CELEX: 51995PC0440
Language: en
Date: 1995-09-20
Title: 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

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)
 ---pagebreak---  ---pagebreak---                     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
 ---pagebreak--- 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.
 ---pagebreak---                                         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.
 ---pagebreak--- 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.
 ---pagebreak---                                            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
 ---pagebreak--- 31. 12. 94                             Official Journal of the European Communities                              N o L 380/3
                       FINAL ACT OF T H E EUROPEAN ENERGY CHARTER CONFERENCE
    I. The final Plenary Session of the European Energy                 B'russels in July 1991 to launch negotiations on the
        Charter Conference was held at Lisbon on 16 to                  European Energy Charter. A number of other
        17 December 1994. Representatives of the                        countries and international organizations were
        Republic of Albania, the Republic of Armenia,                   invited to attend the European Energy Charter
        Australia, the Republic of Austria, the Azerbaijani             Conference as observers.
        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                     Negotiations on the European Energy Charter
        Republic of Estonia, the European Communities,                  were completed in 1991 and the Charter was
        the Republic of Finland, the French Republic, the               adopted by signature of a Concluding Document
        Republic of Georgia, the Federal Republic of                    at a conference held at The Hague on 16 to 17
        Germany, the Hellenic Republic, the Republic of                 December 1991. Signatories of the Charter, then
        Hungary, the Republic of Iceland, Ireland, the                  or subsequently, include all those listed in Section
        Italian   Republic, Japan,      the   Republic    of            I, other than observers.
        Kazakhstan, the Republic of Kyrgyzstan, the
        Republic of Latvia, the Principality of Liech-
        tenstein, the Republic of Lithuania, the Grand
        Duchy of Luxembourg, the Republic of Malta, the
        Republic of Moldova, the Kingdom of the                        The signatories of the European Energy Charter
        Netherlands, the Kingdom of Norway, the                        undertook:                              •
        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                           to pursue the objectives and principles of the
       Confederation, the Republic of Tajikistan, the                       Charter and implement and broaden their
       Republic of Turkey, Turkmenistan, Ukraine, the                       cooperation as soon as possible by negotiating
       United Kingdom of Great Britain and Northern                         in good faith a Basic Agreement and Protocols.
       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               The European         Energy Charter       Conference
       countries and international organizations.                      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
                       BACKGROUND                                      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
  II. During the meeting of the European Council in
                                                                       suspended until completion of the Energy Charter
       Dublin in June 1990, the Prime Minister of the
                                                                       Treaty.
       Netherlands suggested that ^economic recovery in
       eastern Europe and the ïhçn Union of Soviet
       Socialist Republics could be catalysed and accel-
       erated by cooperation in the energy sector. This
       suggestion was welcomed by the Council, which                   Negotiations on the Energy Charter Treaty and
       invited the Commission          of   the   European             the Energy Charter Protocol on energy efficiency
       Communities to study how best to implement such                 and      related    environmental    aspects    were
       cooperation. In February 1991 the Commission                    successfully completed in 1994.
       proposed the concept of a European Energy
       Charter.
       Following discussion of the Commission's proposal                     THE ENERGY CHARTER TREATY
       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            III. As a result of its deliberations the European
       members of the Organization for Economic Coop-                  Energy Charter Conference has adopted the text
       eration and Development to attend a conference in               of the Energy Charter Treaty (hereinafter referred
 ---pagebreak--- N o L 380/4                             Official Journal of thé European Communities                                 31. 12.94
      to as the Treaty*) which is set out in Annex 1 and,                        (iii) land      transportation, - distribution,
      Decisions with respect thereto which are set out in                              storage and supply of energy
      Annex 2, and agreed that the Treaty would be                                     materials and products, e.g., by way
      open for signature at Lisbon from 17 December                                    of transmission, and distribution grids
      1994 to 16 June 1995.                                                            and pipelines or dedicated rail unes,
                                                                                    . and construction of facilities for such,
                                                                                       including the laying of oil, gas, and
                     UNDERSTANDINGS                                                    coal-slurry pipelines;
  IV. By signing the Final A a , the represenutives agreed                       (iv) removal and disposal of wastes from
      to adopt- the following understandings with respect                              energy related facilities such as power
      to the Treaty:                                                                   sutions, including radioactive wastes
                                                                                       from nuclear power sutions;
        1. With respect to the Treaty as a whole
                                                                                  (v) decommissioning of energy related
           (a) The represenutives underline that the                                   facilities, including oil rigs, oil
               provisions of the Treaty have been agreed                               refineries and power          generating
               upon bearing in mind the specific nature                                plants;
               of the Treaty aiming at a legal framework
               to promote long-term cooperation in a
               particular sector and as a result cannot be                       (vi) marketing and sale of, and trade in
               construed to constitute a precedent in the                              energy materials* and products, e.g.,
               context of Other international negotiations.                            reuil sales of gasoline; and
           (b) The provisions of the Treaty do not:                             (vii) research,       consulting,     planning,
                                                                                       management and design activities
                (i) oblige any Contracting Party to                                    related to the activities mentioned
                     introduce mandatory third parry                                   above, including those aimed at
                     access; or                                                        improving energy efficiency.
               (ii) prevent the use of pricing systems
                     which, within a particular category of              3. With respect to Article 1 (6)
                     consumers, apply identical prices to
                     customers in different locations.
                                                                            For greater clarity as to whether an investment
                                                                            made in the area of one Contracting Party is
           (c) Derogations from most favoured nation                        controlled, directly or indirectly, by an
               treatment are not intended to cover                          investor of any other Contracting Party,
               measures which are specific to an investor                   control of an investment means control in fact,
               or group of investors, rather than applying                  determined after an examination of the actual
               generally.                                                   circumstances in each situation. In any such #
                                                                            examination, all relevant factors should be
                                                                            considered, including the investor's:
       2. With respect to Article 1 (5)
           (a) It is understood that the Treaty confers no                  (a) financial interest, including equity interest,
               rights to engage in economic activities                          in the investment;
               other than economic activities in the
               energy sector.
                                                                            (b) ability to exercise subsuntial influence
                                                                                over the management and operation of the
           (b) The following activities are illustrative of                     investment; and
               economic activity in the energy sector:
                                                                            (c) ability to exercise subsuntial influence
                  (i) prospecting and exploration for, and
                                                                                 over the selection of members of the board
                      extraction of, e.g., oil, gas, coal and
                                                                                 of directors or any other managing body.
                      uranium;
                 (ii) construction and operation of power                   Where there is doubt as to whether an investor
                      generation facilities, including those                controls, directly or indirecdy, an investment,
                      powered     by     wind     and    other              an investor claiming such control has the
                      renewable energy sources;                             burden of proof that such control exists.
 ---pagebreak--- 31. 12. 94                             Official Journal, of the European Communities                              N o L 380/5
        4. With respect to Article 1 (8)                                    abroad are not connected with investment or
                                                                            related activities of investors from other
           Consistent with Australia's foreign investment                   Contracting Parties in its area, such
           policy, the establishment of a new mining or                     programmes may be subject to constraints with
           raw materials processing project in Australia                    respect to participation in them.
           with total investment of $A 10 million or more
           by a foreign interest, even where that foreign
           interest is already operating a similar business             10. With respect to Article 10 (4)
           in Australia, is considered as the making of a
           new investment.                                                  The       supplementary     treaty will     specify
                                                                            conditions      for    applying   the    treatment
                                                                            described in Article 10 (3). Those conditions
        5. With respect to Article 1 (12)                                   will include, inter alia, provisions relating to
                                                                            the sale or other divestment of sute assets
           The represenutives recognize the necessity for                   (privatization) and to the dismantling of
           adequate and effective protection of intel-                      monopolies (demonopolization).
           lectual property rights according to the highest
           internationally-accepted sundards.
                                                                        11. With respect to Articles 10 (4) and 29 (6)
        6. With respect to Article 5 (1)                                    Contracting       Parties   may    consider    any
                                                                            connection between the provisions of Article
           The represenutives' agreement to Article 5 is                    10 (4) and Article 29 (6).
           not meant to imply any position on whether or
           to what extent the provisions of the
           'Agreement on Trade-Related Investment                       12. With respect to Article 14 (5)
           Measures' annexed to the Final Act of the
           Uruguay Round of Multilateral Trade                              It is intended that a Contracting Party which
           Negotiations are implicit in Articles III and XI                 enters into an agreement referred to in Article
           of the General Agreement on Tariffs and                          14 (5) ensure that the conditions of such an
           Trade (GATT).                                                    agreement are not in contradiction with that
                                                                            Contracting Party's obligations under the
                                                                            Articles of Agreement of the International
        7. With respect to Article 6                                        Moneury Fund.
           (a) The unilateral       and concerted anti-
                competitive conduct referred to in Article              13. With respect to Article 19 (1) (i)
                6 (2) are to be ' defined by each
                Contracting Party in accordance with its                    It is for each Contracting Party to decide the
                laws and may include exploiutive abuses.                    extent to which the assessment and monitoring
                                                                            of environmenul impacts should be subject to
           (b) 'Enforcement'     and 'enforces' include                     legal requirements, the authorities competent
                action under the competition laws of a                      to u k e decisions in relation to such
                Contracting Party by way of investigation,                  requirements, and the appropriate procedures
                legal proceeding, «r "administrative action                 to be followed.
                as well as by way of any decision or
                further law granting or continuing an
                authorization.                                          14. With respect to Articles 22 and 23
                                                                            With regard to trade in energy materials and
        8. With respect to Article 7 (4)                                    products governed by Article 29, that Article
                                                                            specifies the provisions relevant to the subjects
           The applicable legislation would include                         covered by Articles 22 and 23.
           provisions on environmenul protection, land
           use, safety, or technical sundards.
                                                                        15. With respect to Article 24
        9. With respect to Articles 9, 10 and Part V                        Exceptions conuined in the GATT and
                                                                             Related Instruments apply between particular
           As a Contracting Party's programmes which                         Contracting Parties which are parties to the
            provide for public loans, grants, guarantees or                  G A I T , as recognized by Article 4. With
            insurance for facilitating trade or investment                   respect to trade in energy materials and
 ---pagebreak--- N o L 380/6                             Official Journal of the European Communities                                 31. 12. 94
          products governed by Article 29, that Article                          and     the   Charter.    The      provisional
          specifies the provisions relevant to the subjects                      Secretary-General might report back to
          covered by Article 24.                                                 the provisional Charter Conference at the
                                                                                 meeting which Article 45 (4) requires to be
                                                                                 convened not later than 180 days after the
      16. With respect to Article 26 (2) (a)                                     opening date for signature of the Treaty.
          Article 26 (2) (a) should not be interpreted to                    (b) The Charter Conference should adopt the
          require a Contracting Party to enact Part III                          annual budget before the beginning of the
          of the Treaty into its domestic law.                                   financial year.
      17. With respect to Articles 26 and 27
                                                                        21. With respect to Article 34 (3) (m)
          The reference to treaty obligations in the
          penultimate sentence of Article 10 (1) does not                   The technical changes to Annexes might for
          include decisions taken by international organ-                    insunce include, delisting of non-signatories
          izations, even if they are legally binding, or                    or of signatories that have evinced their
          treaties which entered into force before 1                         intention not to ratify, or additions to Annexes
          January 1970.                                                      N and VC. It is intended that the Secretariat
                                                                             would propose such changes to the Charter
                                                                             Conference when appropriate.
      18. With respect to Article 29 (2) (a)
          (a) Where a provision of GATT Ï947 or a                       22. With respect to Annex TFU (1)
               Related Instrument referred to in this
               paragraph provides for joint action by
               parties to the GATT, it is intended that                      (a) If some of the parties to an agreement
               the Charter Conference u k e such action.                         referred to in paragraph 1 have not signed
                                                                                 or acceded to the Treaty at the time
                                                                                 required for notification, those parties to
          (b) The notion 'applied on 1 March 1994 and                            the agreement which have signed or
               practised with regard to energy materials                         acceded to the Treaty may notify on their
               and products by parties to GATT 1947                              behalf.
               among themselves' is not intended to refer
               to cases where a party to the GATT has
               invoked Article X X X V of the GATT,                          (b) The need in general for notification of
               thereby disapplying the GATT vis-à-vis                            agreements of a purely commercial nature
               another party to the GATT, but never-                             is not foreseen because such agreements
               theless applies unilaterally on a de facto                        should not raise a question of compliance
               basis some provisions of the GATT
               vis-à-vis that other party to the GATT.
                                                                                 with Article 29 (2) (a), even when they are    f»
                                                                                 entered into by sute agencies. The Charter
                                                                                 Conference could, however, clarify for
                                                                                 purposes of Annex TFU which types of
      19. With respect to'Article 33                                             agreements referred to in Article 29 (2) (b)
                                                                                 require notification under the Annex and
                                                                                 which types do not.
          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                                     DECLARATIONS
          negotiated in areas of cooperation such as
          those listed in Title III of the Charter.
                                                                    V. The represenutives declared that Article 18 (2)
                                                                        shall not be construed to allow the circumvention
      20. With respect to Article 34                                    of the application of the other provisions of the
                                                                        Treaty.
          (a) The provisional      Secreury-General should
               make immediate      conuct with other inter-
               national bodies    in order to discover the         VI. The representatives also noted the following
               terms on which      they might be willing to             declarations that were made with respect to the
               undertake usks      arising from the Treaty              Treaty:
 ---pagebreak---   31. 12. 94                             Official Journal of the European Communities                             N o L 380/7
        1. With respect to Article 1 (6)                                 4. With respect to Article 10
            The Russian Federation wishes to have recon-                    Canada and the United. Sûtes of America each
            sidered, in negotiations with regard to the                     affirm that they will apply the provisions of
            supplementary treaty referred to in Article                     Article 10 in accordance with the following
            10 (4), the question of the importance of                       considerations:
            national legislation with respea to the issue of
            control as expressed in the undemanding to
            Article 1 (6).
                                                                            For the purposes of assessing the treatment
                                                                            which must be accorded to investors of other
                                                                            Contracting Parties and their investments, the
        2. With respect to Articles 5 and 10 (11)                           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
            Australia notes that the provisions of Articles 5
                                                                            investors of one Contracting Party, and the
            and 1C (11) do not diminish its rights and obli-
                                                                            investments or investors of another Contracting
            gations under the GATT, including as elab-
                                                                            Party, is only valid if it is made between
            orated in the Uruguay Round Agreement
                                                                            investors and investments in similar circum-
            on     Trade-Related      Investment     Measures,
                                                                            stances. In determining whether differential
            particularly with respect to the list of exceptions
                                                                            treatment of investors or investments is
            in Article 5 (3), which it considers incomplete.
                                                                            consistent with Article 10, two basic factors
                                                                            must be uken into account.
            Australia further notes that it would not be
            appropriate for dispute settlement bodies esub-
            lished under the Treaty to give interpreutions                  The first factor is the policy objectives of
            of GATT Articles III and XI in the context of                   Contracting Parties in various fields in so far as
            disputes between parties to the GATT or                         they are consistent with the principles of
            between an investor of a party to the GATT                      non-discriminatiôn set out in Article 10.
            and another party to the GATT. It considers                     Legitimate policy objectives may justify differ-
            that with respect to the application of Article 10              ential treatment of foreign investors or their
            (11) between an investor and a party to the                     investments in order to reflect a dissimilarity of
            GATT, the only issue that can be considered                     relevant circumsunces between those investors
            under Article 26 is the issue of the awards of                  and      investments     and    their     domestic
            arbitration in the event that a GATT panel or                   counterparts. For example, the objective of
            the W T O dispute settlement body first esub-                   ensuring the integrity of a country's financial
            Hshes that a trade-related investment measure                   system would justify reasonable prudential
            maintained by the Contracting Party is incon-                   measures with respect to foreign investors or
            sistent with its obligations under the GATT or                  investments, where such measures would be
#           the Agreement on Trade-Related Investment                       unnecessary to ensure the atuinment of the
            Measures.                                                       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
         3. With respect to Article 7                                       or their investments. Thus, even if such a
                                                                            measure accorded differential treatment, it
                                                                            would not be contrary to Article 10.
