trade-related investment measures which are notified** **under.** **•**
**paragraph 1 within:**

**(a) two years from the date of entry into force of this Treaty if the Contracting Party is a party to the** '
GATT; **or**

(b) three years from **the date** of entry into force of this Treaty if **the** Contraaing Party is not **a** party to
the GATT.

4. During the applicable **period referred to** in **paragraph 3 a** Contracting Party shall not modify **the terms**
of any trade-related investment measure which it notifies pursuant to paragraph 1 from those prevailing
at the date of entry into force of this Treaty so as to increase the degree of inconsistency with **the**
provisions of Article 5 of this Treaty.

5. Notwithstanding the provisions of paragraph 4, a Contracting Party, in order not to disadvantage established enterprises which are subject to a trade-related investment measure notified pursuant to
paragraph 1, may apply during the phase-out period the same trade-related investment measure to a
new investment where:

**2>**

(a) the products of such investment are like products to those of the established enterprises; and

(b) such application is necessary to avoid distorting the conditions of competition between the new
investment and the established enterprises.

Any trade-related investment measure so applied to a new investment shall be notified to the Secretariat.
The terms of such a trade-related investment measure shall be equivalent in their competitive effect to
those applicable to the established enterprises, and it shall be terminated at the same time.

6. Where a State or Regional Economic Integration Organization accedes to this Treaty after the Treaty
has entered into force:

(a) the notification referred to in paragraphs 1 and 2 shall be made by the later of the applicable date in
paragraph 1 or the date of deposit of the instrument of accession; and

(b) the end of the phase-out period shall be the later of the applicable date in paragraph 3 or the date
on which the Treaty enters into force for that State or Regional Economic Integration Organ

4. _Annex_ _N_

LIST OF CONTRACTING PARTIES REQUIRING AT LEAST THREE SEPARATE **AREAS TO BE**

INVOLVED IN A TRANSIT

^>, (In accordance with Article 7 (10) (a))

- 1. Canada and United Sûtes of America

5. _Annex_ _VC_

LIST OF CONTRACTING PARTIES WHICH HAVE MADE VOLUNTARY BINDING

COMMITMENTS IN RESPECT OF ARTICLE 10 (3)

(In accordance with Anicle 10 (6))

No L 380/68 **Official Journal of the European Communities** 31. 12. 94

6. _**Annex**_ _ID_

**LIST OF CONTRACTING PARTIES NOT ALLOWING AN** **INVESTOR** **TO RESUBMIT THE**

**SAME DISPUTE TO INTERNATIONAL ARBITRATION AT** **A'LATER** **STAGE PURSUANT TO**

**ARTICLE 26**

(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

8. _Annex P_

SPECIAL SUB-NATIONAL DISPUTE PROCEDURE

(In accordance with Article _27_ (3) (i))

PART I

1. Canada

_2._ Australia

**31.** **12. 94** **Official Journal of** the **European Communities** **N o L 380/69**

**P A R T n**

**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 compensation as a mutually satisfactory resolution of the dispute.

4. If no satisfactory compensation has been agreed within 20 days of the request of the Injured 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. Determinations 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 determination, which shall be final and binding.

7. In suspending any obligations to a Responsible Party, an Injured Party shall make every effort not to
affect adversely the rights under the Treaty of any other Contracting Party.

**No L 380/70** **Official Journal of the** **European** **Communities** **31. 12. 94**

**9.** _**Annex G**_

**EXCEPTIONS AND RULES GOVERNING THE APPUCATION OF-THE PROVISIONS OF THE**

**GATT AND RELATED INSTRUMENTS**

**(In accordance with Article 29 (2) (a))**

**1.** **The following provisions of GATT 1947 and Related Instruments shall not be applicable under Artide**
**29 (2) (a):**

**(a) General Agreement** **oa** **Tariffs and Trade**

II Schedules of **concessions (and the Schedules to the General Agreement** on Tariffs **and**

**Trade)**

IV Special provisions **relating** to cinematographic films

XV Exchange arrangements

XVIII Governmental assistance to economic development

XXII Consulution

XXIII Nullification or impairment

XXV Joint action by the Contracung Parties

XXVI Accepunce. Entry into force and registration

XXVII Withholding or withdrawal of concessions

XXVIII Modification of Schedules

XXVIIIa Tariff negotiations

XXIX The relation of this Agreement to the Havana Charter

XXX Amendments

XXXI Withdrawal

XXXII Contracting Parties

XXXIII        - » Accession

XXXV Non-application of the Agreement between particular Contracting Parties

XXXVI Principles and objectives

XXXVII Commitments

XXXVIII Joint action

Annex H Relating to Article XXVI

Annex I Notes and supplemenury provisions (related to above GATT Articles)

Safeguard action for development purposes

Undcrsunding regarding notification, consulution, dispute settlement and surveillance.

_**•à**_

**3 1 . 1 2 . 9 4** **Official Journal** **of** **the European Communities** **N o** **L 380/71**

**(b) Related** **Instruments**

**(i)** _**Agreement**_ _**on Technical Barriers to Trade (Standards Code)**_

**Preamble (paragraphs 1, 8, 9)** *****

**1.3.** **General provisions**

**2.6.4.** **Preparation, adoption and application of technical regulations and sundards by**

**central government bodies**

**10.6.** **Information about technical regulations,** sundards and certification systems

**11.** Technical assisunce **to** other Parties

12. Special **and** differential treatment of-developing countries

13. The Committee on Technical Barriers to Trade

14. Consulution and dispute setdement

15. Final provisions (other than 15.5 and 15.13)

Annex 2 Technical Expert Groups

Annex 3 Panels

(ii) _Agreement on Government_ _Procurement_

(iii) _Agreement on Interpretation and Application of Articles VI, XVI and XXIII_ _(Subsidies and_
_Countervailing_ _Measures)_

10. Export subsidies on certain primary products

12. Consulutions

13. Conciliation, dispute setdement and authorized counter measures

14. Developing countries

16. Committee on Subsidies and Countervailing Measures

17. Conciliation

18. Dispute setdement

19.2. Accepunce and accession

19.4. Entry into force

19.5. (a) National legislation

19.6. Review

19.7. v. Amendments

19.8. -.Withdrawal

19.9. Non-application of this Agreement between particular signatories

19.11. Secreuriat

19.12. Deposit

19.13. Registration

(iv) _Agreement_ _on._ _Implementation of Article VII (Customs Valuation)_

1.2. (b) (iv) Transaction value

11.1. Determination of customs value

14. Application of Annexes (second sentence)

18. Institutions (Committee on Customs Valuation)

**No L 380/72 .** **Official Journal of the European Communities** **3L** **12. 94**

**19.** **Consulution**

**20.** **Dispute settlement**

**21.** **Special and** **differential** **treatment of developing countries**

**22.** **Accepunce and accession**

**24.** Entry **into force**

25.1. National legislation

26. Review

27. Amendments

28. Withdrawal

29. Secreuriat

30. Deposit

31. Registration

Annex II Technical Committee on Customs Valuation

Annex III _Ad hoc_ panels

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

(v) _Agreement on Import Licensing_ _Procedures_

1.4. General provisions (last sentence)

2.2. Automatic import licensing (footnote 2)

4. Institutions, consulution and dispute setdement

5. Final provisions (except paragraph 2)

(vi) _Agreement on Implementation of Artide VI (Antidumping Code)_

13. Developing countries

14. Committee on Anti-Dumping Practices

15. Consulution, conciliation and dispute settlement

16. Final piovisions (except paragraphs 1 and 3)

(vii) _Arrangement regarding bovine meat_

(viii) _International dairy arrangement_

(ix) _Agreement on Trade in Civil Aircraft_

(x) _Declaration on trade measures taken for_ _balance-ofpayments_ _purposes._

(c) All other provisions in the GATT or Related Instruments which relate to:

(i) govemmenul assisunce to economic development and the treatment of developing countries,
except for paragraphs 1 to 4 of the Decision of 28 November 1979 (L/4903) on differential and
more favourable treatment, reciprocity and fuller participation of developing countries;

(ii) the esublishment or operation of specialist committees and other subsidiary institutions;

(iii) signature, accession, entry into force, withdrawal, deposit and registration.