            The European Communities and their Member
            Sûtes and Austria, Norway, Sweden and
            Finland declare that the provisions of Article 7                The second factor is the extent to which the
            are subject to the conventional rules of inter-                  measure is motivated by the fact that the
            national law on jurisdiction over submarine                      relevant investor or investment is subject to
            cables and pipelines or, where there are no such                 foreign ownership or under foreign control. A
            rules, to general international law.                             measure aimed specifically at investors because
                                                                             they are foreign, without sufficient counter-
                                                                            vailing policy reasons consistent with the
            They further declare that Article 7 is not                       preceding paragraph, would be contrary to the
             intended to affect the interpreution of existing                principles of Article 10. The foreign investor or
             international law on jurisdiction over submarine                investment would be 'in similar circumstances'
             cables and pipelines, and cannot be considered                  to domestic investors and their investments, and
             as doing so.                                                    the measure would be contrary to Article 10.
 ---pagebreak--- N o 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                 (a) The European . Communities and the
         of the Treaty esublishing the European                               Russian Federation declare that trade in
         Community:                                                           nuclear materials between; them shall be
                                                                              governed,    until   they    reach   another
                                                                              agreement, by the provisions of Article 22
         (a) companies or firms formed in accordance                          of the Agreement on Partnership and
             with the law of a Member Sute and having                         Cooperation esublishing a partnership
             their registered office, central adminis-                        between the European Communities and
             tration or principal place of business within                    their Member Sûtes, of the one part, and
             the Community shall, for the right of esub-                      the Russian Federation, of the other part,
             lishment pursuant to Part Three, Title III,                      signed at Corfu on 24 June 1994, the
             Chapter 2 of the Treaty esublishing the                          exchange of letters atuched thereto and the
             European Community, be treated in the                            related joint declaration, and disputes
             same way as natural persons who are                              regarding such trade will be subject to the
             nationals of Member Sûtes; companies or                          procedures of the said Agreement.
             firms which only have their registered office
             within the Community must, for this
             purpose, have an effective and continuous                    (b) The European Communities and Ukraine
             link with the economy of one of the                              declare that, in accordance with the Part-
             Member Sûtes;                                                    nership and Cooperation Agreement signed
                                                                              at Luxembourg on 14 June 1994 and the
                                                                              Interim Agreement thereto, initialled there
         (b) 'companies and firms' means companies or                         the same day, trade in nuclear materials
             firms constituted under civil or commercial                      between them shall be exclusively governed
             law, including cooperative societies, and                        by the provisions of a specific agreement to
             other legal persons governed by public or                        be concluded between the European Atomic
             private law, save for those which are                            Energy Community and Ukraine.
             non-profitmaking.
                                                                              Until entry into force of this specific
         The European Communities and their Member
                                                                              agreement, the provisions of the Agreement
         Sûtes further recall that:
                                                                              on Trade and Economic and Commercial
                                                                              Cooperation     between     the     European
                                                                              Economic     Community,       the   European
         Community law provides for the possibility to
                                                                              Atomic Energy Community and the Union
         extend the treatment described above to
                                                                              of Soviet Socialist Republics signed at
         branches and agencies of companies or firms
                                                                              Brussels on 18 December 1989 shall
         not esubiished in one of the Member Sûtes;
                                                                              exclusively continue to apply to trade in
         and that, the application of Article 25 of the                                                                    #
                                                                              nuclear materials between them.
         Energy Charter Treaty will allow only those
         derogations necessary to safeguard the prefer-
         ential treatment, resulting from the wider
         process of economic integration resulting from                   (c) The      European       Communities      and
         the    Treaties    es'ublishing    the    European                   Kazakhsun declare that, in accordance
         Communities.                                                         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
      6. With respect to Article 40                                           provisions of a specific agreement to be
                                                                              concluded between the European Atomic
                                                                              Energy Community and Kazakhsun.
         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                               Until entry into force of this specific
         Greenland and the Faroe Islands.                                      agreement, the provisions of the Agreement
                                                                               on Trade and Economic and Commercial
                                                                               Cooperation     between     the    European
         In this respect Denmark affirms that Article 40                       Economic     Community,       the  European
         of the Treaty applies to Greenland and the                            Atomic Energy Community and the Union
         Faroe Islands.                                                        of Soviet Socialist Republics signed at
 ---pagebreak--- 31. 12. 94                            Official Journal of the European Communities                             N o L 380/9
              Brussels on 18 December 1989 shall                         (f) The European Communities and Uzbek-
              exclusively continue to apply to trade in                      istan declare that trade in nuclear materials
              nuclear materials between them.                                between them shall be exclusively governed
                                                                             by the provisions of a specific agreement to
                                                                             be concluded between the European Atomic
         (d) The       European       Communities      and                   Energy Community and Uzbekistan.
              Kyrgyzsun declare that, in accordance with
              the Agreement on Partnership and Co-                           Until entry into force of this specific
              operation initialled at Brussels on 31 May                     agreement, the provisions of the Agreement
              1994, trade in nuclear materials between                       on Trade and Economic and Commercial
              them shall be exclusively governed by the                      Cooperation      between    the      European
              provisions of a specific agreement to be                       Economic      Community,      the    European
              concluded between the European Atomic                          Atomic Energy Community and the Union
              Energy Community and Kyrgyzsun.                                of Soviet Socialist Republics signed at
                                                                             Brussels on 18 December 1989 shall
                                                                             exclusively continue to apply to trade in
              Until entry into force of this specific                        nuclear materials between them.
              agreement, the provisions of the Agreement
              on Trade and Economic and Commercial
              Cooperation      between     the    European
              Economic     Community,       the   European      THE ENERGY CHARTER PROTOCOL ON ENERGY
              Atomic Energy Community and the Union                EFFICIENCY AND RELATED ENVIRONMENTAL
              of Soviet Socialist Republics signed at                                   ASPECTS
              Brussels on 18 December 1989 shall
              exclusively continue to apply to trade in          VII. The European Energy Charter Conference has
              nuclear materials between them.                         adopted the text of the Energy Charter Protocol
                                                                      on energy efficiency and related environmenul
                                                                      aspects which is set out in Annex 3.
          (e) The European Communities and Tajikistan
              declare that trade in nuclear materials
              between them shall be exclusively governed                 THE EUROPEAN ENERGY CHARTER
              by the provisions of a specific agreement to
              be concluded between the European Atomic          VIII. The provisional Charter Conference and the
              Energy Community and Tajikisun.                         Charter Conference provided for in the Treaty
                                                                      shall henceforth be responsible for making
                                                                      decisions on requests to sign the Concluding
              Until entry into force of this specific                 Document of The Hague Conference on the
              agreement, the provisions of the Agreement              European Energy Charter and the European
              on Trade and Economic and Commercial                    Energy Charter adopted thereby.
              Cooperation      between     the    European
              Economic     Community,       the   European
              Atomic Energy Community and the Union                                DOCUMENrATION
              of Soviet Socialist Republics signed at
              Brussels on 18 December 1989 shall                  XL The records of negotiations of the European
              exclusively continue to apply to trade in               Energy Charter Conference will be deposited with
              nuclear materials between them.                         the Secreuriat.
 ---pagebreak--- 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& v a 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
 ---pagebreak---   31.12.94                          Official Journal of the European Communities N o L 380/11
           Per Republikën e Shqipërisë
           ^lUjuiuimuGp ^tuûpuitqbinnipjuiû huiduip
*
           For Australia
           Fur die Republik Osterreich
 ---pagebreak--- N o L 380/12                          Official Journal of the European Communities                             31.12. 94
            AaepôafiiiaH amtHvax
                                C     , O- rt {
             Pour le royaume de Belgique
             Voor het Koninkrijk België
             Fur das Kônigreich Belgien
             Cette signature engage également la Communauté française de Belgique, la Communauté flamande,
             la Communauté germanophone de Belgique, la Région wallonne, la Région flamande et la région
             de Bruxelles-Capitale.
             Deze handtekening bindt eveneens de Vlaamse Gemeenschap, de Franse Gemeenschap van België,
             de Duitstalige Gemeenschap van België, het Waals Gewest en het Brussels Hoofdstedelijk Gewest.
             Dièse Unterschrift bindet ebenso die Flàmische Gemeinschaft, die Franzôsische Gemeinschaft Belgi-
            ens, die Deutschsprachige Gemeinschaft Belgiens, die Flamische Region, die wallonische Region
             und die Region Briissel-Hauptstadt.
             An iyfl PacnyÔJiiKi Benapycb
             3a PenyôuHKa 5i>JirapKfl
 ---pagebreak--- 31.12. 94                        Official Journal of the European Communities No L 380/13
          For Canada
          Pour le Canada
          za Republiku Hrvatsku
                                                           f
                                                      (Vs*
                                             a*
          For the Republic of Cyprus
                                                       LOULCV^
                            ^^c/L^^
          ZaCeskou Republiku
 ---pagebreak--- No L 380/14                         Official Journal of the European Communities 31.12.94
           For Kongeriget Danmark
                              c%                  ~^r? .            JrTfyA*^-^
           Eesti Vabariigi nimel
           Por las Comunidades Europeas
           For De Europaeiske Faellesskaber
           Fur die Europaischen Gemeinschaften
           Tta TIC EopcùîtaïKéç KoivôxT|Teç
           For the European Communities
           Pour les Communautés européennes
           Per le Comunità europee
           Voor de Europese Gemeenschappen
           Pelas Comunidades Europeias
                     ">
                                        l
                      •idU/
           Suomen tasavallan puolesta
                                                                - <
 ---pagebreak--- 3 1 . 1 2 . 94                          Official Journal of the European Communities N o L 380/15
               Pour la République française
               Fur die Bundesrepublik Deutschland
               Tia rr|v EXXTIVUCVI Arç^ÔKpa-ria
 ---pagebreak---                                     Official Journal of the European Communities 31.12. 94
No L 380/16
            A Magyar Koztarsasag ncvében
            Fyrir hônd Lyôveldisins islands
                                                    l
                                      és ***)Uu>
            Thar cheann na hÉireann
            For Ireland
             Per la Repubblica italiana
 ---pagebreak--- 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
 ---pagebreak--- 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
 ---pagebreak---   31.12. 94                          Official Journal of the European Communities No L 380/19
             Pentru Republica Moldova
                                  A
                                             *
                                            l
                                   H           «\
f
             Voor het Koninkrijk der Nederlanden
                               V\                 ^ \
            For Kongeriket Norge
                               /TWM^
            Za Rzeczpospolita Polska
                                                                      s
                              *-f/^/* ^-KèAdif
 ---pagebreak--- 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
 ---pagebreak--- 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
                                                                         C M A ,
                                    ' 1 Qy^ / W-
          Fiir die Schweizerische Eidgenossenschaft
          Pour la Confédération^suisse
          Per la Confederazione svizzera
                                IfilCLt^-t^SW^
 ---pagebreak--- No L 380/22                       Official Journal of the European Communities 31.12.94
            A3 UOMH T07MKHCTOU
           Turkiye Cumhuriyeti adina
           TypxueHHCTaH XeicyMCTHimn onunxian
           3a yxpaiiiy
 ---pagebreak--- 31.12.94                            Official Journal of die European Communities N o L 380/23
         For the United Kingdom of Great Britain and Northern Ireland
                                                 .2LSÇ^ tJ-rJ/L
         For the United States of America
         y
          36c*MC'roii PcciiyfiJiHKUCM XyxyuaTH iiouHxiaii
 ---pagebreak--- No L 380/24                             Official Journal of the European Communities                                    31. 12. 94
                                                            ANNEX 1
                                            THE ENERGY CHARTER TREATY
                                                             Preamble
           T H E 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 co-
           operation as soon as possible by negotiating in good faith an Energy Charter Treaty and Protocols, and
           desiring to place the commitments contained in that Charter on a secure and binding international legal
           basis;
           Desiring also to establish the structural framework required to implement the principles enunciated in the
           European Energy Charter;
           Wishing to implement the basic concept of the European Energy Charter initiative which is to catalyse
           economic growth by means of measures to liberalize investment and trade in energy;
           Affirming that Contracting Parties attach the utmost importance to the effective implementation of full
           national treatment and most favoured nation treatment, and that these commitments will be applied to the
           making of investments pursuant to a supplementary treaty,
           Having regard to the objective of progressive liberalization of international trade and to the principle of
           avoidance of discrimination in international trade as enunciated in the General Agreement on Tariffs and
          Trade and its Related Instruments and as otherwise provided for in this Treaty;
           Determined progressively to remove technical, administrative and other barriers to trade in energy
           materials and products and related equipment, technologies and services;
          Looking to the eventual membership in the General Agreement on Tariffs and Trade ,of those Contracung
          Panics which are not currendy parties thereto and concerned to provide interim trade arrangements which
          will assist those Contracting Parties and not impede their preparation for such membership;
          Mindful of'the rights and obligations of certain Contracung Parties which are also parlies to the General
          Agreement* op Tariffs and Trade and its Related Instruments;
          Having regard to competition rules concerning mergers, monopolies, anti-competitive practices and abuse
          of dominant position,
          Having regard also to the Treaty on the Non-Proliferation of Nuclear Weapons, the Nuclear Suppliers
          Guidelines and other international nuclear non-proliferation obligations or understandings,
          Recognizing the necessity for the most efficient exploration, production, conversion, storage, transport,
          distribution and use of energy;
          Recalling the United Nations Framework Convention on Climate Change, the Convention on Long-Range
          Transboundary Air Pollution and its protocols, and other international environmental agreements with
          energy-related aspects; and
          Recognizing the increasingly urgent need for measures to protect the environment, including the decom-
          missioning of energy installations and waste disposal, and for internationally-agreed objectives and criteria
          for these purposes,
 ---pagebreak---   31. 12. 94                             Official Journal of the European Communities                             N o L 380/25
                HAVE AGREED AS FOLLOWS:
                                                               PARTI
                                                  DEFINITIONS AND PURPOSE
                            Article 1                                    (b) a company or business enterprise, or shares,
                                                                             stock, or other forms of equity participation in a
                           Definitions                                       company or business enterprise, and bonds and
                                                                             other debt of a company or business enterprise;
  As used in this Treaty:
                                                                         (c) claims to money and claims to performance
                                                                             pursuant to contract having an economic value
      'Charter' means the European Energy Charter                            and associated with an investment;
       adopted in the Concluding Document of the Hague
      Conference on the European Energy Charter signed
      at The Hague on 17 December 1991; signature of
                                                                         (d) intellectual property;
      the Concluding Document is considered to be
      signature of the Charter.
                                                                         (e) returns;
   2. 'Contracting Party' means a State or Regional
      Economic Integration Organization which has
      consented to be bound by this Treaty and for which                 (f) any right conferred by law or contract or by
      the Treaty is in force.                                                virtue of any licences and permits granted
                                                                             pursuant to law to undertake any economic
                                                                             activity in the energy sector.
   3. 'Regional Economic Integration             Organization'
      means an organization constituted by States to
      which they have transferred competence over certain               A change in the form in which assets are invested
      matters a number of which are governed by this                    does not affect their character as investments and the
      Treaty, including the authority to take decisions                 term 'investment' includes all investments, whether
      binding on them in respect of those matters.                      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
   4. 'Energy materials and products', based on the                     investment is made (hereinafter referred to as the
      Harmonized System of the Customs Cooperation                      'effective date') provided that the Treaty shall only
      Council and the combined nomenclature of the                      apply to matters affecting such investments after the
*     European Communities, means the items included in                 effective date.
      Annex EM.
                                                                        'Investment' refers to any investment associated with
      'Economic activity in the energy sector' means an                 an economic activity in the energy sector and to
      economic activity concerning the exploration,                     investments or classes of investments designated by a
      extraction, refining, production, storage, land                   Contracting Party in its area as 'Charter efficiency
      transport,     transmission,     distribution,    trade,          projects' and so notified to the Secretariat.
      marketing, or sale of energy materials and products
      except those included in Annex NI, or concerning
      the distribution of heat to multiple premises.
                                                                     7. 'Investor' means:
  .6. 'Investment' means every kind of asset, owned or
      controlled directly or indirectly by an investor and              (a) with respect to a Contracting Party:
      includes:
                                                                              (i) a natural person having the citizenship or
      (a) tangible and intangible, and movable and                                nationality of or who is permanently residing
          immovable, property, and any property rights                            in that Contracting Party in accoidance with
          such as leases, mortgages, liens, and pledges;                          its applicable law;
 ---pagebreak--- N o L 380/26                            Official Journal of the European Communities                                31. 12. 94
         (ii) a company or other organization organized                    A party to the Agreement Establishing the World
              in accordance with the law applicable in that                Trade Organization is considered to be a party
              Contracting Party;                                           to GATT 1994.
    (b) with respect to a 'third State', a natural person,            (d) 'Related Instruments' means, as appropriate:
         company or other organization which fulfils,
          mutatis mutandis, the conditions specified in                     (i) agreements, arrangements or other legal
         subparagraph (a) for a Contracting Party.                              instruments, including decisions, declarations
                                                                                and understandings, concluded under the
                                                                                auspices of GATT 1947 as subsequently
    'Make investments' or 'making of investments'                               rectified, amended or modified; or
    means establishing new investments, acquiring all or
    part of existing investments or moving into different
    fields of investment activity.                                         (ii) the Agreement Esublishing the World Trade
                                                                                Organization including its Annex 1 (except
                                                                                G A T T 1994), its Annexés 2, 3 and 4, and
 9. 'Returns' means the amounts derived from or                                 the decisions, declarations and under-
    associated with an investment, irrespective of the                          standings related thereto, as subsequently
    form in which they are paid, including profits,                             rectified, amended or modified.
    dividends, interest, capital gains, royalty payments,
    management, technical assistance or other fees and
    payments in kind.                                             12. 'Intellectual property' includes copyrights and
                                                                      related rights, trademarks, geographical indications,
                                                                      industrial designs, patents, layout designs of inte-
                                                                      grated circuits and the protection of undisclosed
10. 'Area' means with respect to a State that is a
                                                                      information.
    Contracting Party:
    (a) the territory under its sovereignty, it being             13. (a) 'Energy Charter Protocol' or 'Protocol' means a
         understood that territory includes land, internal                 treaty, the negotiation of which is authorized
         waters and the territorial sea; and                               and the text of which is adopted by the Charter
                                                                           Conference, which is entered into by two or
                                                                           more      Contracting     Parties  in order      to
    (b) subject to and in accordance with the inter-                       complement, supplement, extend or amplify the
         national law of the sea: the sea, sea-bed and its                 provisions of this Treaty with respect to any
         subsoil with regard to which that Contracting                     specific sector or category of activity within the
         Party exercises sovereign rights and jurisdiction.                scope of this Treaty, or to areas of cooperation
                                                                           pursuant to Title III of the Charter.
    With respect to a»Regional Economic Integration
    Organization which is a Contracting Party, area                   (b) 'Energy Charter Declaration' or 'Declaration'
    means the areas of the Member States of such                           means a non-binding instrument, the negotiation
    Organization, under the provisions contained in the                    of which is authorized and the text of which is
    agreement establishing that Organization.                              approved by the Charter Conference, which is
                                                                           entered into by two or more Contracting Parties
                                                                           to complement or supplement the provisions of
                                                                           this Treaty.
11. (a) 'GATT' means"'GATT 1947' or 'GATT 1994',
         or both of them where both are applicable.
                                                                  14. 'Freely convertible currency 5 means a currency which
                                                                      is widely traded in international foreign exchange
    (b) 'GATT 1947' means the General Agreement on                    markets and widely used in international trans-
         Tariffs and Trade, dated 30 October 1947,                    actions.
         annexed to the Final Act Adopted at the
         Conclusion of the Second Session of the
         Preparatory Committee of the United Nations
                                                                                             Article 2
         Conference on Trade and Employment, as
         subsequently rectified, amended or modified.                                 Purpose of the Treaty
    (c) 'GATT 1994' means the General Agreement on                This Treaty establishes a legal framework in order to
         Tariffs and Trade as specified in Annex 1A of            promote long-term cooperation in the energy field,
         the Agreement Establishing the World Trade               based on complementarities and mutual benefits, in
         Organization,     as      subsequently     rectified,    accordance with the objectives and principles of the
         amended or modified.                                     Charter.
 ---pagebreak---   31. 12. 94                             Official Journal of the European Communities                           N o L 380/27
                                                             PARTE
                                                          COMMERCE
                             Article 3                                  amount related to the volume or value of local
                                                                        production that it exports;
                     International markets
  The Contracting Parties shall work to promote access to          (d) the importation by an enterprise of products used in
  international markets on commercial terms, and                        or related to its local production by restricting its
  generally to develop an open and competitive market, for              access to foreign exchange to an amount related to
  energy materials and products.                                        the foreign exchange inflows attributable to the
                                                                        enterprise; or
                             Article 4
                                                                   (e) the exportation or sale for export by an enterprise of
  Non-derogation from GATT and Related Instruments                      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
  Nothing in this Treaty shall derogate, as between                     local production.
  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.                                             3.     Nothing in paragraph 1 shall be construed to
                                                                   prevent a Contracting Party from applying the trade-
                                                                   related investment measures described in subparagraphs
                                                                   2 (a) and (c) as a condition of eligibility for export
                            Article- 5                             promotion, foreign aid, government procurement or
               Trade-related investment measures                   preferential tariff or quota programmes.
  1.     A Contracting Party shall not apply any trade-            4.     Notwithstanding paragraph 1, a Contracting Party
  related investment measure that is inconsistent with the         may temporarily continue to maintain trade-related
  provisions of Article III or XI of the GATT; this shall be       investment measures which were in effect more than 180
  without prejudice to the Contracting P a r t / s rights and      days before its signature of this Treaty, subject to the
  obligations under the GATT and' Related Instruments              notification and phase-out provisions set out in Annex
  and Article 29.                                                  TRM.
  2.     Such measures include any investment measure
ê which is mandatory or enforceable under domestic law
  or under any administrative ruling, or compliance with
                                                                                             Article 6
  which is necessary to obtain an advantage, and which                                     Competition
  requires:
                                                                   1.     Each Contracting Party shall work to alleviate
  (a) the purchase or use by an enterprise of products of          market distortions and barriers to competition in
       domestic origin or from any domestic source,                economic activity in the energy sector.
       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                                             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
  (b) that an enterprise's purchase or use of imported             concerted anti-competitive conduct in economic activity
       products be limited to an amount related to the             in the energy sector.
       volume or value of local products that it exports;
       or which restricts:                                         3.     Contracting Parties with experience in applying
                                                                   competition rules shall give full consideration to
                                                                   providing, upon request and within available resources,
  (c) the importation by an enterprise of products used in         technical assistance on the development and implemen-
       or related to its local production, generally or to an      tation of competition rules to other Contracting Parties.
 ---pagebreak--- N o L 380/28                            Official Journal of the European Communities                                31. 12. 94
4.    Contracting Parties may cooperate, in the                   2.     Contracting Parties shall encourage relevant entities
enforcement of their competition rules by consulting and          to cooperate in:
exchanging information.
                                                                  (a) modernizing energy transport facilities necessary to
                                                                       the transit of energy materials and products;
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               (b) the development and operation of energy transport
important interest relevant to the purposes identified in              facilities serving the areas of more than one
this Article, the Contracting Party may notify the other               Contracting Party;
Contracting Party and may request that its competition
authorities initiate appropriate enforcement action. The
notifying Contracting Party shall include in such notifi-         (c) measures to mitigate the effects of interruptions in
cation sufficient information to permit the notified                   the supply of energy materials and products;
Contracting Party to identify the anti-competitive
conduct that is the subject of the notification and shall
                                                                  (d) facilitating the interconnection of energy transport
include an offer of such further information arid co-
                                                                       facilities.
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                 3.      Each Contracting Party undertakes that its
Contracting Party and shall accord full consideration to          provisions relating to transport of energy materials and
the request of the notifying Contracting Party in                 products and the use of energy transport facilities shall
deciding whether or not to initiate enforcement action            treat energy materials and products in transit in no less
with respect to the alleged anti-competitive conduct              favourable a manner than its provisions treat such
identified in the notification. The notified Contracting          materials and products originating in or destined for its
Party shall inform the notifying Contracting Party of its         own area, unless an existing international agreement
decision or the decision of the relevant competition au-          provides otherwise.
thorities and may if it wishes inform the notifying
Contracting Party of the grounds for the decision. If
enforcement action is initiated, the notified Contracting         4.      In the event that transit of energy materials and
Party shall advise the notifying Contracting Party of its         products cannot be achieved on commercial terms by
outcome and, to the extent possible, of any significant           means of energy transport facilities the Contracting
interim development.                                              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.
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           5.      A Contracting Party through whose area energy
business secrecy.                                                 materials and products may transit shall not be obliged
                                                                  to
7.     The procedures set forth in paragraph 5 and Article        (a) permit the construction or modification of energy
27 (1) shall be the exclusive means within this Treaty of               transport facilities; or
resolving any disputes ^hat may arise over the implemen-
tation or interpretation of this Article.
                                                                  (b) permit new or additional transit through existing
                                                                        energy transport facilities,
                          Article 7                               which it demonstrates to the other Contracting Parties
                                                                  concerned would endanger the security or efficiency of
                           Transit
                                                                   its energy systems, including the security of supply.
 1.    Each Contracting Party shall take the necessary             Contracting Parties shall, subject to paragraphs 6 and 7,
 measures to facilitate the transit of energy materials and        secure established flows of energy materials and products
 products consistent with the principle of freedom of              to, from or between the areas of other Contracting
 transit and without distinction as to the origin, desti-          Parties.
 nation or ownership of such energy materials and
 products or discrimination as to pricing on the basis of
 such distinctions, and without imposing any unreas-               6.     A Contracting Party through whose area energy
 onable delays, restrictions or charges.                           materials and products transit shall not, in the event of a
 ---pagebreak---   31. 12. 94                               Official Journal of the European Communities                               N o L 380/29
  dispute over any matter arising from that transit,                      his judgement the dispute concerns transit that is or
  interrupt or reduce, permit any entity subject to its                   has been the subject of the dispute resolution
  control to interrupt or reduce, or require any entity                   procedures set out in subparagraphs (a), to (d) and
  subject to its jurisdiaion to interrupt or reduce the                   those proceedings have not resulted in a resolution
  existing flow of energy materials and products prior to                 of the dispute.
  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            (f) The Charter Conference shall adopt standard
  such transit or permitted in accordance with the                        provisions concerning the conduct of conciliation
  conciliator's decision.                                                 and the compensation of conciliators.
                                                                     8.      Nothing in this Article shall derogate from a
  7.      The following provisions shall apply to a dispute
                                                                     Contracting Party's rights and obligations under inter-
  described in paragraph 6, but only following the
                                                                     national law including customary international law,
  exhaustion of all relevant contractual or other dispute
                                                                     existing bilateral or multilateral agreements, including
  resolution remedies previously agreed between the
                                                                     rules concerning submarine cables and pipelines.
  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:
                                                                     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
   (a) A Contracting Party party to the dispute may refer it         any measure under this Article with respect to that type
        to     the   Secretary-General     by    a    notification   of energy transport facilities. Such a Contracting Party
        summarizing the matters in dispute. The Secretary-           is, however, obliged to comply with paragraph 4.
        General shall notify all Contracting Parties of any
        such referral.
                                                                     10.       For the purposes of this Article:
   (b) Within 30 days of receipt of such a notification, the
        Secretary-General, in consultation with the parties to       (a) 'Transit' means:
        the dispute and the other Contracting Parties
        concerned, shall appoint a conciliator. Such a
        conciliator shall have experience in the matters                    (i) the carriage through the area of a Contracting
        subject to dispute and shall not be a national or                       Party, or to or from port facilities in its area for
        citizen of or permanently resident in a party to the                    loading or unloading, of energy materials and
        dispute or one of the other Contracting Parties                         products originating in the area of another State
        concerned.                                                              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
4  (c) The conciliator shall seek the agreement of the
        parties to the dispute to a resolution thereof or upon            (ii) the carriage through the area of a Contracting
        a procedure to achieve such resolution. If within 90                    Party of energy materials and products orig-
        days of his appointment he has failed to secure such                    inating in the area of another Contracting Party
        agreement, he shall recomrrrend a resolution to the                     and destined for the area of that other
        dispute or a procedure to achieve such resolution                       Contracting Party, unless the two Contracting
        and shall decide the interim tariffs and other terms                    Parties concerned decide otherwise and record
        and conditions to be observed for transit from a date                   their decision by a joint entry in Annex N. The
        which he shall specify until the dispute is resolved.                   two Contracting Parties may delete their listing
                                                                                in Annex N by delivering a joint written notifi-
                                                                                cation of their intentions to the Secretariat,
                                                                                which shall transmit that notification to all other
   (d) The Contracting Parties undertake to observe and
                                                                                Contracting Parties. The deletion shall take
         ensure that the entities under their control or juris-
                                                                                effect four weeks after such former notification.
         diction observe any         interim    decision     under
         subparagraph (c) on tariffs, terms and conditions for
         12 months following the conciliator's decision or
         until resolution of the dispute, whichever is earlier.       (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,
    (e) Notwithstanding subparagraph (b) the Secretary-                    and other fixed facilities specifically for handling
         General may elect not to appoint a conciliator if in              energy materials and products.
 ---pagebreak---  N o L 380/30                            Official Journal of the European Communities                                 31. 12. 94
                           Article 8                                2.     A Contracting Party may adopt and maintain
                                                                    programmes providing for access to public loans, grants,
                   Transfer of technology
                                                                    guarantees or insurance for facilitating trade or
                                                                    investment abroad. It shall make such facilities available,
  1.   The Contracting Parties agree to promote access to           consistent with the objectives, constraints and criteria of
 and transfer of energy technology on a commercial and              such programmes (including any objectives, constraints
 non-discriminatory basis to assist effective trade in              or criteria relating to the place of business of an
 energy materials and products and investment and to                applicant for any such facility or the place of delivery of
 implement the objectives of the Charter subject to their           goods or services supplied with the support of any such
 laws and regulations, and to the protection of intellectual       facility) for investments in the economic activity in the
 property rights.                                                  energy sector of other Contracting Parties or for
                                                                    financing trade in energy materials and products with
                                                                   other Contracting Parties. ,*
 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          3.      Contracting     Parties  shall,  in     implementing
 and related equipment and services, subject to                    programmes in economic activity in the energy sector to
 non-proliferation and other international obligations.            improve the economic stability and investment climates
                                                                   of the Contracting Parties, seek as appropriate to
                                                                   encourage the operations and take advantage of the
                           Article 9                               expertise of relevant international financial institutions.