**31.** **12. 94** **Official Journal of the European Communities** **N o** **L** **380/73**

**(d) All** **agreements,** **arrangements, decisions, understandings or other joint action pursuant to the**
**provisions listed in subparagraphs (a) to (c).**

**2.** **Contracung Parties shall apply the provisions of the Declaration on trade measures taken for balance-**
**of-payments** **purposes'** **to measures taken by those** **'Contracting** **Parties which are not parties to the**
**GATT, to the extent practicable in the** **context,** **of the other provisions of this Treaty.**

**3.** **With respect to notifications required by the provisions made applicable by Artide 29 (2) (a):**

**(a) Contracting Parties which are not parties to the GATT or a Related** Instrument shall **make** their
notifications **to the** **Secreuriat.** **The Secreuriat shall** circulate copies of **the** notifications to all
Contracting Parties. Notifications **to the Secreuriat shall be in** one **of the** authentic **languages** of
this Treaty. The accompanying documents may **be** solely in **the language** of the Contracting Parry;

(b) such requirements shall not apply to Contracting Parties to this Treaty which are also parties to the
GATT and Related Instruments, which conuin their own notification requirements.

4. Trade in nuclear materials may be governed by agreements referred to in the declarations related to this
paragraph conuined in the Final A a of the European Energy Charter Conference.

**-I**

10. _Annex_ _TFU_

PROVISIONS REGARDING TRADE AGREEMENTS BETWEEN STATES WHICH WERE

CONSTITUENT PARTS OF THE FORMER UNION OF SOVIET SOCIALIST REPUBLICS

(In accordance with Artide 29 (2) (b))

1. Any agreement referred to in Article 29 (2) (b) shall be notified in writing to the Secreuriat by or on
behalf of all of the parties to such agreement which sign or accede to this Treaty :

(a) in respect of an agreement in force as of a date three months after the date on which the first of
such parties signs or deposits its instrument of accession to the Treaty, no later than six months after
such date of signature or deposit; and

**- $**

(b) in respect of an agreement which enters into force on a date subsequent to the date referred to in
subparagraph (a), sufficiendy in advance of its entry into force for other Sûtes or Regional
Economic Integration Organizations which have signed or acceded to the Treaty (hereinafter
referred to as the 'Interested Parties') to have a reasonable opportunity to review the agreement and
make representations concerning it to the parties thereto and to the Charter Conference prior to
such entry into force.

2. The notification shall include:

» (a) copies of the original texts of the agreement in all languages in which it has been signed;

(b) a description, by reference to the items included in Annex EM, of the specific energy materials and
products to which it applies;

(c) an explanation, separately for each relevant provision of the GATT and Related Instruments made
applicable by Article 29 (2) (a), of the circumsunces which make it impossible or impracticable for
the parties to the agreement to conform fully with that provision;

(d) the specific measures to be adopted by each party to the agreement to address the circumsunces
referred to in subparagraph (c); and

**N o L 380/74** **Official Journal of the European Communities** **31. 12. 94**

**(c) a** **description** **of** **the** **parties' programmes for achieving a progressive reduction and ultimate elim-**
**ination of the agreement's non-conforming provisions.**

**/""**

**3.** **Parties to an agreement notified in accordance** **with** **paragraph 1 shall afford to the Interested Parties a**
**reasonable opportunity to consult** **with them** **with respect to such** **agreement,** **and shall accord**
**consideration** **to their represenutions. Upon the request of any of the Interested Parties, the agreement**
**shall be considered by the Charter Conference, which may adopt recommendations with respea thereto.**

**4.** **The Charter Conference shall periodically review the implemenution of agreements notified pursuant to**
paragraph **1 and the progress** having **been made towards the elimination of provisions thereof that do**
not conform **with** provisions of **the** GATT **and Related Instruments made applicable by Article 29** (2)
**(a).'** Upon **the request** of any of the Interested Parties, **the Charter Conference may adopt** recommendations with respea to such an agreement.

5. An agreement described in Article 29 (2) (b) may in case of exceptional urgency be allowed to enter into
force without the notification and consulution provided for in subparagraph 1 (b), paragraphs 2 and 3,
provided that such notification ukes place and the opportunity for such consulution is afforded
promptly. In such a case the parties to the agreement shall nevertheless notify its text in accordance with
subparagraph 2 (a) prompdy upon its entry into force.

Contracting Parties which are or become parties to an agreement described in Article 29 (2) (b)
undertake to limit the non-conformities thereof with the provisions of the GATT and Related
Instruments made applicable by Article 29 (2) (a) to those necessary to address the particular circumsunces and to implement such an agreement so as least to deviate from those provisions. They shall
make every effort to take remedial action in light of represenutions from the Interested Parties and of
any recommendations of the Charter Conference.

11. _Annex_ _D_

INTERIM PROVISIONS FOR TRADE DISPUTE SETTLEMENT

» (In accordance with Article 29 (7))

1. (a) In their relations with one another, Contracting Parties shall make every effort through cooperation
and consulutions to arrive at a mutually satisfactory resolution of any dispute about existing
measures that might materially affect compliance with the provisions applicable to trade pursuant to
Article 5 or 29.

(b) A Contracting Party may make a written request to any other Contracting Party for consulutions
regarding any existing measure of the other Contracting Party that it considers might affea
materially compliance with provisions applicable to trade pursuant to Article 5 or 29. A Contraaing
Party which requests consulutions shall to the fullest extent possible indicate the measure
complained of and specify the provisions of Article 5 or 29 and of the GATT and Related
Instruments that it considers relevant. Requests to consult pursuant to this paragraph shall be
notified to the Secreuriat, which shall periodically inform the Contracting Parties of pending
consulutions that have been notified.

(c) A Contracting Party shall treat any confidential or proprieury information identified as such and

conuined in or received in response to a written request, or received in the course of consulutions,
in the same manner in which it is treated by the Contracting Party providing the information.

**•**

(d) In seeking to resolve matters considered by a Contraaing Party to affect compliance with provisions
applicable to trade pursuant to Article 5 or 29 as between itself and another Contraaing Party, the
Contracting Parties participating in consulutions or other dispute setdement shall make every effort
to avoid a resolution that adversely affects the trade of any other Contracting Party.

**31.** **12. 94** **Official Journal of the European Communities** **N o L 380/75**

**2.** **(a) If, within 60 days from the receipt of the request for** **consulution** **referred to in subparagraph 1 (b),**
**the** **Contracung** **Parties have not resolved their dispute or agreed to resolve** **k** **by conciliation,**
**mediation, arbitration or other method, either Contracting Party may deliver to the Secretariat a**
**written request for the establishment of a panel in accordance with subparagraphs (b) to (f). In its**
**request the requesting Contracting Parry shall** **sute** **the substance of the dispute and indicate which**
**provisions of Article 5 or** **29** **and of the GATT and Related Instruments are considered** **relevant.**
**The Secretariat shall promptly deliver copies of the request to all Contracting Parties.**

**(b) The** **interests** **of other Contracting** Parties shall be uken into account during **the** resolution of **a**
**dispute. Any other Contracting** **Parry** **having** a **subsuntial interest in a matter shall have the right to**
**be heard by the panel and to make written** submissions to **it,** provided **that both the** disputing
**Contracting Parties and the Secreuriat have received** written notice of its interest no **later than the**
**date** of esublishment **of the** panel, **as** determined in accordance with subparagraph (c).

(c) A **panel** shall **be deemed to be** established 45 days after the receipt of the written request of a
Contracting Party by the Secreuriat pursuant to subparagraph (a).

_"y_ (d) A panel shall be composed of three members who shall be chosen by the Secretary-General from the

roster described in paragraph 7. Except where the disputing Contraaing Parties agree otherwise, the
members of **a** panel shall not b: citizens of Contracting Parties which either are party to the dispute
or have notified their interest in accordance with subparagraph (b), or citizens of Sûtes members of
a Regional Economic Integration Organization which either is party to the dispute or has notified
its interest in accordance with subparagraph (b).

(e) The disputing Contracting Parties shall respond within 10 working days to the nominations of panel
members and shall not oppose nominations except for compelling reasons.

(f) Panel members shall serve in their individual capacities and shall neither seek nor uke instruction
from any government or other body. Each Contracting Party undertakes to respea these principles
and not to seek to influence panel members in the.,performance of their tasks. Panel members shall
be selected with **a** view to" ensuring their independence, and that a sufficient diversity of backgrounds and breadth of experience are reflected in a panel.