                     Access to capital
                                                                   4.     Nothing in this Article shall prevent:
 1.    The    Contracting      Parties    acknowledge     the
 importance of open capital markets in encouraging the
 flow of capital to finance trade in energy materials and          (a) financial institutions from applying their own lending
products and for the making of and assisting with regard                or underwriting practices based on market principles
to investments in economic activity in the energy sector                and prudential considerations; or
in the areas of other Contracting Parties, particularly
those with economies in transition. Each Contracting
Party shall accordingly endeavour to promote conditions            (b) a Contracting Party from taking measures:
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                 (i) for prudential reasons, including the protection
the purpose of investment in economic activity in the                        of investors, consumers, depositors, policy-
energy sector in the areas of those other Contracting                        holders or persons to whom a fiduciary duty is
Parties, on a basis no 1 less favourable than that which it                  owed by a financial service supplier; or
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                  (ii) to ensure the integrity and stability       of  its
most favourable.                                                             financial system and capital markets.
                                                            PART III
                                       INVESTMENT PROMOTION AND PROTECTION
                          Article 10                              commitment to accord at all times "to investments of
                                                                  investors of other Contracting Parties fair and equitable
    Promotion, protection and treatment of investments            treatment. Such investments shall also enjoy the most
                                                                  constant protection and security and no Contracting
1.     Each Contracting Party shall, in accordance with           Party shall in any way impair by unreasonable or
the provisions of this Treaty, encourage and create               discriminatory measures their management, maintenance,
stable, equitable, favourable and transparent conditions          use, enjoyment or disposal. ,In no case shall such
for investors of other Contracting Parties to make                investments be accorded treatment less favourable than
investments in its area. Such conditions shall include a          that required by international law, including treaty obli-
 ---pagebreak---     31. 12. 94                               Official Journal of the European Communities                           N o L 380/31
    gâtions. Each Contracting Party shall observe any obli-            tenance, use, enjoyment or disposal, treatment nô less
    gations it has entered* into with an investor or an                favourable than that which it accords to investments of
    investment of an investor of any other Contracting                 its own investors or of the investors of any other
    Party.                                                             Contracting Party or any third State and their related
                                                                       activities including management, maintenance, use,
                                                                       enjoyment or disposal, whichever is the most favourable.
    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                   8.    The modalities of application of paragraph 7 in
    described in paragraph 3.                                          relation to programmes under which a Contracting Party
                                                                       provides grants or other financial assistance, or enters
                                                                       into contracts, for energy technology research and devel-
    3.      For the purposes of this Article, 'treatment' means        opment, shall be reserved for the supplementary treaty
    treatment accorded by a Contracting Party which is no              described in paragraph 4. Each Contracting Party shall
    less favourable than that which it accords to its own              through the Secretariat keep the Charter Conference
    investors or to investors of any other Contracting Party           informed of the modalities it applies to the programmes
    or any third State, whichever is the most favourable.              described in this paragraph.
    4.     A supplementary treaty shall, subject to conditions
    to be laid down therein, oblige each party thereto to              9.    Each State or Regional Economic Integration
    accord to investors of other parties, as regards the               Organization which signs or accedes to this Treaty shall,
    making of investments in its area, the treatment                   on the date it signs the Treaty or deposits its instrument
    described in paragraph 3. That treaty shall be open for            of accession, submit to the Secretariat a report
    signature by the States and Regional Economic Inte-                summarizing all laws, regulations or other measures
    gration Organizations which have signed or acceded to              relevant 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.                    (a) exceptions to paragraph 2; or
    5.      Each Contracting Party shall, as regards            the    (b) the programmes referred to in paragraph 8.
    making of investments in its area, endeavour to:
                                                                       A Contracting Party shall keep its report up to date by
    (a) limit to the minimum the exceptions                to   the
                                                                       promptly submitting amendments to the Secretariat. The
         Treatment described in paragraph 3;
                                                                       Charter Conference shall review these reports period-
                                                                       ically.
    (b) progressively remove existing restrictions        affecting
          investors of other Contracting Parties.
                                                                       In respect of subparagraph (a) the report may designate
'^P                                                                    parts of the energy sector in which a Contracting Party
    6. (a) A Contracung Party may, as regards the making               accords to investors of other Contracting Parties the
             of investments in its area, at any time declare           treatment described in paragraph 3.
             voluntarily to the Charier Conference, through
             the Secretariat, its intention not to introduce new
             exceptions to the treatment described in                  In respect of subparagraph (b) the review by the Charter
             paragraph 3.                                              Conference may consider the effects of such programmes
                                                                       on competition and investments.
        (b) A Contracting Party may, furthermore, at any
             time make a voluntary commitment to accord to
             investors of other Contracting Parties, as regards         10.    Notwithstanding any other provision of this
                                                                       Article, the treatment described in paragraphs 3 and 7
             the making of investments in some or all
                                                                       shall not apply to the protection of intellectual property;
             economic activities in the energy sector in its area,
                                                                       instead, the treatment shall be as specified in the corre-
             the treatment described in paragraph 3. Such
                                                                       sponding provisions of the applicable international
             commitments shall be notified to the Secretariat
                                                                        agreements for the protection of intellectual property
             and listed in Annex VC and shall be binding
                                                                       rights to which the respective Contracting Parties are
             under this Treaty.
                                                                       parties.
     7.     Each Contracting Party shall accord to investments
     in its area of investors of other Contracting Parties, and         11.    For the purposes of Article 26, the application by
     their related activities including management, main-               a Contracting Party of a trade-related investment
 ---pagebreak--- N o L 380/32                         Official Journal of the European Communities                                31. 12. 94
measure as described in Article 5 (1) and (2) to an            2.     Without prejudice to paragraph 1, an investor of a
investment of an investor of another Contracting Party         Contracting^ Party which, in any of the situations
existing at the time of such application shall, subject to     referred to in that paragraph, suffers a loss in the area of
Article 5 (3) and (4), be considered a breach of an obli-      another Contracting Party resulting from:
gation of the former Contracting Party under this part.
                                                               (a) requisitioning of its investment or part thereof by the
                                                                    latter's forces or authorities; or
12.     Each Contracting Party shall ensure that its
domestic law provides effective means for the assertion
                                                               (b) destruction of its investment or part thereof by the
of claims and the enforcement of rights with respea to
                                                                    latter's forces or authorities, which was not required
investments, investment agreements, and investment
                                                                    by the necessity of the situation;
authorizations.
                                                               shall be accorded restitution or compensation which in
                                                               either case shall be prompt, adequate and effective.
                      •  Article 11
                       Key personnel
                                                                                          Article 13
                                                                                        Expropriation
 1.   A Contracting Party shall, subject to its laws and
regulations relating to the entry, stay and work of
                                                               1.     Investments of investors of a Contracting Party in
natural persons, examine in good faith requests by
                                                               the area of any other Contracting Party shall not be
investors of another Contracting Party, and key
                                                               nationalized, expropriated or subjected to a measure or
personnel who are employed by such investors or by
                                                               measures having effect equivalent to nationalization or
investments of such investors, to enter and remain
                                                               expropriation (hereinafter referred to as 'expropriation')
temporarily in its area to engage in activities connected
                                                               except where such expropriation is:
with the making or the development, management,
maintenance, use, enjoyment or disposal of relevant
investments, including the provision of advice or key          (a) for a purpose which is in the public interest;
technical services.
                                                               (b) not discriminatory;
2.     A Contracting Party shall permit investors of
 another Contracting Party which have investments in its       (c) carried out under due process of law; and
area, and investments of such investors, to employ any
key person of the investor's or the investment's jchoice       (d) accompanied by the payment of prompt, adequate
 regardless of nationality and citizenship provided that            and effective compensation.
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,           Such compensation shall amount to the fair market value
conditions and time limits of the permission granted to        of the investment expropriated at the time immediately
such key person.                                               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').
                         Article 12
                                                               Such fair market value shall at the request of the investor
                  Compensation for losses                      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
 1.    Except where Article 13 applies, an investor of any     interest at a commercial rate established on a market
 Contracting Party which suffers a loss with respect to        basis from the date of expropriation until the date of
 any investment in the area of another Contracting Party       payment.
 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         2.    The investor affected shall have a right to prompt
 Party, as regards restitution, indemnification, compen-        review, under the law of the Contracting Party making
 sation or other settlement, treatment which is the .most       the expropriation, by a judicial or other competent and
 favourable of that which that Contracting Party accords        independent authority of that Contracting Party, of its
 to any other investor, whether its own investor, the           case, of the valuation of its, investment, and of the
 investor of any other Contracting Party, or the investor       payment of compensation, in accordance with the prin-
 of any third State.                                            ciples set out in paragraph 1.
 ---pagebreak--- 31. 12. 94                            Official Journal of the European Communities                              N o L 380/33
3.     For the avoidance of doubt, expropriation shall          5.     Notwithstanding paragraph 2, Contracting Parties
include situations where» a Contracting Party expro-            which are Sûtes that were constituent parts of the
priates the assets of a company or enterprise in its area in    former Union of Soviet Socialist Republics may provide
which an investor of any other Contracting Party has an         ih agreements concluded between them that transfers, of
investment, including through the ownership of shares.          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
                          Article 14
                                                                investments of investors of the Contracting Parties which
              Transfers related to investments                  have entered into such agreements or investments of
                                                                investors of any third State.
1.     Each Contracting Party shall with respect to
investments in its area of investors of any other
                                                                6.     Notwithstanding subparagraph 1 (b), a Contracting
Contracting Party guarantee the freedom of transfer into
                                                                Party may restrict the transfer of a return in kind in
and out of its area, including the transfer of:
                                                                circumstances where the Contracting Party is permitted
                                                                pursuant to Article 29 (2) (a) or the GATT and Related
(a) the initial capital plus any additional capital for the     Instruments to restrict or prohibit the exportation or the
     maintenance and development of an investment;              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
(b) returns;                                                    or specified in an investment agreement, investment
                                                                authorization, or other written agreement between the
(c) payments under a contract, including amortization           Contracting Party and either an investor of another
     of principal and accrued interest payments pursuant        Contracting Party or its investment.
     to a loan agreement;
(d) unspent earnings and other remuneration of                                              Article 15
     personnel engaged from abroad in connection with
                                                                                           Subrogation
     that investment;
(e) proceeds from the sale or liquidation of all or any         1.     If a Contracting Party or its designated agency
     part of an investment;                                     (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
(f) payments arising out of the settlement of a dispute;        referred to as the 'Party Indemnified') in the area of
                                                                another Contracting Party (hereinafter referred to as the
(g) payments of compensation pursuant to Articles 12            'Host P a r t / ) , the Host Party shall recognize:
     and 13.
                                                                (a) the assignment to the Indemnifying Party of all the
                                                                    rights and claims in respect of such investment; and
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                                (b) the right of the Indemnifying Party to exercise all
                                                                     such rights and enforce such claims by virtue of
                                                                    subrogation.
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
                                                                2.     The Indemnifying Party shall be entitled in all
absence of a market for foreign exchange, the rate to be
                                                                circumstances to:
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,           (a) the same treatment in respect of the rights and claims
whichever is more favourable to the investor.                        acquired by it by virtue of the assignment referred to
                                                                     in paragraph 1; and
4.     Notwithstanding paragraphs 1 to 3, a Contracting
Party may protect the rights of creditors, or ensure            (b) the same payments due pursuant to those rights and
compliance with laws on the issuing, trading and dealing             claims,
in securities and the satisfaction of judgements in civil,
administrative and criminal adjudicatory proceedings,
through the equitable, non-discriminatory, and good             as the Party Indemnified was entitled to receive by virtue
faith application of its laws and regulations.                  of this Treaty in respect of the investment concerned.
 ---pagebreak--- N o L 380/34                          Official Journal of the European Communities                                    31. 12. 94
3.     In any proceeding pursuant to Article 26, a                                           Article 17
Contracting Parry shall not assert as a defence,
counterclaim, right of set-off or for any other reason,            Non-application of Part III in certain circumstances
that indemnification or other compensation for all or
part of the alleged damages has been received or will be
                                                                Each Contracting Party reserves the right to deny the
received pursuant to an insurance or guarantee contract.        advantages of this part to:
                         Article 16                             1. a legal entity if citizens or nationals of a third State
               Relation to other agreements                        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
Where two or more Contracting Parties have entered
into a prior international agreement, or enter into a
subsequent international agreement, whose terms in
                                                                2. an investment, if the denying Contracting Party estab-
either case concern the subject matter of Part III or V of
                                                                   lishes that such investment is an investment of an
this. Treaty;
                                                                    investor of a third State with or as to which the
                                                                   denying Contracting Party:
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               (a) does not maintain a diplomatic relationship; or
    dispute resolution with respect thereto under that
   agreement; and                                                  (b) adopts or maintains measures that:
2. nothing in such terms of the other agreement shall be
   construed to derogate from any provision of Part III                   (i) prohibit transactions with investors of that
   or V of this Treaty or from any right to dispute                            State; or
   resolution with respect thereto under this Treaty;
                                                                         (ii) would be violated or circumvented if the
where any such provision is more favourable to the                             benefits of this part were accorded to
investor or investment.                                                        investors of that State or to their investments.
                                                          PART rv
                                              MISCELLANEOUS PROVISIONS
                         Article 18                             energy resources, the optimalization of their recovery
                                                                and the rate at which they may be depleted or otherwise
            Sovereignty over energy resources                   exploited, to specify and enjoy any taxes, royalties or
                                                                other financial payments payable by virtue of such explo-
                                                                ration and exploitation, and to regulate the environ-
1.    The Contracting Parties recognize State sover-
                                                                mental and safety aspects of such exploration, devel-
eignty and sovereign rights over energy resources. They
                                                                opment and reclamation within its area, and to
reaffirm that these must be exercised in accordance with
                                                                participate in such exploration and exploitation, inter
and subject to the rules of international law.
                                                                alia, through direct participation by the government or
                                                                through State enterprises.
2.     Without affecting the objectives of promoting
access to energy resources, and exploration and devel-
opment thereof on a commercial basis, the Treaty shall
in no way prejudice the rules in Contracting Parties
governing the system of property ownership of energy
resources.                                                      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
3.     Each State continues to hold in particular the rights    criteria      authorizations,     licences,  concessions     and
to decide the geographical areas within its area to be          contracts to prospect and explore for or to exploit or
made available for exploration and development of its           extract energy resources.