(g) The Secreuriat shall prompdy notify all Contracting Parties that a panel has been constituted.

_**m**_

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.

**N o L 380/76** **Official Journal of the European Communities** **31.** **12. 94**

**Unless otherwise agreed by the disputing Contracting Parties, all procedures involving a panel,**
**including the issuance of its final** **report,** **should be completed within 180 days of the date of esub-**
**lishment of the panel; however, a failure to complete all procedures within this period shall not**
**affea the validity of a final** **report.**

**(b) A panel shall determine its** jurisdiction; **such determination shall be** final **and** binding. Any objection
**by a disputing Contraaing Party that a dispute is not within the jurisdiction of the panel shall** be
**considered by the panel, which shall decide whether to deal** with **the** objection as **a** preliminary
question **or to join** it to the merits of **the** dispute.

(c) **In the event** of two **or*** **more** requests for esublishment of **a** panel in relation to disputes that are
subsuntively similar, **the** Secreury-General may with the consent of all the disputing Contracting
Parties appoint **a** single panel.

4. (a) After having considered rebutul arguments, a panel shall submit to the disputing Contracting
Parties the descriptive sections of its draft written report, including a statement of the facts and a
summary of the arguments made by the disputing Contracting Parties. The disputing Contracting
Parties shall be afforded aft opportunity to submit written comments on the descriptive sections
within a period set by the panel.

Following the date set for receipt of comments from the Contracting Parties, the panel shall issue to
the disputing Contracting Parties an interim written report, including both the descriptive sections
and the panel's proposed findings and conclusions. Within a period set by the panel a disputing
Contracting Party may submit to the panel a written request that the panel review specific aspects of
the interim report before issuing a final report. Before issuing a final report the panel may, in its
discretion, meet with the disputing Contracting Parties to consider the issues raised in such a
request.

The final report shall include descriptive sections (including a sutement of the facts and a summary
of the arguments made by the disputing Contraaing Parties), the panel's findings and conclusions,
and a discussion of arguments made on specific aspects of the interim report at the suge of its
review. The final report shall deal with every subsuntial issue raised before the panel and necessary
to the resolution of the dispute and shall sute the reasons for the panel's conclusions.

A panel shall issue its final report by providing it promptly to the Secretariat and to the disputing
Contracting Parties. The Secretariat shall at the earliest practicable opportunity distribute the final
report, together with any written views that a disputing Contracting Party desires to have appended,
to all Contracting Parties.

(b) Where a panel concludes that a measure introduced or mainuined by a Contraaing Party does not
comply with **a** provision of Article 5 or 29 or with a provision of the GATT or **a** Related Instrument
that applies pursuant to Article 29, the panel may recommend in its final report that the Contracting
Party alter or abandon the measure or conduct so as to be in compliance with that provision.

(c) PaneL reports shall be adopted by the Charter Conference. In order to provide sufficient time for the
Charter". Conference to consider panel reports, a report shall not be adopted by the Charter
Conference until at least 30 days after it has been provided to all Contracting Parties by the Secreuriat. 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 recommendation of a final panel report that has been adopted by the Charter Conference shall inform the
Charter Conference of its intentions regarding compliance with such ruling or recommendation. In
the event that immediate compliance is impracticable, the Contracting Party concerned shall explain
its reasons for non-compliance to the Charter Conference and, in light of this explanation, shall
have a reasonable period of lime to effect compliance. The aim of dispute resolution is the modification or removal of inconsistent measures.

31. 12. 94 Official Journal of the European Communities No L 380/77

**5. (a) Where a Contracting Party has failed within a reasonable period of time to comply with a ruling or**

**recommendation of a** **final** **panel report that has been adopted by the Charter Conference, a**
**Contracting Party to the dispute injured by such** **non-compliance** **may deliver to the non-complying**
**Contraaing Party a written request that** **the** **v** **. non-complying** **Contracting Party enter into**
**negotiations with a view to agreeing upon mutually acceptable compensation. If** **so** **requested the**
**non-complying Contracting Party shall promptly enter into such negotiations.**

**(b) If the non-complying Contraaing Party refuses to negotiate, or if the Contraaing Parties have** not
reached agreement within 30 days after delivery of **the request for** negotiations, **the** injured
Contraaing Party may make **a** written request for authorization of **the** Charter Conference to
suspend obligations owed by **it** to the non-complying Contraaing Party pursuant to Article 5 or 29.

(c) The Charter Conference may authorize the injured Contracting Party to suspend such of its obligations 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 satisfactory solution is reached.

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

Contracting Party of the nature and level of its proposed suspension. If the non-complying
Contracting Party delivers to the Secreury-General a written objection to the level of suspension of
obligations proposed by the injured Contracting Party, the objection shall be referred to arbitration
as provided below. The proposed suspension of obligations shall be stayed until the arbitration has
been completed and the determination of the arbitral panel has become final and binding in
accordance with subparagraph (e).

(b) The Secretary-General shall establish an arbitral panel in accordance with subparagraphs 2 (d) to
(f), which if practicable shall be the same panel which made the ruling or recommendation referred
to in subparagraph 4 (d), to examine the level of obligations that the injured Contracting Pany
proposes to suspend. Unless the Chaner Conference decides otherwise the rules of procedure for
panel proceedings shall be adopted in accordance with subparagraph 3 (a).

(c) The arbitral panel shall determine whether the level of obligations proposed to be suspended by the
injured Contracting Party is excessive in relation to the injury it experienced, and if so, to what
extent. It shall not review the nature of the obligations suspended, except in so far as this is inseparable 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 SecretaryGeneral may also designate, with the approval of the Chaner Conference, not more than 10 individuals,
who are willing and able to serve as panellists for purposes of dispute resolution in accordance with
paragraphs 2 to 4. The Charter Conference may in addition decide to designate for the same purposes
up to 20 individuals, who serve on dispute seulement rosters of other international bodies, who are
willing and able to serve as panellists. The names of all of the individuals so designated shall constitute
the dispute settlement roster. Individuals shall be designated strictly on the basis of objectivity, reliability

No L 380/78 Official Journal of the European Communities 31. 12. 94

**and sound judgement and, to the greatest extent possible, shall have expertise in international trade and**
**energy matters, in particular as relates to provisions applicable pursuant to Article 29. In fulfilling any**
**function pursuant to this Annex, designees shall not be affiliated with or take instructions from any**
**Contracting Party. Designees shall serve for renewable terms of five years and until their successors**
**have been designated. A designee whose term expires shall continue to fulfil any function for which that**
**individual has been chosen pursuant to this Annex. In** **die** **case of death, resignation or incapacity of a**
**designee, the Contracting Party or the Secreury-General, whichever designated said designee, shall**
**. have the right to designate another individual to serve for the remainder** of **that designee's term,** the
designation by **the Secreury-General** being subjea to approval of **the** Charter Conference.

8. Notwithsunding **the** provisions conuined in this Annex, Contracting Parties arc encouraged to consult
throughout **the** dispute resolution proceeding with a view to setding their dispute.

9. The Charter Conference may appoint or designate other bodies or fora to perform any of the functions
delegated in this Annex to the Secreuriat and the Secreury-General.

12. _Annex B_

FORMULA FOR ALLOCATING CHARTER COSTS

(In accordance with Article 37 (3))

1. Contributions payable by Contracting Parties shall be determined by the Secretariat annually on the
basis of their percenuge contributions required under the latest available United Nations Regular
Budget Scale of Assessment (supplemented by information on theoretical contributions for any
Contraaing Parties which are not UN members).

2. The contributions shall be adjusted as necessary to ensure that the toul of all Contracting Parties'

contributions is 100 %.