 ---pagebreak--- 31. 12. 94                              Official Journal of the European Communities                            N o L 380/35
                          Article 19                              (g) promote and cooperate in the research, development
                                                                       and application of energy efficient and environ-
                    Environmental aspects                              mentally sound technologies, practices and processes
                                                                       which will minimize harmful environmental impacts
                                                                       of ail aspects of the energy cycle in an economically
1.     In pursuit of sustainable development and taking                efficient manner;
into account its obligations under those international
agreements concerning the environment to which it is
party, each Contracting Party- shall strive to minimize in        (h) encourage favourable conditions for the transfer and
an economically efficient manner harmful environmental                 dissemination of such technologies consistent with
impacts occurring either within or outside its area from               the adequate and effective protection of intellectual
all operations within the energy cycle in its area, taking            property rights;
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
                                                                  (i) promote the transparent assessment at an early stage
precautionary measures to prevent or minimize environ-
                                                                       and prior to decision, and subsequent monitoring, of
mental degradation. The Contracting Parties agree that
                                                                       environmental impacts of environmentally significant
the polluter in the areas of Contracting Parties, should,
                                                                       energy investment projects;
in principle, bear the cost of pollution, including trans-
boundary pollution, with due regard to the public
interest and without distorting investment in the energy
cycle or international trade. Contracting Parties shall           (j) promote international awareness and information
accordingly:                                                           exchange on Contracting Parties' relevant environ-
                                                                       mental programmes and standards and on the
                                                                       implementation of those programmes and standards;
(a) take account of environmental               considerations
     throughout the formulation and implementation of             (k) participate, upon request, and within their available
     their energy policies;                                           resources, in the development and implementation of
                                                                      appropriate environmental programmes in the
                                                                      Contracting Parties.
(b) promote market-oriented price formation and a
    fuller reflection of environmental costs and benefits
    throughout the energy cycle;
                                                                  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
(c) having regard to Article 34 (4), encourage coop-              arrangements for the consideration of such disputes do
     eration in the attainment of the environmental               not exist in other appropriate international fora, be
     objectives of the Charter and cooperation in the field       reviewed by the Charter Conference aiming at a
     of international environmental standards for the             solution.
     energy cycle, taking into account differences in
     adverse effects and abatement costs between
     Contracting Parties;
                                                                  3.     For the purposes of this Article:
(d) have particular regard to*- improving energy effi-
                                                                  (a) 'energy cycle' means the entire energy chain,
    ciency, to developing and using renewable energy
                                                                      including activities related to prospecting for, explo-
    sources, to promoting the use of cleaner fuels and to
                                                                      ration, production, conversion, storage, transport,
    employing technologies and technological means that
                                                                      distribution and consumption of the various forms of
    reduce pollution;
                                                                      energy, and the treatment and disposal of wastes, as
                                                                      well as the decommissioning, cessation or closure of
                                                                      these activities, minimizing harmful environmental
(e) promote the collection           and    sharing    among          impacts;
     Contracting Parties of information on environ-
     mentally sound and economically efficient energy
     policies and cost-effective practices and. technologies;     (b) 'environmental impact' means any effect caused by a
                                                                      given activity on the environment, including human
                                                                       health and safety, flora, fauna, soil, air, water,
(f) promote public awareness of the environmental                     climate, landscape and historical monuments or
     impacts of energy systems, of the scope for the                  other physical structures or the interactions among
    prevention or abatement of their adverse environ-                  these factors; it also includes effects on cultural
     mental impacts, and of the costs associated with                  heritage or socio-economic conditions resulting from
    various prevention or abatement measures;                         alterations to those factors;
 ---pagebreak--- N o L 380/36                           Official Journal of the European Communities                                  31. 12. 94
(c). 'improving energy efficiency' means acting to               (a) an advantage accorded by a Contracting Party
     maintain the same unit of output (of a good or                 . pursuant to the tax provisions of any convention,
     service) without reducing the quality or performance             agreement or arrangement described in subparagraph
     of the output, while reducing the amount of energy               (7) (a) (ii); or
     required to produce that output;
(d) 'cost-effective' means to achieve a defined objective        (b) any taxation measure aimed at ensuring the effective
     at the lowest cost or to achieve the greatest benefit at         collection of taxes, except where the measure of a
     a given cost.                                                    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 20                                 Article 7 (3).
                        Transparency
                                                                 3.     Article 10 (2) and (7) shall apply to taxation
 1.    Laws, regulations, judicial decisions and adminis-        measures of the Contracting Parties other than those on
trative rulings of general application which affect trade        income or on capital, except that such provisions shall
in energy materials and products are, in accordance with         not apply to:
Article 29 (2) (a), among the measures subject to the
transparency disciplines of the GATT and relevant
Related Instruments.
                                                                 (a) impose most favoured nation obligations with respect
                                                                      to advantages accorded by â Contracting Party
                                                                      pursuant to the tax provisions of any convention,
2.     Laws, regulations, judicial decisions and adminis-
                                                                      agreement or arrangement described in subparagraph
trative rulings of general application made effective by
                                                                      (7) (a) (ii) or resulting from membership of any
any Contracting Party, and agreements in force between
                                                                      Regional Economic Integration Organization; or
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              (b) a n / taxation measure aimed at ensuring the effective
paragraph shall not require any Contracting Party to                  collection of taxes, except where the measure
disclose confidential information which would impede                  arbitrarily discriminates against an investor of
law enforcement or otherwise be contrary to the public                another Contracting Party or arbitrarily restricts
interest or would prejudice the legitimate commercial                 benefits accorded under the investment provisions of
interests of any investor.                                            this Treaty.
3.     Each Contracting Party shall designate one or more        4.     Article 29 (2) to (6) shall apply to taxation
enquiry points to which requests for information about           measures other than those on income or on capital.
the abovementioned laws, regulations, judicial decisions
and administrative rulings may be addressed and shall
communicate promptly such designation to the Secre-              5. (a) Article 13 shall apply to taxes.
tariat which shall make it available on request.
                                                                     (b) Whenever an issue arises pursuant to Article 13,
                           Article 21                                     to the extent it pertains to whether a tax
                                                                          constitutes an expropriation or whether a tax
                           Taxation                                       alleged to constitute an expropriation is discrimi-
                                                                          natory, the following provisions shall apply:
1.     Except as otherwise provided in this Article,
nothing in this Treaty shall create rights or impose obli-
gations with respect to taxation measures of the                            (i) the investor or the Contracting Party alleging
Contracting Parties. In the event of any inconsistency                          expropriation shall refer the issue of whether
between this Article and any other provision of the                             the tax is an expropriation or whether the tax
Treaty, this Article shall prevail to the extent of the                         is discriminatory to the relevant competent
inconsistency.                                                                  tax authority. Failing such referral by the
                                                                                investor or the Contracting Party, bodies
                                                                                called upon to settle disputes pursuant to
2.     Article 7 (3) shall apply to taxation measures other                     Article 26 (2) (c) or 27 (2) shall make a
than those on income or on capital, except that such                            referral to the relevant competent tax auth-
provision shall not apply to:                                                   orities;
 ---pagebreak--- 31. 12. 94                               Official Journal of the European Communities                              N o L 380/37
          (ii) the competent tax authorities shall, within a            capital or on elements of income or of capital,
               period of six months of such referral, strive            including taxes on gains from the alienation of
               to resolve the issues so referred. Where                 property, taxes on estates, inheritances and gifts, or
               non-discrimination issues are .concerned, the            substantially similar taxes, taxes on the total amounts
               competent tax authorities shall apply the                of wages or salaries paid "by enterprises, as well as
               non-discrimination provisions of the relevant            taxes on capital appreciation.
               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              (c) A 'competent tax authority means the competent
               Contracting Parties concerned, they shall                authority pursuant to a double taxation agreement in
               apply the      non-discrimination     principles         force between the Contracting Parties or, when no
               pursuant to the Model Tax Convention on                  such agreement is in force, the minister or ministry
               Income and Capital of the Organization for               responsible for taxes or, their authorized represen-
               Economic Cooperation and Development;                    tatives.
         (iii) bodies called upon to settle disputes pursuant      (d) For the* avoidance of doubt, the terms 'tax
               to Article 26 (2) (c) or 27 (2) may take into            provisions' and 'taxes' do not include customs duties. •
               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                                      Article 22
               subparagraph (b) (ii) by the competent tax
               authorities regarding whether the tax is                            State and privileged enterprises
               discriminatory. Such bodies may also take
               into account any conclusions arrived at by
               the competent tax authorities after the expiry      1.     Each Contracting Party shall ensure that any State
               of the six-month period;                            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
         (iv) under no circumstances shall involvement of          Contracting Party's obligations pursuant to Part III of
               the competent tax authorities, beyond the           this Treaty.
               end of the six-month period referred to in
               subparagraph (b) (ii), lead «to a delay of
               proceedings pursuant to Articles 26 and 27.
                                                                   2.     No Contracting Party shall encourage or         require
                                                                   such a State enterprise to conduct its activities in  its area
6.     For the avoidance of doubt, Article . 14 shall not          in a manner inconsistent with the Contracting          Party's
limit the right of a Contracting Party to impose or                obligations pursuant to other provisions of this      Treaty.
collect a tax by withholding or other means.
7.     For the purposes of this Article:                           3.     Each Contracting Party shall ensure that if it estab-
                                                                   lishes or maintains an entity and entrusts the entity with
                                                                   regulatory, administrative         or   other    governmental
(a) The term 'taxation measure' includes:                          authority, such entity shall exercise that authority in a
                                                                   manner consistent with the Contracting Party's obli-
                                                                   gations pursuant to this Treaty.
      (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                                                     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
     (ii) any provision relating to taxes of any convention         inconsistent with the Contracting Party's obligations
           for the avoidance of double taxation or of any           pursuant to this Treaty.
           other international agreement or arrangement by
           which the Contracting Party is bound.
                                                                    5.    For the purposes of this Article, 'entity' includes
(b) There shall be regarded as taxes on income or on                any enterprise, agency or other organization or indi-
     capital all taxes imposed on total income, on total            vidual.
 ---pagebreak--- N o L 380/38                            Official Journal of the European Communities                                31. 12. 94
                          Article 23                                   individuals or groups or their investments and
                                                                       notifjed to the Secretariat as such, provided thai
           Observance by sub-national authorities
                                                                       such measure:
1.     Each Contracting Party is fully responsible
pursuant to this Treaty for the observance of all                      (A) has no significant impact on that Contracting
provisions of the Treaty, and shall take such reasonable                     Party's economy; and
measures as may be available to it to ensure such
observance by regional and local governments and auth-
orities within its area.                                               (B) does not discriminate between investors of an)
                                                                            other Contracting Party and investors of thai
                                                                             Contracting Party not included among those
2.     The dispute settlement provisions in Parts II, IV                     for whom the measure is intended;
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            provided that no such measure shall constitute s
local governments or authorities within the area of the           disguised restriction on economic activity in the energy
Contracting Party.                                                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
                          Article 24
                                                                  impair any benefit one or more other Contracting Partie;
                          Exceptions                              may reasonably expect pursuant to this Treaty to ar
                                                                  extent greater than is strictly necessary to the stated end
1. This Article shall not apply to Articles 12, 13
and 29.
                                                                  3.    The provisions of this Treaty other than those
                                                                  referred to in paragraph 1 shall not be construed tc
2.     The provisions of this Treaty other than:                  prevent any Contraaing Party from taking any measure
                                                                  which it considers necessary:
(a) those referred to in paragraph 1 ; and
                                                                  (a) for the protection of its essential security interest
(b) with respect to subparagraph (i), Part III of the                 including those:
     Treaty;
                                                                      (i) relating to the supply of energy materials anc
shall not preclude any Contracting Party from adopting                     products to a military establishment; or
or enforcing any measure:
                                                                      (ii) taken in time of war, armed conflict or othe
  (i) necessary to protect human, animal or plant life or
                                                                           emergency in international relations;
      health;
 (ii) essential to the-^acquisition or distribution of energy     (b) relating to the implementation of national policie
      materials and products in conditions of short supply            respecting the non-proliferation of nuclear weapon
      arising from causes outside the control of that                 or other nuclear explosive devices or needed to fulfi
      Contracting Party, provided that any such measure               its obligations pursuant to the Treaty on th>
      shall be consistent with the principles that;                   Non-Proliferation of Nuclear Weapons, the Nuclea
                                                                      Suppliers Guidelines, and other international nuclea
                                                                      non-proliferation obligations or understandings; or
      (A) all other Contracting Parties are entitled to an
           equitable share of the international supply of
           such energy materials and products; and
                                                                  (c) for the maintenance of public order.
      (B) any such measure that is inconsistent with this
           Treaty shall be discontinued as soon as the            Such measure shall not constitute a disguised restrictio
           conditions giving rise to it have ceased to exist;     on transit.
(iii) designed to benefit investors who are aboriginal            4.    The provisions of this Treaty which accord mo:
      people or socially or economically disadvantaged            favoured nation treatment shall not oblige an
 ---pagebreak--- 31. 12. 94                             Official Journal of the European Communities                              N o L 380/39
Contracting Parry to extend to the investors of any other        to an Economic Integration Agreement (hereinafter
Contracting Party any preferential treatment:                    referred to as *EIA') to extend, by means of most
                                                                 favoured nation treatment, to another Contracting Party
(a) resulting from its membership of a free-trade area or        which is not a party to that EIA, any preferential
    customs union; or                                            treatment applicable between the parties to that EIA as a
                                                                 result of their being parties thereto.
(b) which is accorded by a bilateral or multilateral
    agreement      concerning      economic      cooperation     2.    For the purposes of paragraph 1, 'EIA' means an
    between Sûtes that were constituent parts of the             agreement substantially liberalizing, inter alia, trade and
    former Union of Soviet Socialist Republics pending           investment, by providing for the absence or elimination
    the establishment of their mutual economic relations         of substantially all discrimination between or among
    on a definitive basis.                                       parties thereto through the elimination of existing
                                                                 discriminatory measures and/or the prohibition of new
                                                                 or more discriminatory measures, either at the entry into
                          Article 25
                                                                 force of that agreement or on the basis of a reasonable
             Economic Integration Agreements                     time frame.
1.    The provisions of this Treaty shall not be so              3.    This Article shall not affect the application of the
construed as to oblige a Contracting Party which is party        GATT and Related Instruments according to Article 29.
                                                           PART V
                                                   DISPUTE SETTLEMENT
                          Article 26                                (b) (i) The Contracting Parties listed in Annex ID
                                                                              do not give such unconditional consent where
Settlement    of  disputes between an investor and         a                  the investor .has previously submitted the
                     Contracting Party                                        dispute under subparagraph (2) (a) or (b).
1.    Disputes between a Contracting Party and an
investor of another Contracting Party relating to an                     (ii) For the      sake . of     transparency,   each
investment of the latter in the area of the former, which                     Contracting Party that is listed in Annex ID
concern an alleged breach of an obligation of the former                      shall provide a written statement of its
under Part III shall, if possible, be settled amicably.                       policies, practices and conditions in this
                                                                              regard to the Secretariat no later than the
                                                                              date of the deposit of its instrument of ratifi-
                                                                              cation, acceptance or approval in accordance
2.    If such disputes can not be settled according to the                    with Article 39 or the deposit of its
provisions of paragraph 1 within a period of three                            instrument of accession in accordance with
months from the date on which either party to the                             Article 41.
dispute requested amicable settlement, the investor party
to the dispute may choose to submit it for resolution:
                                                                         (c) A Contracting Party listed in Annex LA does
                                                                              not give such unconditional consent with
(a) to the courts or administrative tribunals of the
                                                                              respect to a dispute arising under the last
    Contracting Party party to the dispute;
                                                                              sentence of Article 10 (1).
(b) in accordance with any applicable, previously agreed
    dispute settlement procedure; or                             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
(c) in accordance with the following paragraphs of this          the dispute to be submitted to:
    Article.