13. _Annex PA_

LIST **Op SIGNATORIES** WHICH DO NOT ACCEPT THE PROVISIONAL APPLICATION
OBLIGATION OF ARTICLE 45 (3) (b)

(In accordance with Article 45 (3) (c))

1. The Czech Republic

2. Germany

3. Hungary

4. Lithuania

5. Poland

6. The Slovak Republic

**31.** **12. 94** **Official Journal of the European Communities** **N o L 380/79**

**14.** _**Annex T**_

**CONTRACTING PARTIES' TRANSITIONAL MEASURES**

**(In accordance with Article 32 (1))**

**List of Contracting Parties entitled to transitional** **arrangements**

Latvia

Lithuania

Moldova

Poland

Romania

The Russian Federation

Slovakia

Slovenia

Tajikistan

Turkmenistan

Ukraine

Uzbekistan

**/-**

**I** _**n**_

Albania

Armenia

Azerbaijan

Belarus

Bulgaria

Croatia

The Czech Republic

Estonia

Georgia

Hungary

Kazakhsun

Kyrgyzsun

_Provision_

Article 6 (2)

Article 6 (5)

Article 7 (4)

Article 9 (1)

Article 10 (7)

**List of** provisions **subjea to transitional arrangements**

_Page_

**80**

**82**

**84**

**85**

**86**

Article 14 (1) (d)

Article 20 (3)

Article _22_ (3)

**86**

**87**

**N o L 380/80** Official Journal of the European Communities **31.** **12.** **94**

**Article 6 (2)**

**'Each Contracting Party** shall ensure that within its jurisdiction it has'and enforces such laws as are
necessary **and** appropriate to address unilateral and concerted anti-competitive condua in economic
**activity in the energy** sector.'

**COUNTRY: ALBANIA**

**Sector**

**Ail** energy **sectors.**

_**Level of government**_

**National.**

_**Description**_

There is no law on protection of competition in Albania. The
law No 7746 of 28 July 1993 on hydrocarbons and the law No
7796 of 17 February 1994 on minerals do not include such
provisions. There is no law on electricity which is in the suge of
preparation. This law is planned to be submitted to the
Parliament by the end of 1996. In these laws Albania intends to
include provisions on anti-competitive conduct.

_**Phase-out**_

1 January 1998.

COUNTRY: ARMENIA

_**Sector**_

All energy seaors.

_**Level of government**_

National.

_**Description**_

At present a Sute monopoly exists in Armenia in most energy
seaors. There is no law on proteoion of competition, thus the
rules of competition are not yet being implemented. There are
no laws on energy. The draft laws on energy are planned to be
submitted to the Parliament in 1994. The laws are envisaged to
include provisions on anti-competitive behaviour, which would
be harmonized with the EC legislation on competition.

_**Phase-out**_ **^**

31 December 1997.

COUNTRY: AZERBAIJAN

_**Sector**_

All energy seaors.

_**Level of government**_

National.

_**Description**_

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

_**Phase-out**_

1 January 2000.

COUNTRY: BELARUS

_**Sector**_

All energy sectors.

_**Level of government**_

National.

_**Description**_

Anti-monopoly legislation is at the stage of elaboration.

_**Phase-out**_

1 January 2000.

COUNTRY: GEORGIA

_Sector_

All energy sectors.

_**Level of government**_

National.

_**Description**_

Laws on demonopolization are at present at the stage of elaboration in Georgia and that is why the Sute has so far the
monopoly for practically all energy sources and energy
resources, which restricts the possibility of competition in the
energy and fuel complex.

_**Phase-out**_

1 January 1999.

COUNTRY: KAZAKHSTAN

_Sector_

All energy seaors.

_Level of government_

National.

_Description_

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

_Phase-out_

1 January 1998.

COUNTRY: KYRGYZSTAN

_Sector_

All energy sectors.

**31.** 12. 94 **Official Journal of the European Communities** **N o L 380/81**

_**Level of government**_

National.

_**Description**_

The law on anti-monopoly policies has already been adopted.
The transitional period is needed to adapt provisions of this law
to the energy seaor which is now strialy regulated by the Sute.

_Phase-out_

1 July 2001.

COUNTRY: MOLDOVA

_Sector_

All energy sectors.

_Level of_ _government_

National.

_Description_

The law on restriction of monopolistic activities and development of competition of 29 January 1992 provides an organizational and legal basis for the development of competition, and
of measures to prevent, limit and restria monopolistic aaivities;
it is oriented towards implementing market economy conditions.
This law, however, docs not provide for concrete measures of
anti-competitive condua in the energy seaor, nor does it cover
completely the requirements of Article 6.

In 1995 drafts of a law on competition and a Sute programme
of demonopolization of the economy will be submitted to the
Parliament. The draft law on energy which will also be
submitted to the Parliament in 1995 will cover issues on demon
opolization and development of competition in the energy

seaor.

_Phase-out_

1 January 1998.

COUNTRY: ROMANIA

_Sector_ ^ ^

All energy sectors.

_Level of_ _government_

National.

_Description_

The rules of competition are not yet implemented in Romania.
The draft law on protection of competition has been submitted
to the Parliament and is scheduled to be adopted during 1994.

The draft conuins provisions with respect to anti-competitive
behaviour, harmonized with the EC's law on competition.

_Phase-out_

31 December 1996.

COUNTRY: **THE RUSSIAN FEDERATION**

_**Sector**_

All energy seaors.

_**Level of government**_

The Federation.

_**Description**_

A comprehensive framework of anti-monopoly legislation has
been created in the Russian Federation but other legal and
organizational measures to prevent, limit or suppress monopolistic activities and unfair competition will have to be adopted
and in particular in the energy sector.

_**Phase-out**_

1 July 2001.

COUNTRY: SLOVENIA

_Sector_

All energy sectors.

_Level of government_

National.

_Description_

Law on proteoion of competition adopted in 1993 and
published in Official Journal No 18/93 treats anti-competitive
condua generally. The existing law also provides for conditions
for the esublishment of competition authorities. At present the
main competition authority is the Ofiice of Proteaion of
Competition in the Ministry of Economic Relations and Development. With regard to importance of energy sector a separate
law in this respea is foreseen and thus more time for full
compliance is needed.

_Phase-out_

1 January 1998.

COUNTRY: TAJIKISTAN

_Sector_

All energy seaors.

_Level of government_

National.

_Description_

In 1993 Tajikistan passed the law on demonopolization and
competition. However, due to the difficult economic situation in
Tajikistan, the jurisdiction of the law has been temporarily
suspended.

_Phase-out_

31 December 1997.

**N o L 380/82** **Official Journal of the European Communities** **31.** **12. 94**

**COUNTRY: TURKMENISTAN** :

_**Sector**_

**All energy** **sectors.**

_**Level of government**_

**National.**

_**Description**_

**Under the Ruling of the President of** **Turkmenisun** **No** **1532** of
**21** **Oaobcr** **1993** **the** **Committee on Restricting** Monopolistic
Aaivities has **been** **eublishcd** **and is** acting now, **the** function of
which **is** to protect enterprises **and** other entities from monopoly
condua and practices and to promote **the** formation of market
principles on the basis of **the** development of competition and
entrepreneurship.

Further development of legislation and regulations is needed
which would regulate anti-monopoly condua of enterprises in
the economic activity in **the** energy sector.

**All energy sectors.**

_Level of government_

National.

_Description_

The law on restricting monopoly activities has been adopted in
Uzbekisun and has been in force since July 1992. However, the
law (as is specified in Article 1 (3) does not extend to the
activities of enterprises in the energy sector.

_Phase-out_

**1** July 2001.

_**Phase-out**_

**1 July 2001.** **^**

_**Sector**_

**COUNTRY: UZBEKISTAN**

Article 6 (5)

'If a Contracting Party considers that any specified anti-competitive conduct carried out within the area of
another Contracting Party is adversely affecting an important interest relevant to the purposes identified in
this Article, the Contracting Party may notify the other Contracting Party and may request that its
competition authorities initiate appropriate enforcement action. The notifying Contracting Party shall
include in such notification sufficient information to permit the notified Contraaing Party to identify the
anti-competitive conduct that is the subject of the notification and shall include an offer of such further
information and cooperation as that Contraaing Party is able to provide. The notified Contracting Party
or, as the case may be, the relevant competition authorities may consult with the competition authorities of
the notifying Contraaing Party and shall accord full consideration to the request of the notifying
Contracting Party in deciding whether or not to initiate enforcement action with respect to the alleged
anti-competitive conduct identified in the notification. The notified Contracting Party shall inform the
notifying Contraaing Party of its decision or the decision of the relevant competition authorities and may
if it wishes inform **the** notifying Contracting Party of the grounds for the decision. If enforcement aaion is
initiated, the notified Contracting Party shall advise the notifying Contraaing Party of its outcome and, to
the extent possible, of any significant interim development.'

COUNTRY: **ALBANIA**

_Sector_

All energy sectors.

_Level of government_

National.

_Description_

In Albania there are no esublished institutions to enforce the

competition rules. Such institutions will be provided for in the
law on the protection of competition which is planned to be
finalized in 1996.