                                                                 (a) (i) the International Centre for Settlement of
3. (a) Subject only to subparagraphs (b) and (c), each                     Investment Disputes, established pursuant to the
        Contracting Party hereby gives its unconditional                   Convention on the Settlement of Investment
        consent to the submission of a dispute to inter-                   Disputes between States and Nationals of other
        national arbitration or conciliation in accordance                 States opened for signature at Washington, 18
        with the provisions of this Article.                               March 1965 (hereinafter referred to as the 'Icsid
 ---pagebreak--- N o L 380/40                            Official Journal of the European Communities                                 31. 12. 94
          Convention'), if the Contracting Party of the           Treaty and applicable rules and principles of inter-
          investor and the Contraaing Party party to the          national law^
          dispute are both parties to the Icsid Convention;
          or
                                                                  7.      An investor other than a natural person which has
                                                                  the nationality of a Contracting Party party to the
    (ii) the International Centre for Settlement of               dispute on the date of the consent in writing referred to
          Investment Disputes, established pursuant to the        in paragraph 4 and which, before a dispute between it
          Convention referred to in subparagraph (a) (i),         and that Contracting Party arises, is controlled by
          under the rules governing the Additional Facility       investors of another Contracting Party, shall for the
          for the Administration of Proceedings by the            purpose of Article 25 (2) (b) of the Icsid Convention be
          Secretariat of the Centre (hereinafter referred to      treated as a 'national of another Contracting State' and
          as the 'Additional Facility Rules'), if the             shall for the purpose of Article 1 (6) of the Additional
          Contracting Party of the investor or the                Facility Rules be treated as a 'national of another State'.
          Contracting Party party to the dispute, but not
          both, is a party to the Icsid Convention;
                                                                  8.      The awards of arbitration, which may include an
(b) a sole arbitrator or ad hoc arbitration tribunal estab-       award of interest, shall be final and binding upon the
    lished under the Arbitration Rules of the United              parties to the dispute. An award of arbitration
                                                                  concerning a measure of a sub-national government or
    Nations Commission on International Trade Law
                                                                  authority of the disputing Contracting Party shall
    (hereinafter referred to as 'Uncitral'); or
                                                                  provide that the Contracting Party may pay monetary
                                                                  damages in lieu of any other remedy granted. Each
(c) an arbitra] proceeding under the Arbitration Institute        Contracting Party shall carry out without delay any such
    of the Stockholm Chamber of Commerce.                         award and shall. make provision for the effective
                                                                  enforcement in its area of such awards.
5. (a) The consent given in paragraph 3 together with,
        the written consent of the investor given pursuant                                   Article 27
        to paragraph 4 shall be considered to satisfy the
        requirement for:                                               Settlement of disputes between Contracting Parties
          (i) written consent of the parties to a dispute for      1.     Contracting Parties shall endeavour to settle
              purposes of Chapter II of the Icsid                 disputes concerning the application or interpretation of
              Convention and for purposes of the                  this Treaty through diplomatic channels.
              Additional Facility Rules;
                                                                  2.      If a dispute has not been settled in accordance with
         (ii) an 'agreement in writing' for purposes of           paragraph 1 within a reasonable period of time, either
              Article II of the United Nations Convention         party thereto may, except as otherwise provided in this
              on the Recognition and Enforcement of               Treaty or agreed in writing by the Contracting Parties,
              Foreign Arbitral Awards, done at New York,          and except as concerns the application or interpretation
               10 June 1958 (hereinafter referred to as the       of Article 6 or Article 19 or, for Contracting Parties
              'New Yorl$ Convention'); and                         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.
        (iii) 'the parties to a contract (to) have agreed in
              writing' for the purposes of Article 1 of the
              Uncitral Arbitration Rules.
                                                                   3.     Such an ad hoc arbitral tribunal shall be constituted
                                                                   as follows:
   (b) Any arbitration pursuant to this Article shall at
        the request of any party to the dispute be held in         (a) The Contracting Party instituting the proceedings
        a State that is a party to the New York                         shall appoint one member of the tribunal and inform
        Convention. Claims submitted to arbitration                     the other Contracting Party to the dispute of its
         hereunder shall be considered to arise out of a                appointment within 30 days of receipt of the notice
        commercial relationship or transaction for the                  referred to in paragraph 2 by the other Contracting
        purposes of Article I of that Convention.                       Party.
6.    A tribunal established pursuant to paragraph 4 shall          (b) Within 60 days of the receipt of the written notice
decide the issues in dispute in accordance with this                     referred to in paragraph 2, the other Contracting
 ---pagebreak---    31. 12. 94                             Official Journal of the European Communities                             N o L 380/41
        Party parry to the dispute shall appoint one member.        (g) The tribunal shall decide the dispute in accordance
        If the appointment is not made within the time limit             with this Treaty and applicable rules and principles
       prescribed, the Contracting Party having instituted               of international law.
        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              (h) The arbitral award shall be final and binding upon
       subparagraph (d).                                                 the Contracting Parties parties to the dispute.
   (c) A third member, who may not be a. national or
        citizen of a Contraaing Party party to the dispute,         (i) Where, in making an award, a tribunal finds that a
       shall be appointed by the Contracting Parties parties             measure of a regional or local government or
        to the dispute. That member shall be the President of          - authority within the area of a Contracting Party
        the tribunal. If, within 150 days of the receipt of the          listed in Part I of Annex P is not in conformity with
        notice referred to in paragraph 2, the Contracting               this Treaty, either party to the dispute may invoke
        Parties are unable to agree on the appointment of a              the provisions of Part II of Annex P.
        third member, that appointment shall be made, in
        accordance with subparagraph (d), at the request of
                                                                    (j) The expenses of the tribunal, including the remun-
       either Contracting Party submitted within 180 days
                                                                         eration of its members, shall be borne in equal shares
       of the receipt of that notice.
                                                                         by the Contracting Parties parties to the dispute. The
                                                                         tribunal may, however, at its discretion direct that a
•9 (d) Appointments requested to be made in accordance                   higher proportion of the costs be paid by one of the
       with this paragraph shall be made by the Secretary-               Contracting Parties parties to the dispute.
       General of the Permanent Court of International
       Arbitration within 30 days of the receipt of a request
       to do so. If the Secrecary-General is prevented from         (k) Unless the Contracting Parties parties to the dispute
       discharging this task, the appointments shall be made             agree otherwise, the tribunal shall sit in The Hague,
       by the First Secretary of the Bureau. If the latter, in           and use the premises and facilities of the Permanent
       turn, is prevented from discharging this task, the                Court of Arbitration.
       appointments shall be made by the most senior
       deputy.
                                                                    (1) A copy of thé award shall be deposited with the
   (e) Appointments        made      in    accordance      with          Secretariat which shall make it generally available.
       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.                                                                             Article 28
                                                                         Non-application of Article 27 to certain disputes
   (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         A dispute between Contracting Parties with respea to
       modified by the Contracting Parties parties to the           the application or interpretation of Article 5 or 29 shall
       dispute or by the arbitrators. The tribunal shall take       not be settled pursuant to Article 27 unless the
       its decisions by a majority vote of its members.             Contracting Parties parties to the dispute so agree.
                                                              PART VI
                                                   TRANSITIONAL PROVISIONS
                             Article 29                             2. (a) Trade in energy materials and products between
                                                                             Contracting Parties at least one of which is not a
            Interim provisions on trade-related matters                      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
   1. The provisions of this Article shall apply to trade in                 provisions   of   GATT       1947    and    Related
   energy materials and products while any Contracting                       Instruments, as applied on 1 March 1994 and
   Party is not a party to the G A T T and Related                           practised with regard to energy materials and
   Instruments.                                                              products by parties to GATT 1947 among them-
 ---pagebreak---  N o L 380/42                            Official Journal of the European Communities                                  31. 12. 94
         selves, as if all Contracting Parties were parties to          with the applicable provisions of the GATT other
         GATT 1947 and Related Instruments.                              than those, provisions of GATT 1947 and Related
                                                                         Instruments listed in Annex G and the corresponding
                                                                         provisions of GATT 1994 and Related Instruments;
    (b) Such trade of a Contracting Party which is a State               or
         that was a constituent part of the former Union of
         Soviet Socialist Republics may instead be
         governed, subjea to the provisions of Annex                (b) it has, to the fullest extent practicable under its legis-
         TFU, by an agreement between two or more such                  lative procedures, notified the Secretariat of its
         Sûtes, until 1 December 1999 or the admission of               proposal for such an increase, given other interested
         that Contraaing Party to the GATT, whichever is                Contraaing Parties reasonable opportunity for
         the earlier.                                                   consultation with respect to its proposal, and
                                                                        accorded consideration to any representations from
                                                                        such Contraaing Parties.
    (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.             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
3.     Each signatory to this Treaty, and each State or            developments in the world trading system, a text of an
Regional Economic Integration Organization acceding                amendment to this Treaty which shall, subject to
to this Treaty, shall on the date of its signature or of its       conditions to be laid down therein, commit each
deposit of its instrument of accession provide to the              Contracting Party not to increase such tariffs or charges
Secretariat a list of all tariff rates and other charges           beyond the level prescribed under that amendment.
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
                                                                   7.     Annex D shall apply to disputes regarding
deposit. Any changes to such rates or other charges shall
                                                                   compliance with provisions applicable to trade pursuant
be notified to the Secretariat, which shall inform the
                                                                   to this Article and, unless both Contracting Parties agree
Contracting Parties of such changes.
                                                                   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
4.     Each Contracting Party shall endeavour not to               apply to any dispute between Contracting Parties, the
increase any tariff rate or other charge levied at the time        substance of which arises under an agreement that:
of importation or exportation:
                                                                   (a) has been notified in accordance with and meets the
(a) in the case of the importation of energy materials                  other requirements of subparagraph 2 (b) and Annex
     and products described in Part I of the schedule                  TFU; or
     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
                                                                   (b) establishes a free-trade area or a customs union as
     the GATT;
                                                                        described in Article XXIV of the GATT.
(b) in the case of the exportation of energy materials
     and products, and that of their importation if the
     Contracting Party is not a party to the GATT, above                                      Article 30
     the level most recently notified to the Secretariat,             Developments in international trading arrangements
     except as permitted by the provisions made
     applicable by subparagraph 2 (a).
                                                                  Contracting Parties undertake that in the light of the
                                                                  results of the Uruguay Round of Multilateral Trade
5.     A Contracting Party may increase such tariff rate          Negotiations embodied principally in the Final Act
or other charge above the level referred to in paragraph          thereof done at Marrakesh, 15 April 1994, they will
4 only if:                                                        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
(a) in the case of a rate or other charge levied at the           the adoption of any such amendments by the Charter
     time of importation, such action is not inconsistent         Conference.
 ---pagebreak---    31. 12. 94                               Official Journal of the European Communities                           N o L 380/43
                             Article 31                               such temporary suspension be extended or that any
                                                                      further temporary suspension not previously listed in
                    Energy-related equipment                          Annex T be introduced, the decision on a request to
                                                                      amend Annex T shall be made by the Charter
   The provisional Charter Conference shall at its first              Conference.
   meeting commence examination of the inclusion of
   energy-related equipment in the trade provisions of this
   Treaty.
                                                                      4.    A Contracting Party which has invoked transitional
                                                                      arrangements shall notify the Secretariat no less often
                                                                      than once every 12 months:
                             Article 32
                    Transitional arrangements
                                                                      (a) of the implementation of any measures listed in its
                                                                           Annex T and of its general progress to full
   1.     In recognition of the need for time to adapt to the              compliance;
   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
                                                                      (b) of the progress it expects to make during the next 12
   following provisions of this Treaty, subject to the
                                                                           months towards full compliance with its obligations,
   conditions in paragraphs 3 to 6:
                                                                           of any problem it foresees and of its proposals for
ft                                                                         dealing with that problem;.
   Article 6 (2) and (5)
   Article 7 (4)                                                      (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,
   Article 9 (1)                                                           or to deal with any problem notified pursuant to
                                                                           subparagraph (b) as well as to promote other
   Article 10 (7) — specific measures                                      necessary market-oriented reforms and modern-
                                                                           ization of its energy sector;
   Article 14 (1) (d) — related only to transfer of unspent
   earnings
                                                                      (d) of any possible need to make a request of the kind
                                                                           referred to in paragraph 3.
   Article 20 (3)
   Article 22 (1) and (3)                                                    The Secretariat shall:
   2.     Other Contracting Parties shall assist any
   Contracting Party which has suspended full compliance              (a) circulate to all Contracting Parties the notifications
   pursuant to paragraph 1 to achieve the conditions under                 referred to in paragraph 4;
   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,           (b) circulate and aaively promote, relying where appro-
   notified pursuant to subparagraph 4 (c) including, where                priate on arrangements existing within other inter-
   appropriate,      through      bilateral     or     multilateral        national organizations, the matching of needs for
   arrangements.                                                           and offers of technical assistance referred to in
                                                                           paragraph 2 and subparagraph 4 (c);
   3.     The applicable provisions, the stages towards full
   implementation of each, the measures to be taken and
                                                                      (c) circulate to all Contraaing Parties at the end of each
   the date or, exceptionally, contingent event, by which
                                                                           six-month period a summary of any notifications
   each stage shall be completed and measure taken are
                                                                           made pursuant to subparagraph 4 (a) or (d).
    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.                6.    The Charter Conference shall annually review the
   Contracting Parties which have temporarily suspended                progress by Contracting Parties towards implementation
    full compliance pursuant to paragraph 1 undertake to               of the provisions of this Article and the matching of
    comply fully with the relevant obligations by Î July 2001.         needs and offers of technical assistance referred to in
    Should a Contracting Party find it necessary, due to               paragraph 2 and subparagraph 4 (c). In the course of
    exceptional circumstances, to request that the period of           that review it may decide to take appropriate action.
 ---pagebreak--- N o L 380/44                          Official Journal of the European Communities                                31. 12. 94
                                                          PART VII
                                             STRUCTURE AND INSTITUTIONS
                         Article 33                             'Charter   Conference') at which each Contracting Party
                                                                shall be   entitled to have one representative. Ordinary
       Energy Charter Protocols and Declarations
                                                                meetings    shall be held at intervals determined by the
                                                                Charter    Conference.
1. The Charter Conference may authorize the
negotiation of a number of Energy Charter Protocols or
Declarations in order to pursue the objectives and prin-        2.    Extraordinary meetings of the Charter Conference
ciples of the Charter.                                          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
2.    Any signatory to the Charter may participate in
                                                                request being communicated to the Contracting Parties
such negotiation.
                                                                by the Secreuriat, it is supported by at least one-third of
                                                                the Contracting Parties.
3.    A State or Regional Economic Integration Organ-
ization shall not become a party to a Protocol or
Declaration unless it is, or becomes at the same time, a         3.   The functions of the Charter Conference shall be
signatory to the Charter and a Contracting Party to this        to:
Treaty.
                                                                 (a) carry out the duties assigned to it by this Treaty and
4.    Subject to paragraph 3 and subparagraph 6 (a),                  any Protocols;
final provisions applying to a Protocol shall be defined in
that Protocol.                                                   (b) keep under review and facilitate the implementation
                                                                      of the principles of the Charter and of the
                                                                      provisions of this Treaty and the Protocols;
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                (c) facilitate in accordance with this Treaty and the
Contracting Parties not party to the Protocol.                        Protocols the coordination of appropriate general
                                                                      measures to carry out the principles of the Charter;
6. (a) A Protocol may assign duties to the Charter
        Conference and functions to the Secretariat,             (d) consider and adopt programmes of work to be
        provided that no such assignment may be made by               carried out by the Secretariat;
        an amendment to a Protocol unless that
        amendment      is approved      by    the   Charter      (e) consider and approve the annual accounts             and
        Conference, whose approval shall not be subjea                budget of the Secreuriat;
        to any provisions of the Protocol which are auth-
        orized by subparagraph (b).