_Phase-out_

1 January 1999.

COUNTRY: ARMENIA

_Sector_

All energy sectors.

_Level of government_

National.

_Description_

Institutions to enforce the provisions of this paagraph have not
been esublished in Armenia.

The laws on energy and proteaion of competition are planned
to include provisions to esublish such institutions.

_Phase-out_

31 December 1997.

COUNTRY: **AZERBAIJAN**

_Sector_

All energy sectors.

_Level of government_

National.

31. 12. 94 Official Journal of the European Communities No L 380/83

_**Description**_

**Anti-monopoly** **authorities** **shall** **be** **esublished** **after** **the**
**adoption of** **anti-monopoly** **legislation.**

_**Phase-out**_

1 January 2000.

COUNTRY: **BELARUS**

_Sector_

All energy sectors.

_Level of government_

National.

_Description_

Anti-monopoly authorities shall be esublished after the
adoption of anti-monopoly legislation.

_Phase-out_

1 January 2000.

COUNTRY: GEORGIA

_Sector_

All energy sectors.

_Level of government_

National.

_Description_

Laws on demonopolization are at present at the suge of elaboration in Georgia and that is why there are no competition authorities esublished yet.

_Phase-out_

**1** January 1999.

COUNTRY: **KAZAKHSTAN**

_Sector_

All energy sectors.

_Level of government_

National.

_Description_

An Anti-monopoly Committee has been esublished in
Kazakhsun, but its activity needs improvement, both from
legislative and organizational points of view, in order to
elaborate an effective mechanism handling the complaints on
anti-competitive conduct.

_Phase-out_

**1** January 1998.

COUNTRY: KYRGYZSTAN

_Sector_

All energy sectors.

_**Level of government**_

**National.**

_**Description**_

**There is no mechanism in Kyrgyzsun to control the anti-**
**competitive condua and the relevant legislation. It is necessary**
**to esublish relevant anti-monopoly authorities.**

_**Phase-out**_

1 July 2001.

COUNTRY: **MOLDOVA**

_Sector_

All energy sectors.

_Level of government_

National.

_Description_

The Ministry of Economy is responsible for the control of
competitive conduct in Moldova. Relevant amendments have
been made to the law on breach of administrative rules, which
envisage some penalties for violating rules of competition by
monopoly enterprises.

The draft law on competition which is now at the stage of elaboration will have provisions on the enforcement of competition
rules.

_Phase-out_

1 January 1998.

COUNTRY: **ROMANIA**

_Sector_

All energy sectors.

_Level of government_

National.

_Description_

Institutions to enforce the provisions of this paragraph have not
been esublished in Romania.

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

The draft also provides a period of nine months for
enforcement, suning with the date of its publication.

According to the Europe Agreement establishing an association
between Romania and the European Communities, Romania
was granted a period of five years to implement competition
rules.

_Phase-out_

1 January 1998.

N o L 380/84 Official Journal **of the European Communities** **31.** **12.** **94**

COUNTRY: **TAJIKISTAN**

_**Sector**_

All energy seaors.

_**Level of government**_

National.

_**Description**_

Tajikisun has adopted laws on demonopolization and
competition, but institutions to enforce competition rules are in
the suge of development.

_**Phase-out**_

31 December 1997.

COUNTRY: **UZBEKISTAN**

_**Sector**_ _**r-~**_

All energy sectors.

_**Level of government**_

National.

_**Description**_

The law on restricting monopoly activities has been adopted in
Uzbekisun and has been in force since July 1992. However, the
law (as is specified in Article 1 (3) does not extend to the
activities of the enterprise*, in the energy sector.

_**Phase-out**_

1 July 2001.

Article 7 (4)

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

COUNTRY: AZERBAIJAN

_Sector_

All energy seaors.

_Level of government_

National.

_Description_

It is necessary to adopt a set of laws on energy, including
licensing procedures regulating transit. During a transition
period it is envisaged to build and modernize power transmission lines, as well as-•generating capacities with the aim of
bringing their technical level to the world requirements and
adjusting to conditions of a market economy.

_Phase-out_

31 December 1999.

COUNTRY: BELARUS

_Sector_

_All_ energy sectors.

_Level of government_

National.

_Description_

Laws on energy, land and other subjects are being worked out
at present, and until their final adoption, unceruinty remains as
to the conditions for esublishing new transport capacities for
energy carriers in the territory of Belarus.

_Phase-out_

31 December 1998.

COUNTRY: BULGARIA

_**Sector**_

All energy seaors.

_Level of government_

National.

_Description_

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

_Phase-out_

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

1 July 2001.

COUNTRY: GEORGIA

_Sector_

All energy sectors.

_Level of government_

National.

_Description_

It is necessary to prepare a set of laws on the matter. At present
there are subsuntially different conditions for the transport and
transit of various energy sources in Georgia (electric power,
natural gas, oil products, coal).

_Phase-out_

1 January 1999.

31. 12. 94 Official Journal of the European Communities N o L 380/85

COUNTRY: **POLAND**

_**Sector**_

AH energy sectors.

_**Level of government**_

National.

_Description_

Polish law on energy, being in the final suge of coordination,
stipulates for creating new legal regulations similar to those
applied by free market countries (licenses to generate, transmit,
distribute and trade in energy carriers). Until it is adopted by
the Parliament a temporary suspension of obligations under this
paragraph is required.

_Phase-out_

31 December 1995.

**O**

**(I**

COUNTRY: HUNGARY

_**Sector**_

Electricity industry.

_**Level of government**_

National.

_**Description**_

According to the current legislation esublishment and operation
of high-voluge transmission lines is a Sute monopoly.

The creation of the new legal and regulatory framework for
esublishment, operation and ownership of high-voluge transmission lines is under preparation.

The Ministry of Industry and Trade has already uken the
initiative to put forward a new A a on Electricity Power, that
will have its impact also on the Civil Code and on the A a on
Concession. Compliance can be achieved after entering in force
of the new law on electricity and related regulatory decrees.

_Phase-out_

31 December 1996.

COUNTRY: AZERBAIJAN

_Sector_

All energy sectors.

_Level of government_

National.

_Description_

Relevant legislation is at the suge.of elaboration.

_Phase-out_

1 January 2000.

COUNTRY: BELARUS

_Sector_

All energy sectors.

_Level of government_

National.

_Description_

Relevant legislation is at the stage of elaboration.

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.'

_Phase-out_

1 January 2000.

_Sector_

COUNTRY: GEORGIA

All energy seaors.

_Level of government_

National.

_Description_

Relevant legislation is at the suge of preparation.

_Phase-out_

1 January 1997.

COUNTRY: KAZAKHSTAN

_Sector_

All energy sectors.

**N o L 380/86** **Official Journal of the European** Communities **31.** **12. 94**

_**Level of government**_

National.

_**Description**_

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

_**Phase-out**_

1 July 2001.

COUNTRY: **KYRGYZSTAN**

_**Sector**_ _**^**_

All energy seaors.

_**Level of government**_

**National.**

_**Description**_

Relevant legislation is currendy under preparation.

_**Phase-out**_

1 July 2001.

Article 10 (7) — Specific measures

'Each Contracting Party shall accord to investments in its area of investors of another Contraaing Party,
and their related activities including management, maintenance, use, enjoyment or disposal, treatment no
less favourable than that which it accords to investments of its own investors or of the investors of any
other Contracting Party or any third Sute and their related aoivities including management, maintenance,
use, enjoyment or disposal, whichever is the most favourable.'

COUNTRY: BULGARIA

_**Sector**_

All energy sectors.

_**Level of government**_

National.

_**Description**_

Foreign persons may not acquire property rights over land. A
company with more than 50 % of foreign person's share may
not acquire property right over agricultural land.

Foreigners and foreign legal persons may not aquire property
rights over land except by way of inheritance according to the
law. In this case they have to make it over.

A foreign person may aquire property rights over buildings, but
without property rights over the land.

Foreign persons or companies with foreign controlling participation must obuin a permit before performing the following
activities :

— exploration, development and extraction of natural resources
from the territorial sea, continenul shelf or exclusive
economic zone,

— acquisition of real esute in geographic regions designated by
the Council of Ministers,

— the permits are issued by the Council of Ministers or by a
body authorized by the Council of Ministers.