                                                                 (f)  consider and approve or adopt the terms of any
                                                                      headquarters      or  other    agreement,     including
    (b) A Protocol which provides for              decisions
                                                                      privileges and immunities considered necessary for
        thereunder to be taken by the Charter Conference
                                                                      the Charter Conference and the Secreuriat;
        may, subject to. subparagraph (a), provide with
        respea to sucfr-decisions :
                                                                  (g) encourage cooperative efforts aimed at facilitating
         (i) for voting rules other than those contained in           and promoting market-oriented           reforms     and
             Article 36;                                              modernization of energy sectors in those countries
                                                                      of central and eastern Europe and the former Union
                                                                      of Soviet Socialist Republics undergoing economic
        (ii) that only parties to the Protocol shall be
                                                                      transition;
             considered to be Contracting Parties for the
             purposes of Article 36 or eligible to vote
             under the rules provided for in the Protocol.        (h) authorize and approve the terms of reference for the
                                                                       negotiation of Protocols, and consider and adopt
                                                                       the texts thereof and of amendments thereto;
                          Article 34
                 Energy Charter Conference                        (i)  authorize the negotiation      of  declarations,   and
                                                                       approve their issuance;
 1. The Contracting Parties shall meet periodically in
 the Energy Charter Conference (referred to herein as the          0)  decide on accessions to this Treaty;
 ---pagebreak---   31. 12. 94                            OfficLI Journal of the European Communities                            N o L 380/45
  (k) authorize the negotiation of and consider and              4.      The Secretariat shall provide the Charter
       approve or adopt association agreements;                  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
  (1)  consider and adopt texts of amendments to this            and'any other functions assigned to it by the Charter
       Treaty;                                                   Conference.
  (m) consider and approve modifications of and technical        5.     The Secreuriat may enter into such administrative
       changes to the Annexes to this Treaty;                    and contractual arrangements as may be required for the
                                                                 effective discharge of its functions.
  (n) appoint the Secreury-General and u k e all decisions
        necessary for the esublishment and functioning of
       the Secreuriat including the structure, staff levels                                 Article 36
        and standard terms of employment of officials and
                                                                                              Voting
        employees.
                                                                 1.      Unanimity of the Contracting Parties present and
  4.     In the performance of its duties, the Charter           voting at the meeting of the Charter Conference where
  Conference, through the Secretariat, shall cooperate with      such matters fall to be decided shall be required for
  and make as full a use as possible, consistently with          decisions by the Charter Conference to:
& economy and efficiency, of the services and programmes
  of other institutions and organizations with established       (a) adopt amendments to this Treaty other than
  competence in matters related to the objectives of this              amendments to Articles 34 and 35 and Annex T;
  Treaty.
                                                                 (b) approve accessions to this Treaty pursuant to Article
                                                                       41 by States or Regional Economic Integration
  5.     The Charter Conference may esublish such
                                                                       Organizations which were not signatories to the
  subsidiary bodies as it considers appropriate for the                Charter as of 16 June 1995;
  performance of its duties.
                                                                 (c) authorize the negotiation of and approve or adopt
  6.     The Charter Conference shall consider and adopt               the text of association agreements;
  rules of procedure and financial rules.
                                                                 (d) approve modifications to Annexes EM, NI, G and B;
  7.     In 1999 and thereafter at intervals (of not more        (e) approve technical changes to the Annexes to this
  than five years) to be determined by the Charter                     Treaty; and
  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      (f) approve the Secretary-General's nominations          of
  and Protocols have been implemented. At the conclusion               panelists pursuant to Annex D, paragraph 7.
  of each review the Charter Conference may amend or
  abolish the functions specified in paragraph 3 and may         The Contracting Parties shall make every effort to reach
  discharge the Secretariat.                                     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.
                           Article 35*
                           Secretariat                           2.      Decisions on budgeury matters referred to in
                                                                 Article 34 (3) (e) shall be uken by a qualified majority of
   1.    In carrying out its duties, the Charter Conference      Contracting Parties whose assessed contributions as
  shall have a Secretariat which shall be composed of a          specified in Annex B represent, in combination, at least
  Secreury-General and such suff as are the minimum              three-fourths of the toul assessed contributions specified
  consistent with efficient performance.                         therein.
                                                                 3.      Decisions on matters referred to in Article 34 (7)
   2.    The Secretary-General shall be appointed by the         shall be taken by a three-fourths majority of the
   Charter Conference. The first such appointment shall be       Contracting Parties.
   for a maximum period of five years.
                                                                 4.      Except in cases specified in subparagraphs 1 (a) to
   3.    In the performance of its duties the Secreuriat shall    (f), paragraphs 2 and 3, and subject to paragraph 6,
   be responsible to and report to the Charter Conference.       decisions provided for in this Treaty shall be uken by a
 ---pagebreak--- N o L 380/46                           Official Journal of the European Communities                                31. 12. 94
three-fourths majority of the Contracting Parties present                                  Article 37
and voting at the meeting of the Charter Conference at
which such matters fall to be decided.                                                Funding principles
                                                                  1.    Each Contracting Party shall bear its own costs of
5.    For purposes of this Article, 'Contracting Parties         represenution at meetings of the Charter Conference
present and voting' means Contracting Parties present            and any subsidiary bodies.
and casting affirmative or negative votes, provided that
the Charter Conference may decide upon rules of
                                                                 2.     The cost of meetings of the Charter Conference
procedure to enable such decisions to be taken by                and any subsidiary bodies shall be regarded as a cost of
Contracting Parties by correspondence.                           the Secreuriat.
6.    Except as provided in paragraph 2,. no decision            3.     The costs of the Secretariat shall be met by the
referred to in this Article shall be valid unless it has the     Contracting Parties assessed according to their capacity
support of a simple majority of the Contracting Parties.         to pay, determined as specified in Annex B, the
                                                                 provisions of which may be modified in accordance with
7.    A Regional Economic Integration Organization               Article 36 (1) (d).
shall, when voting, have a number of votes equal to the
number of its Member Sûtes which are Contracting                 4.     A Protocol shall conuin provisions to assure that
Parties io this Treaty; provided that such an Organ-             any costs of the Secretariat arising from that Protocol
ization shall not exercise its right to vote if its Member       are borne by the parties thereto.
Sûtes exercise theirs, and vice versa.
                                                                 5.     The Charter Conference may in addition accept
8.    In the event of persistent arrears in a Contracting        voluntary contributions from one or more Contracting
Party's discharge of financial obligations pursuant to this      Parties or from other sources. Costs met from such
Treaty, the Charter Conference may suspend that                  contributions shall not be considered costs of the Secre-
Contracting Party's voting rights in whole or in part.           tariat for the purposes of paragraph 3.
                                                          PART VIII
                                                     FINAL PROVISIONS
                          Article 38                             deposited with the Depositary, declare that the Treaty
                                                                 shall be binding upon it with respect to all the territories
                          Signature                              for the international relations of which it is responsible,
                                                                 or to one or more of them. Such declaration shall u k e
This Treaty shall be open for signature at Lisbon from           effect at the time the Treaty enters into force for that
17 December 1994 to 16 June 1995 by the Sûtes and                Contracting Party.
Regional Economic Integration Organizations which
have signed the Charter.
                                                                 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
                        --Article 39
                                                                 in the declaration. In respect of such territory the Treaty
           Ratification, acceptance or approval                  shall enter into force on the 90th day following the
                                                                 receipt by the Deposiury of such declaration.
This Treaty shall be subject to ratification, accepunce or
approval by signatories. Instruments of ratification,            3.    Any declaration made under the two preceding
accepunce or approval shall be deposited with the                paragraphs may, in respea of any territory specified in
Depositary.                                                      such declaration, be withdrawn by a notification to the
                                                                 Depositary. The withdrawal shall, subject to the applica-
                                                                 bility of Article 47 (3), become effective upon the expiry
                          Article 40                             of one year after the date of receipt of such notification
                                                                 by the Depositary.
                 Application to territories
1.    Any Sute or Regional Economic Intégration                  4.     The definition of 'area' in Article 1 (10) shall be
Organization may at the time of signature, ratification,         construed having regard to any declaration deposited
acceptance, approval or accession, by a declaration              pursuant to this Article.
 ---pagebreak---    31. 12. 94                             Officiai Journal of the European Communities                              N o L 380/47
                             Article 41                             particular circumstances of the association, and in each
                                                                    case shall be set out in the association agreement.
                             Accession
   This Treaty shall be open for accession, from the date on                                  Article 44
   which the Treaty is closed for signature, by Sûtes and
   Regional Economic Integration Organizations which                                      Entry into force
   have signed the Charter, on terms to be approved by the
   Charter Conference. The instruments of accession shall
                                                                    1.    This Treaty shall enter into force on the 90th day
   be deposited with the Depositary.
                                                                    after the date of deposit of the 30th instrument of ratifi-
                                                                    cation, accepunce or approval thereof, or of accession
                                                                    thereto, by a Sute or Regional Economic Integration
                             Article 42                             Organization which is a signatory to the Charter as of
                                                                    16 June 1995.
                           Amendments
   1.     Any Contracting Party may propose amendments              2.    For each State or Regional Economic Integration
   to this Treaty.                                                  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
(I 2.     The text of any proposed amendment to this Treaty         enter into force on the 90th day after the date of deposit
                                                                    by such State or Regional Economic Integration Organ-
   shall be communicated to the Contracting Parties by the
   Secreuriat at least three months before the date on              ization of its instrument of ratification, accepunce,
   which it is proposed for adoption by the Charter                 approval or accession.
   Conference.
                                                                    3.    For the   purposes of paragraph 1, any instrument
   3.     Amendments to this Treaty, texts of which have            deposited by    a Regional Economic Integration Organ-
   been adopted by the Charter Conference, shall be                 ization shall   not be counted as additional to those
   communicated by the Secreuriat to the Depositary                 deposited by   Member States of such Organization.
   which shall submit them to all Contracting Parties for
   ratification, accepunce or approval.
                                                                                              Article 45
   4.     Instruments of ratification, accepunce or approval                           Provisional application
   of amendments to this Treaty shall be deposited with the
   Deposiury. Amendments shall enter into force between
                                                                    1.    Each signatory agrees to apply this Treaty
   Contracting Parties having ratified, accepted or approved
                                                                    provisionally pending its entry into force for such
   them on the 90th day after deposit with the Deposiury
                                                                    signatory in accordance with Article 44, to the extent
   of instruments of ratification, accepunce or approval by
                                                                    that such provisional application is not inconsistent with
   at least three-fourths of the Contracting Parties.
                                                                    its constitution, laws or regulations.
   Thereafter the amendments shall enter into force for any
Û  other Contraaing Party on the 90th day after that
   Contraaing Party deposits its instrument of ratification,        2. (a) Notwithsunding paragraph 1 any signatory may,
   accepunce or approval of the amendments.                                 when signing, deliver to the Depositary a
                                                                            declaration that it is not able to accept provisional
                                                                            application.   The      obligation    contained    in
                            Article 43                                      paragraph 1 shall not apply to a signatory making
                                                                            such a declaration. Any such signatory may nt any
                      Association agreements                                time withdraw that declaration by written notifi-
                                                                            cation to the Depositary.
   1. The Charter Conference may authorize the
   negotiation of association agreements with Sûtes or                  (b) Neither a signatory which makes a declaration in
   Regional Economic Integration Organizations, or with                     accordance with subparagraph (a) nor investors of
   international organizations, in order to pursue the                      that signatory may claim the benefits of
   objectives and principles of the Charter and the                         provisional application pursuant to paragraph 1.
   provisions of this Treaty or one or more Protocols.
                                                                        (c) Notwithsunding subparagraph (a), any signatory
   2.     The relationship established with and the rights                  making a declaration referred to in subparagraph
   enjoyed and obligations incurred by an associating State,                (a) shall apply Pan VII provisionally pending the
   Regional Economic Integration Organization, or inter-                    entry into force of the Treaty for such signatory
   national organization shall be appropriate to the                        in accordance with Article 44, to the extent that
 ---pagebreak--- N o L 380/48                          Official Journal of the European Communities                                 31. 12. 94
       such provisional application is not inconsistent                                  Article 46
       with its laws or regulations.
                                                                                        Reservations
                                                                No reservations may be made to this Treaty.
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
                                                                                         Article 47
       Contraaing Party to the Treaty. Termination of
       provisional application for any signatory shall                                  Withdrawal
       take effect upon the expiration of 60 days from
       the date on which such signatory's written notifi-
                                                                1.    At any time after five years from the date on which
       cation is received by the Deposiury.
                                                                this Treaty has entered into force for a Contraaing
                                                                Party, that Contraaing Party may give written notifi-
                                                                cation to the Deposiury of its withdrawal from the
   (b) In the event that a signatory terminates                 Treaty.
       provisional application pursuant to subparagraph
       (a), the obligation of the signatory pursuant to
                                                                2.    Any such withdrawal shall take effect upon the
       paragraph 1 to apply Parts III and V with respect
                                                                expiry of one year after the date of the receipt of the
       to any investments made in its area during such
                                                                notification by the Depositary, or on such later date as
       provisional application by investors of other
                                                                may be specified in the notification of withdrawal.
       signatories shall nevertheless remain in effect with
       respect to those investments for 20 years
       following the effective date of termination, except      3.    The provisions of this Treaty shall continue to
       as otherwise provided in subparagraph (c).               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
   (c) Subparagraph (b) shall not ipply to any signatory
                                                                Party's withdrawal from the Treaty takes effect for a
       listed in Annex PA. A signatory shall be removed
                                                                period of 20 years from such date.
       from the list in Annex PA effective upon delivery
       to the Deposiury of its request therefor.
                                                                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.
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                                     Article 48
paragraph 5 not later than 180 days after the opening                         Sutus of Annexes and Decisions
date for signature of the Treaty as specified in Article 38.
                                                                The Annexes to this Treaty and the Decisions set out in
                                                                Annex 2 to the F;nal Act of the European Energy
5.    The functions of the Secreuriat shall be carried out      Charter Conference signed at Lisbon on 17 December
on an interim basis by a provisional Secretariat until the       1994 are integral parts of the Treaty.
entry into force of this Treaty pursuant to Article 44 and
the establishment of a -Secreuriat.
                                                                                          Article 49
                                                                                         Deposiury
6.    The signatories shall, in i accordance with and
subject to the provisions of paragraph 1 or subparagraph
                                                                The Government of the Portuguese Republic shall be the
2 (c) as appropriate, contribute to the costs of the
                                                                Depositary of this Treaty.
provisional Secreuriat as if the signatories were
Contracting Parties pursuant to Article 37 (3).' Any
modifications made to Annex B by the signatories shall
                                                                                          Article 50
terminate upon the entry into force of this Treaty.
                                                                                       Authentic texts
7.    A State or Regional Economic Integration Organ-            Jn witness whereof the undersigned, being duly auth-
ization which, prior to this Treaty's entry into force,          orized to that effect, have signed this Treaty in English,
accedes to the Treaty in accordance with Article 41 .shall,      French, German, Italian, Russian and Spanish, of which
pending the Treaty's entry into force, have the rights and       every text is equally authentic, in one original, which will
assume the obligations of a signatory pursuant to this           be deposited with the Government of the Portuguese-
Article.                                                         Republic.
 ---pagebreak--- <\    31.12.94                          Official Journal of the European Communities                            N o L 380/49
               Done at Lisbon on the seventeenth day of December in the year one thousand nine bundred
               and ninety-four.