_**Phase-out**_

1 July 2001.

Article 14 (1) (d)

'Each Contracting Party shall with respect to investments in its area of investors of any other Contracting
Party guarantee the freedom of transfer into and out of its area, including the transfer of:

unspent earnings and other remuneration of personnel engaged from abroad in connection with that
investment;'

COUNTRY: BULGARIA _Description_

_Sector_

All energy seaors.

_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** **N o L** **380/87**

**COUNTRY: HUNGARY**

_**Sector**_

**All energy sectors.**

_**Level of government**_

**National.**

_Description_

**According to the A a on Investments of Foreigners in Hungary,**
**Article 33, foreign top managers, executive managers, members**
**of the Supervisory Board and foreign employees may transfer**

**their income up to 50** **%** **of their aftertax earnings derived from**
**the company of their employment through the bank of their**

**company.**

_Phasè-out_

**The phase out of this** **particular** **restriction depends on the**
**progress Hungary is** **able** **to make in the implemenution of the**
**foreign exchange liberalization programme whose final target is**
**the full convertibility of** **die** **Forint. This restriction does not**
**create barriers to foreign investors. Phase-out is based on stipu-**
**lations of Article 32.**

**1 July 2001.**

**Article 20 (3)**

**'Each Contraaing Party shall** designate one or more enquiry points **to** which requests for information
about **the** abovemcntioncd laws, regulations, judicial decisions and administrative rulings may **be** addressed
and shall communicate promptly such designation to the Secreuriat which shall make it available on
request.'

COUNTRY: ARMENIA

_Sector_

All energy sectors.

_Level of government_

National.

_Description_

In Armenia **there are** no official enquiry points yet to which
requests for information about **the** relevant laws and other regulations could be addressed. There is no information centre

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

_Phase-out_

31 December 1996.

COUNTRY: **AZERBAIJAN**

_Sector_

All energy seaors.

_Level of government_

National.

_Description_

There are no official enquiry points so far in Azerbaijan to
which requests for information about relevant laws and regulations could be addressed. At present such information is
concentrated in various organizations.

_Phase-out_

31 December 1997.

COUNTRY: BELARUS

_Sector_

All energy sectors.

_Level of government_

National.

_Description_

Official enquiry offices which could give information on laws,
regulations, judicial decisions and administrative rulings do not
exist yet in Belarus. As far as the judicial decisions and administrative rulings are concerned there is no praaice of their
publishing.

_Phase-out_

31 December 1998.

COUNTRY: KAZAKHSTAN

_Sector_

All energy seaors.

_Level of government_

National.

_Description_

The process of esublishing enquiry points has begun. As far as
the judicial decisions and administrative rulings arc concerned
they are not published in Kazakhsun (except for some decisions
made by the Supreme Court), because they are not considered
to be sources of law. To change the existing practice will
require a long transitional period.

_Phase-out_

1 July 2001.

COUNTRY: MOLDOVA

_Sector_

All energy sectors.

_Level of government_

National.

**N o L 380/88** **Official Journal of the European Communities** 31. 12. 94

_**Description**_

It is necessary to esublish enquiry points.

_**Phase-out**_

31 December 1995.

COUNTRY: **THE RUSSIAN FEDERATION**

_Sector_

All energy sectors.

_Level of government_

The Federation and the Republics constituting Federation.

_Description_

No official enquiry points exist in the Russian Federation as of
now to which requests for information about relevant laws and
other regulation acts could be addressed. As far as the judicial
decisions and administrative rulings are concerned they are not
considered to be sources of law.

_Phase-out_

31 December 2000.

COUNTRY: SLOVENIA

_Sector_

All energy sectors.

_Level of government_

National.

_Description_

In Slovenia there are no official enquiry points yet to which
requests for information about relevant laws and other regulatory acts could be addressed. At present such information is
available in various ministries. The law on foreign investments
which is under preparation foresees establishment of such an
enquiry point.

_**Phase-out**_

**1** January 1998^

_Sector_

COUNTRY: **TAJIKISTAN**

All energy seaors.

_Level_ _**of government**_

National.

_Description_

There are no enquiry points yet in Tajikisun to which requests
for information about relevant laws and other regulations could
be addressed. It is only a question of having available funding.

_Phase-out_

31 December 1997.

COUNTRY: UKRAINE

_Sector_

All energy sectors.

_Level of_ _government_ 

National.

_Description_

Improvement of the present transparency of laws up to the level
of international practice is required. Ukraine will have to
establish enquiry points providing information about laws, regulations, judicial decisions and administrative rulings and
sundards of general application.

_Phase-out_

1 January 1998.

Article 22 (3)

'Each Contracting Party shall ensure that if it esublishes or mainuins a State entity and entrusts the entity
with regulatory, administrative or other govemmenul authority, such entity shall exercise that authority in
a manner consistent with the Contracting Party's obligations under this Treaty.'

COUNTRY: THE CZECH REPUBLIC

_Sector_

Uranium and nuclear industries.

_Level of government_

National.

_Description_

In order to deplete uranium ore reserves that are stocked by Administration of State Material Reserves, no
imports of uranium ore and concentrates, including uranium fuel bundles containing uranium of
non-Czech origin, will be licensed.

_Phase-out_

1 July 2001.

**31.** **12. 94** **Official Journal of the European** Communities **No** L 380/89

_ANNEX 2_

**DECISIONS WITH RESPECT TO THE ENERGY CHARTER TREATY**

The European Energy Charter Conference has adopted
the following Decisions:

1. With respect to **the** Treaty as **a whole**

In the event of a conflict between the treaty
concerning Spitsbergen of 9 February 1920 (the
Svalbard Treaty) and the Energy Charter Treaty, the
treaty concerning Spitsbergen shall prevail to the
extent of the conflict, without prejudice to the
positions of the Contracting Parties in respect of the
Svalbard Treaty. In the event of such conflict or a
dispute as to whether there is such conflict or as to its
( fl extent, Article 16 and Part V of the Energy Charter
Treaty shall not apply.

2. With respect to Article 10 (7)

The Russian Federation may require that companies
with foreign participation obtain legislative approval
for the leasing of federally-owned property, provided
that the Russian Federation shall ensure without

exception that this process is not applied in a manner
which discriminates among investments of investors of
other Contracting Parties.

3. With respect to Article 14 (*)

1. The term 'freedom of transfer' in Article 14 (1)
does not preclude a Contracting Party (hereinafter
referred to as the 'Limiting Party') from applying
restrictions on movement of capital by its own
investors, provided that:

(a) such restrictions sha_ll '-not impair the rights
granted pursuant to ÂVticle 14 (1) to investors
of other Contracting Parties with respect to
their investments;

(b) such restrictions do not affect current transattiorts; and

(*) This Decision has been drafted in the undersunding that
Contracting Parties which intend to avail themselves of it
and which also have entered into Partnership and Cooperation 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.

(c) the Contracting Party ensures that investments
in its area of the investors of all other

Contracting Parties are accorded, with respect
to transfers, treatment no less favourable than

that which it accords to investments of

investors of any other Contraaing Party or of
any third State, whichever is the most
favourable.

2. This Decision shall be subject to examination by
the Charter Conference five years after entry into
force of the Treaty, but not later than the date
envisaged in Article 32 (3).

3. No Contracting Party shall be eligible to apply
such restrictions unless it is a Contracting Party
which is a State that was a constituent part of the
former Union of Soviet Socialist Republics, which
has notified the provisional Secretariat in writing
no later than 1 July 1995 that it elects to be eligible
to apply restrictions in accordance with this
Decision.

4. For the avoidance of doubt, nothing in this
Decision shall derogate, as concerns Article 16,
from the rights hereunder of a Contracting Party,
its investors or their investments, or from the obligations of a Contracting Party.

5. For the purposes of this Decision:

'current transactions' are current payments
connected with the movement of goods, services or
persons that are made in accordance with normal
international practice, and do not include
arrangements which materially constitute a combination of a current payment and a capital transaction, such as deferrals of payments and advances
which is meant to circumvent respective legislation
of the Limiting Party in the field.

4. With respect to Article 14 (2)

Without prejudice to the requirements of Article 14
and its other international obligations, Romania shall
endeavour during the transition to full convertibility
of its national currency to take pppropriate steps to
improve the efficiency of its procedures for the
transfers of investment returns and shall in any case
guarantee such transfers in a freely convertible
currency without restriction or a delay exceeding six
months. Romania shall ensure that investments in its

area of the investors of all other Contracting Parties
are accorded, with respect to transfers, treatment no

No L 380/90 Official Journal of the European Communities 31. 12. 94

less favourable than that which it accords to
investments of investors of any other Contracting
Party or of any third State, whichever is the most
favourable.

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

An investment of an investor referred to in Article
1 (7) (a) (ii), of a Contracting Party which is not party
to ah EIA or,a member of a free-trade area or a
customs union, shall be entitled to treatment accorded

under such EIA, free-trade area or customs union,
provided that the investment:

(a) has its registered office, central administration or
principal place of business in the area of a party
to that EIA or member of that free-trade area or
customs union; or

(b) in case it only has its registered office in that area,
has an effective and continuous link with the
economy of one of the parties to that EIA or
member of that free-trade area or customs union.

**I**

**Official Journal** **of** **the European Communities** **N o L 380/91**

_**ANNEX 3**_

**E N E R G Y CHARTER PROTOCOL**

**on** **energy** **efficiency and related environmental aspects**

**PREAMBLE**

THE CONTRACTING PARTIES to this Protocol,

Having regard to the European Energy Charter adopted in the Concluding Document of the Hague
Conference on the European Energy Charter, signed at The Hague on 17 December 1991; and in
particular to the declarations therein that cooperation is necessary in the field of energy efficiency and
related environmental protection,

Having regard also to the Energy Charter Treaty, opened for signature from 17 December 1994 to 16 June
1995,

Mindful of the work undertaken by international organizations and fora in the field of energy efficiency
and environmenul aspects of the energy cycle;

Aware of the improvements in supply security, and of the significant economic and environmenul gains,
which result from the implementation of cost-effective energy efficiency measures; and aware of their
importance for restructuring economies and improving living standards;

Recognizing that improvements in energy efficiency reduce negative environmenul consequences of the
energy cycle including global warming and acidification;

Convinced that energy prices should reflect as far as possible a competitive market, ensuring marketoriented price formation, including fuller reflection of environmental costs and benefits, and recognizing
that such price formation is viul to progress in energy efficiency and associated environmenul protection;

Appreciating the viul role of the private seaor including small and medium-sized enterprises in promoting
and implementing energy efficiency measures, and intent on ensuring a favourable institutional framework
for economically viable investment in energy efficiency;

Recognizing that commercial forms of cooperation may need to be complemented by intergovernmenul
cooperation, particularly in the area of energy policy formulation and analysis as well as in other areas
which are essential to the enhancement of energy efficiency but not suitable for private funding; and

Desiring to undertake cooperative and coordinated action in the field of energy efficiency and related
environmental protection and to adopt a Protocol providing a framework for using energy as economically
and efficiently as possible,

HAVE AGREED AS FOLLOWS:

**No L** **380/92** **Official Journal of the European Communities** **31.12.94**

**PARTI**

**INTRODUCTION**

_**Article 1**_

**Scope and objectives of the Protocol**

**1.** This Protocol defines policy principles for the
promotion of energy efficiency as **a** considerable source
of energy **and** for consequently reducing adverse
environmental impacts of energy systems. It furthermore
provides guidance on the development of energy efficiency programmes, indicates areas of cooperation and
provides a framework for the development of cooperative and coordinated action. Such action.may include
the prospecting for, exploration, production, conversion,
storage, transport, distribution, and consumption of
energy, and may relate to any economic sector.

2. The objectives of this Protocol are:

(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 economically, efficiently and environmentally soundly as
possible, particularly through the organization of
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
atThe'Hague on 17 December 1991; signature of the
Concluding Document is considered to be signature
of the Charter.

2. 'Contracting Party' means a State or Regional
Economic Integration Organization which has
consented to be bound by this Protocol and for which
the Protocol is in force.

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 to achieve a defined

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

6. 'Improving energy efficiency' means acting to
maintain the same unit of output (of a good or
service) without reducing the quality or performance (
of the output, while reducing the amount of energy
required to produce that output.

7. 'Environmental impact' means any effect caused by a
given activity on the environment, including human
health and safety, flora, fauna, soil, air, water,
climate, landscape and historical monuments or other
physical structures "or the interactions among these
factors; it also includes effects on cultural heritage or
socio-economic conditions resulting from alterations
to those factors.

PART II

**POLICY PRINCIPLES**

_Article 3_

**Basic principles**

Contracting Parties shall be guided by the following
principles:

1. Contracting Parties shall cooperate and, as appropriate, assist each other in developing and
implementing energy efficiency policies, laws and
regulations.

2. Contracting Parties shall establish energy efficiency
policies and appropriate legal and regulator)'
frameworks which promote, _inter alia:_

(a) efficient functioning of market mechanisms
including market-oriented price formation and a
fuller reflection of environmental costs and

benefits;

**31.** **12. 94** **Official Journal of the European** Communities **No** L 380/93

(b) reduction of barriers **to** energy efficiency, thus
stimulating investments ;

(c) mechanisms for financing energy efficiency
initiatives;

(d) education and awareness;

(e) dissemination and transfer of technologies;

(f) transparency of legal and regulatory frameworks.

3. Contracting Parties shall strive to achieve the full
benefit of energy efficiency throughout the energy
cycle. To this end they shall, to the best of their
competence, formulate and implement energy efficiency policies and cooperative or coordinated actions
based on cost-effectiveness and economic efficiency,
taking due account of environmental aspects.

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

5. When cooperating to achieve the objectives of this
Protocol, Contracting Parties shall take into account
the differences in adverse effects and abatement costs

between Contracting Parties.

6. Contracting Parties recognize the vital role of the

private sector. They shall encourage action by energy
utilities, responsible authorities and specialized
agencies, and close cooperation between industry and
i(j| administrations.

7. Cooperative or coordinated action shall take into
account relevant principles^ adopted in international
agreements, aimed at protection and improvement of
the environment, to which Contraaing Parties are
parties.

8. Contracting b Parties shall take full advantage of the
work and expertise of competent international or
other bodies and shall take care to avoid duplication.

_Article 4_

Division of responsibility and coordination

Each Contracting Party shall strive to ensure that energy
efficiency policies are coordinated among all of its
responsible authorities.

_Article_ _5_

**Strategies and policy aims**

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

_Article 6_

**Financing and financial incentives**

1. Contracting Parties shall encourage the implementation of new approaches and methods for financing
energy efficiency and energy related environmenul
protection investments, such as joint venture
arrangements between energy users and external
investors (hereinafter referred to as 'Third Party
Financing').

2. Contracting Parties shall endeavour to take
advantage of and promote access to private capital
markets and existing international financing institutions
in order to facilitate investments in improving energy
efficiency and in environmental protection related to
energy efficiency.

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

_Article 7_

Promotion of energy **efficient technology**

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

2. Contracting Parties shall promote the use of these
technologies, services and management practices
throughout the energy cycle.

_Article 8_

Domestic programmes

1. In order to achieve the policy aims formulated
according to Article 5, each Contracting Party shall

No L 380/94 Official Journal of **the** European Communities 31. 12. 94

develop, implement and regularly update energy efficiency programmes best suited to its circumstances.

2. These programmes may include activities such as
the:

(a) development of long-term energy demand
supply scenarios to guide decision-making;

and

PART ffl

INTERNATIONAL COOPERATION

_Article 9_

Areas of cooperation

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

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.

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

_Article_ _11_

Secretariat and financing

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

2. The costs of the Secretariat and Charter

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

(b) assessment of the energy, environmenul and
economic impact of actions uken;

(c) definition of sundards designed to improve the efficiency of energy using equipment, and efforts to
harmonize these internationally to avoid trade
distortions;

(d) development and encouragement of private initiative
and industrial cooperation, including joint ventures;

(e) promotion of the use of the most energy efficient
technologies that are economically viable and environmcnully sound;

(f) encouragement of innovative approaches for
investments in energy efficiency improvements, such
as Third Party Financing and co-financing;

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

(h) promotion of the creation of advisory and
consuluncy services which may be operated by
public or private industry or utilities and which
provide informaticm about energy efficiency
programmes and technologies, and assist consumers
and enterprises;

(i) support and promotion of cogeneration and of
measures to increase the efficiency of district heat
production and distribution systems to buildings and
industry;

(j) esublishment of specialized energy efficiency bodies
at appropriate levels, that are sufficiently funded and
suffed to develop and implement policies.

3. In implementing their energy efficiency
programmes, Contracting Parties shall ensure that
adequate institutional and legal infrastructures exist.

**31.** **12. 94** **Official Journal of the European Communities** **No L 380/95**

_**Article 12**_

**Voting**

**1.** **Unanimity of Contracting** **Parties present and**
**voting at the meeting of the Charter Conference where**
**such matters fall to be decided shall be required for**
**decisions to:**

**(a) adopt amendments to this Protocol; and**

**(b) approve** **accessions** **to this Protocol pursuant to**
Article **16.**

Contracting Parties shall make **every effort to reach**
agreement by consensus on any **other matter requiring**
**their decision** pursuant to **this Protocol. If agreement**
cannot be reached by **consensus,** **decisions** **on**
non-budgetary matters shall **be taken by a three-fourths**
majority of Contracting Parties pre ent and voting **at the**
meeting of the Charter Conference **at** which such
matters fall to be decided.

Decisions on budgetary matters shall be taken by **a**
qualified majority of Contracting Parties whose assessed
contributions pursuant to Article **11** **(2) represent, in**
combination, at least three-fourths **of the total** assessed

contributions.

2. For purposes of this Article, 'Contracting Parties
present and voting' means **Contraaing Parties to this**
Protocol present and casting **affirmative or negative**
votes, provided that the Charter Conference **may** decide
upon rules of procedure to enable such decisions **to** be
uken by Contracting Parties by correspondence.

**3.** **Except as provided in paragraph 1 in relation to**
**budgetary matters, no decision referred to in this** Article
shall **be** valid unless it has **the support of a simple**
majority of Contracting Parties.

**4.** A Regional Economic **Integration** **Organization**
shall, when voting, have a **number** **of votes** **equal** **to the**
number of its Member Sûtes" which **are** Contracting
Parties to this Protocol; provided **that** such an Organization shall not exercise its right **to** vote if its Member
States exercise theirs, and vice versa.

5. In the event of persistent arrears in **a** Contracting
Party's discharge of financial obligations under this
Protocol, the Charter Conference may suspend that
Contracting Party's voting rights in whole or in part.

_Article 13_

**Relation** to **the** Energy **Charter Treaty**

**1.** In the event of inconsistency between the provisions
of this Protocol and the provisions of the Energy

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

**2.** **Article 10(1) and Article 12(1) to (3) shall not**
**apply to votes in the Charter Conference on amendments**
**to this Protocol which assign duties or functions to the**
**Charter Conference or the Secreuriat, the establishment**
**of which is provided for in the Energy Charter Treaty.**

**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.

2. The text of any proposed amendment to this
Protocol shall be communicated to Contracting Parties
by the Secretariat at least three months before the date
on which it is proposed for adoption by the Charter
Conference.

**No** **L** **380/96** **Official Journal of the European Communities** **31.** **12.** **94^**

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

**4.** **Instruments of ratification, accepunce or approval**
**of amendments to this Protocol shall be** deposited with
**the** Depositary. **Amendments shall** enter into force
**between** Contracting Parties having ratified, accepted or
approved them on **the** 30th day after deposit with the
Deposiury of instruments of ratification, accepunce or
approval by at least three-fourths of the Contracting
Parties. Thereafter the amendments shall enter into force

for any other Contracting Party on the 30th day after
that Contracting Party deposits its instrument of ratification, 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 ratification, accepunce or approval thereof, or of accession
thereto, by a State or Regional Economic Integration
Organization which is a signatory to the Charter and a
Contracting Party to the Energy Charter Treaty or on
the same date as the Energy Charter Treaty enters into
force, whichever is later.

2. For each State or Regional Economic Integration
Organization for which the Energy Charter Treaty has
entered into force and which ratifies, accepts, or
approves this Protocol or accedes thereto after the
Protocol has entered into force in accordance with

paragraph 1, the Protocol shall enter into force on the
30th day after the date of deposit by such Sute or
Regional Economic Integration Organization of its
instrument of ratification, accepunce, approval or
accession.

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

deposited by Member Sûtes of such Organization.

_**Article 19**_

_^_ **Reservations**

**No reservations may be made to this Protocol.**

_Article 20_

**Withdrawal**

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

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

3. The effective date of withdrawal pursuant to
paragraph 1 shall be 90 days after receipt of notification
by the Deposiury. The effective date of withdrawal
pursuant to paragraph 2 shall be the same as the effective
date of withdrawal from the Energy Charter Treaty.

_Article 21_

**Deposiury**

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

_Article_ _22_

**Authentic texts**

In witness whereof the undersigned, being duly authorized to that effea, have signed this Protocol in
English, French, German, Iulian, Russian and Spanish,
of which every text is equally authentic, in one original,
which will be deposited with the Government of the
Portuguese Republic.

**f** **31.12.94** **Official Journal of the European Communities** **No L** **380/97**

Done at Lisbon on **the** seventeenth day of December in the **year one diousand nine hundred**
and ninety-four.

Fait à Lisbonne, le dix-sept décembre mil neuf cent quatre-vingt-quatorze.

Geschehen zu Lissabon am siebzehnten Dezembcr neunzehnhundertvierundneunzig.

Fatto a Lisbona il diciassettesimo giorno del mese di dicembre dell'anno millenovecentonovantaquattro.

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Hecho en Lisboa, el diecisiete de diciembre de mil novecientos noventa y cuatro.

Udfaerdiget i Lissabon, den syttende december nittenhundrede og fireoghalvfems.

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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

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For Australia

Fiir die Republik Osterreich

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**31.12.** **94** **Official Journal of the European Communities** **No L 380/99**

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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 Belgiens, die Deutschsprachige Gemeinschaft Belgiens, die Flâmische Region, die Wallonische Region
und die Region Brùssel-Hauptstadt.

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**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

Suoinen tasavallan puolesta

*****

**.**

**"*7**

No L 380/102 Official Journal of the European Communities ^#ïfe^.3iii£;sMi.''

Pour la République française

Fur die Bundesrepublik Deutschland

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[3i.12.94](http://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

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No L 380/104

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Officiai ' Journal of the European Com^^

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Latvijas Republikas varda

_**^^^t^^éêêg^**_ **Official** **Journal** **of the European** **Communities:** **No L** **380/105**

**Fur das Furstentum** **Liechtenstein**

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Pour le grand-duché de Luxembourg

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21a Rzeczpospolita Polska

^ | ^ 3 i r i 2 . v f t 4 ;

**7** **•**

**•**

**•**

**31.12,94** **.Official** **Journal of** **.the'** **European.** **Communities** **No L** **3 8 0 / 1 0 7 ; ^**

**Pela** **Republica** **Portuguesa**

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**Pentru** **Romania**

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Za Slovensku republiku

**•No L 380/108** **Official** **• Journal of the European Communities** **31.12.94**

**Za Republiko Slovenijo**

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**c**

Por el Reino de Espana

For Konungariket Sverige

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Ftir die Schweizerische Eidgenossenschaft

Pour la Confédération suisse

Per la Confederazione svizzera

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'31,12.94/ Official-Journal, ofthe Foiror>ean Conununities No L380/109

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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 o t** **380/Ul** **[; ]**

_**ANNEX**_

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

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

Assessment of die environmental impacts of the Energy Cycle.

Development of economic, legislative and regulatory measures.

Technology transfer, technical assistance and industrial joint ventures subjea to intemauonal property
rights regimes and other applicable international agreements.

Research and development

Education, training, information and statistics.

Identification and assessment of measures such as hscal or other market-based instruments, including
tradable permits to take account of external, notably environmental, costs and benefits.

Energy analysis and policy formulation:

— assessment of energy efficiency potenuals,

— energy demand analysis and statistics,

— development of legislative and regulatory measures,

— integrated resource planning and demand side management,

— environmental impact assessment, including major energy projects.

Evaluation of economic instruments for improving energy efficiency and environmental objectives.

Energy efficiency analysis in refining, conversion, transport and distribution of hydro-carbons.

Improving energy efficiency in power generation and transmission:

— cogeneration,

— plant component ((hojlers, turbines, generators, etc.),

— network integration.

Improving energy efficiency in die building seaor:

— thermal insulation standards, passive solar and ventilation,

— space heating and air conditioning systems,

— high efficiency low N O x 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**