               Fait à Lisbonne, le dix-sept décembre mil neuf cent quatre-vingt-quatorze.
               Geschehen zu Lissabon am siebzehnten Dezember neunzehnhundertvierundneunzig.
               Fatto a Lisbona il diciassettesimo giorno del mese di dicembre dell'anno millenovecentonovanta-
               quattro.
               CoBepineHO B Jlncca6oue D ceuHonuaTUfi neHb neicaôpfl OXIHS THcn^a
               ûeBflTbcoT iieBniiocTo MeTBepToro roue.
               Hecho en Lisboa, el diecisiete de diciembre de mil novecientos noventa y cuatro.
               Udfxrdiget i Lissabon, den syttende december nittenhundrede og fireoghalvfems.
               Eytve crtTi Atactpôva, attç ÔéKa eTtxà AeKEjtpptoo tou éxooç x & 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.
#
 ---pagebreak--- N o L 380/50                          Official Journal of the European Communities 3 1 . 1 2 . 94
             Për Republikën e Shqipërisë
            ^lujinuinujOp 3uiûpumjbimupjUJÛ htuiiiup
            For Australia
           Fiir die Republik osterreich
 ---pagebreak---      3 1 . 1 2 . 94                          Official Journal of the European Communities                             N o L 380/51
                    A3ep6aflnaH aMHH<jaH
                                                   S> «r
                    Pour le royaume de Belgique
                    Voor het Koninkrijk België
                    Fur das Kônigreich Belgien
   &
                    Cette signature engage également la Communauté française de Belgique, la Communauté flamande,
                    la Communauté germanophone de Belgique, la Région wallonne, la Région flamande et la région
                    de Bruxelles-Capitale.
                    Deze handtekening bindt eveneens de Vlaamse Gemeenschap, de Franse Gemeenschap van België,
                    de Duitstalige Gemeenschap van België, het Waals Gewest en net Brussels Hoofdstedelijk Gewest.
                    Dièse Unterschrift bindet ebenso die Flâmische Gemeinschaft, die Franzôsische Gemeinschaft Belgi-
                    ens, die Deutschsprachige Gemeinschaft Belgiens, die Flâmische Region, die Wallonische F.egion
                    und die Region Briissel-Hauptstadt.
                    An i«fl Pscnyôjiixi 5enapyct
7/ m
                    3a PenyÔJiKKS 5-bJirapna
 ---pagebreak--- HOL380/52
                                 Official Journal of the European Communities
                                                                              31.12. 94
          For Canada
          Pour le Canada
          za Republiku Hrvatsku
         For the Republic of Cyprus
                                                     LOVJLCV^
        ZaCeskou Republiku
 ---pagebreak---   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
 ---pagebreak--- No L 380/54                          Official Journal of the European Communities 31.12.94
            Pour la République française
           Fur die Bundesrepublik Deutschland
            H a TT|V FAXTIVIKV| AtinoKpaxla
 ---pagebreak--- 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
 ---pagebreak--- 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
 ---pagebreak---      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
 ---pagebreak--- 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
                                                                    s
                                 -jA/'^-KèA^
 ---pagebreak--- It
     31.12.94                          Official Journal of the European Communities N o L 380/59
              Pela Republica Portuguesa
                                                                       v^'
              Pentru Romania
 • *                          1                    t
              3a POCCHP.CKVD $eflepaiiHD
              Za Slovensku republiku
                                                                           V
 ---pagebreak--- No L 380/60                        Official Journal of the European Communities  31. 12. 94
           Za Republiko Slovenijo
                                  7^9%lS                              c
           Por el Reino de Espana
           For Konungariket Sverige
                              X      I
                                                                          C/^AA_
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 ---pagebreak--- 31.12. 94                        Official Journal of the European Communities No L 380/61
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 ---pagebreak--- No L 380/62                         Official Journal of the European Communities 31.12. 94
           For the United Kingdom of Great Britain and Northern Ireland
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            For the United States of America
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 ---pagebreak---     31. 12. 94                             Official Journal of the European Communities                                No L 380/63
                                         ANNEXES T O T H E ENERGY CHARTER TREATY
                                                          TABLE OF       CONTENTS
                                                                                                                   Page
                1. Annex EM
                   Energy materials and products
                   (In accordance with Article 1 (4))                                                                65
                2. Annex NI
                   Non-applicable energy materials and products for definition of 'economic activity in the energy
                   sector'
                   (In accordance with Article 1 (5))                                                                66
                3. Annex TRM
                   Notification and phase-out (TRIMs)
3                  (In accordance with Article 5 (4))                                                                66
                4. Annex N
                   List of Contracung Parties requiring at least three separate areas to be involved in a transit
                   (In accordance with Article 7 (10) (a))                                                          67
                5. Annex VC
                   List of Contracting Parties which have made volunury binding commitments in respea of
                   Article 10 (3)
                   (In accordance with Article 10 (6))                                                              67
                6. Annex ID
                   List of Contracting Parties not allowing an investor to resubmit the same dispute to inter-
                   national arbitration at a later stage pursuant to Article 26
                   (In accordance with Article 26 (3) (b) (i))                                                      68
                7. Annex IA
                   List of Contracting Parties not allowing an investor or Contracting Party to submit a dispute
                   concerning the last sentence of Article 10 (1) to international arbiuation
• %
                   (In accordance with Articles 26 (3) (c) and 27 (2))                                              68
                8. Annex P
                   Special sub-national dispute procedure
                   (In accordance with Article 27 (3) (i))                                                          68
                9. Annex G
                   Exceptions and rules governing the application of the provisions of the GATT and Related
                   Instruments
                   (In accordance with Article 29 (2) (a))                                                          70
               10. Annex TFU
                   Provisions regarding trade agreements between States which were constituent parts of the
                   Former Union of Soviet Socialist Republics
                   (In accordance with Article 29 (2) (b))                                                          73
               11. Annex D
                   Interim provisions for trade dispute settlement
                   (In accordance with Article 29 (7))                                                              74
 ---pagebreak--- N o L 380/64                            Official Journal of the European Communities                                       31. 12. 94
                                                                                                                     p
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            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
 ---pagebreak---   f   31. 12. 94                            Official Journal of the European Communities                                     No L 380/65
                                                                 1. Annex EM
                                                ENERGY MATERIALS A N D PRODUCTS
                                                      (In accordance with Article 1 (4))
                 Nuclear energy
                 2612        Uranium or thorium ores and concentrates.
                 2612 10     Uranium ores and concentrates.
                 2612 20     Thorium "ores and concentrates.
                 2844        Radioactive chemical elements and radioactive isotopes (including the fissile or fertile chemical
                             elements and isotopes) and their compounds; mixtures and residues containing these products.
                 2844 10     Natural uranium and its compounds.
& •.*            2844 20     Uranium enriched in U235 and its compounds; plutonium and its compounds.
                 2844 30     Uranium depleted in U235 and its compounds; thorium and its compounds.
                 2844 40     Radioactive elements and isotopes and radioactive compounds other than 2844 10, 2844 20 or
                             2844 30.
                 2844 50     Spent (irradiated) fuel elements (cartridges) of nuclear reactors.
                 2845 10     Heavy water (deuterium oxide).
                 Coal, natural gas, petroleum and petroleum products, electrical energy
                 2701        Coal, briquettes, ovoids and similar solid fuels manufactured from coal.
                 2702        Lignite, whether or not agglomerated excluding jet.
                 2703        Peat (including peat litter), whether or not agglomerated.
                 2704        Coke and semi-coke of coal, of lignite or of peat, whether or not agglomerated; retort carbon.
                 2705        Coal gas, water gas, producer gas ' n d similar gases, other than petroleum gases and other
                             gaseous hydrocarbons.
  .1             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.
 ---pagebreak--- N o L 380/66                            Official Journal of the European Communities                                     3 1 . 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 T H E 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.
 ---pagebreak---     I
 Jj |i 31. 12. 94                               Official Journal of the European Communities                                    No L 380/67
                  2. In the case of trade-related investment measures applied under discretionary authority, each specific
                      application shall be notified. Information that would prejudice the legitimate commercial interests of
                      particular enterprises need not be disclosed.
                  3. Each Contraaing Parry shall eliminate all trade-related investment measures which are notified under. •
                      paragraph 1 within:
                      (a) two years from the date of entry into force of this Treaty if the Contracting Party is a party to the     '
                           GATT; or
                      (b) three years from the date of entry into force of this Treaty if the Contraaing Party is not a party to
                           the GATT.
                  4. During the applicable period referred to in paragraph 3 a Contracting Party shall not modify the terms
                      of any trade-related investment measure which it notifies pursuant to paragraph 1 from those prevailing
                      at the date of entry into force of this Treaty so as to increase the degree of inconsistency with the
                      provisions of Article 5 of this Treaty.
                  5. Notwithstanding the provisions of paragraph 4, a Contracting Party, in order not to disadvantage estab-
                      lished enterprises which are subject to a trade-related investment measure notified pursuant to
                      paragraph 1, may apply during the phase-out period the same trade-related investment measure to a
                      new investment where:
                      (a) the products of such investment are like products to those of the established enterprises; and
2>                    (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 O F C O N T R A C T I N G PARTIES REQUIRING A T LEAST T H R E E 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   C O N T R A C T I N G PARTIES W H I C H HAVE MADE VOLUNTARY                          BINDING
                                              COMMITMENTS IN RESPECT OF ARTICLE 10 (3)
                                                           (In accordance with Anicle 10 (6))
 ---pagebreak--- N o 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                                         13. Italy
              2. Azerbaijan                                        14. Japan
              3. Bulgaria                                          15. Kazakhsun
              4. Canada                                            16. Norway
              5. Croatia                                           17. Poland
              6. Cyprus                                            18. Portugal
              7. The Czech Republic                                19. Romania
              8. European Communities                             20. The Russian Federation
              9. Finland                                          21. Slovenia
            10. Greece                                            22. Spain
            11. Hungary                                           23. Sweden
            12. Ireland                                            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
 ---pagebreak---     3 1 . 12. 9 4                                Official Journal of t h e European Communities                                   N o L 380/69
                  PARTn
                   1. Where, in making an award, the tribunal finds that a .measure of a regional or local government or
                       authority of a Contracting Party (hereinafter referred to as the 'Responsible Party") «.not in conformity
                       with a provision of this Treaty, the Responsible Parry shall take such reasonable measures as may be
                       available to it to ensure observance of the Treaty in respect of the measure.
                  2. The Responsible Party shall, within 30 days from the date the award is made, provide to the Secreuriat
                      written notice of its intentions as to ensuring observance of the Treaty in respect of the measure. The
                      Secreuriat shall present the notification to the Charter Conference at the earliest practicable oppor-
                      tunity, and no later than the meeting of the Charter Conference following receipt of the notice. If it is
                      impracticable to ensure observance immediately, the Responsible Party shall have a reasonable period of
                      time in which to do so. The reasonable period of time shall be agreed by both parties to the dispute. In
                      the event that such agreement is not reached, the Responsible Party shall propose a reasonable period
                      for approval by the Charter Conference.
                  3. Where the Responsible Party fails, within the reasonable period of time, to ensure observance in respect
) ^                   of the measure, it shall at the request of the other Contracting Party party to the dispute (hereinafter
                      referred to as the 'Injured Party*) endeavour to agree with the Injured Party on appropriate compen-
                      sation as a mutually satisfactory resolution of the dispute.
                  4. If no satisfactory compensation has been agreed within 20 days of the request of the Injured Party, the
                      Injured Party may with the authorization of the Charter Conference suspend such of its obligations to
                      the Responsible Party under the Treaty as it considers equivalent to those denied by the measure in
                      question, until'such time as the Contracting Parties have reached agreement on a resolution of their
                      dispute or the non-conforming measure has been brought into conformity with the Treaty.
                  5. In considering what obligations to suspend, the Injured Party shall apply the following principles and
                      procedures:
                      (a) The Injured Parry should first seek to suspend obligations with respect to the same part of the
                           Treaty as that in which the tribunal has found a violation.
                      (b) If the Injured Parry considers'that it is not practicable or effective to suspend obligations with
                           respect to the same part, of the Treaty, it may seek to suspend obligations in other parts of the
                          Treaty. If the Injured Party decides to request authorization to suspend obligations under this
                           subparagraph, it shall sute the reasons therefor in its request to the Charter Conference for author-
                      On written request of the Responsible Party, delivered to the Injured Party and to the President of the
                      tribunal that rendered the award, the tribunal shall determine whether the level of obligations suspended
                      by the Injured Party is excessive, and if so, to what extent. If the tribunal cannot be reconstituted, such
                      determination shall be made by one or more arbitrators appointed by the Secreury-General. Determi-
                      nations pursuant to this paragraph shall be completed within 60 days of the request to the tribunal or
                      the appointment by the Secreury-General. Obligations shall not be suspended pending the determi-
                      nation, which shall be final and binding.
                  7. In suspending any obligations to a Responsible Party, an Injured Party shall make every effort not to
                      affect adversely the rights under the Treaty of any other Contracting Party.
 ---pagebreak--- N o 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.
 ---pagebreak---    31.12.94                            Official Journal o f 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
•à                     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)
 ---pagebreak--- 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.
 ---pagebreak---    3 1 . 12. 9 4                                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 W H I C H WERE
                     C O N S T I T U E N T PARTS O F T H E FORMER U N I O N O F 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
 ---pagebreak--- 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 recommen-
                dations with respea to such an agreement.
            5. An agreement described in Article 29 (2) (b) may in case of exceptional urgency be allowed to enter into
                force without the notification and consulution provided for in subparagraph 1 (b), paragraphs 2 and 3,
                provided that such notification ukes place and the opportunity for such consulution is afforded
                promptly. In such a case the parties to the agreement shall nevertheless notify its text in accordance with
                subparagraph 2 (a) prompdy upon its entry into force.
                Contracting Parties which are or become parties to an agreement described in Article 29 (2) (b)
                undertake to limit the non-conformities thereof with the provisions of the GATT and Related
                Instruments made applicable by Article 29 (2) (a) to those necessary to address the particular circum-
                sunces and to implement such an agreement so as least to deviate from those provisions. They shall
                make every effort to take remedial action in light of represenutions from the Interested Parties and of
                any recommendations of the Charter Conference.
                                                                11. Annex   D
                                  INTERIM PROVISIONS FOR T R A D E 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.
 ---pagebreak---    3 1 . 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 u k e instruction
                         from any government or other body. Each Contracting Party undertakes to respea these principles
                         and not to seek to influence panel members in the.,performance of their tasks. Panel members shall
                         be selected with a view to" ensuring their independence, and that a sufficient diversity of back-
                         grounds and breadth of experience are reflected in a panel.
                    (g) The Secreuriat shall prompdy notify all Contracting Parties that a panel has been constituted.
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.
 ---pagebreak--- 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 Sec-
                     reuriat. Contraaing Parties having objeaions to a panel report shall give written reasons for their
                     objections to the Secreuriat at least 10 days prior to the date on which the report is to be
                     considered for adoption by the Charter Conference, and the Secreuriat shall promptly provide them
                     to all Contracting Parties. The disputing Contracung Parties and Contracting Parties which notified
                     their interest in accordance with subparagraph 2 (b) shall have the right to participate fully in the
                     consideration of the panel report on that dispute by the Charter Conference, and their views shall
                     be fully recorded.
                (d) In order to ensure effective resolution of disputes to the benefit of all Contracting Parties, prompt
                     compliance with rulings and recommendations of a final panel report that has been adopted by the
                     Charter Conference is essential. A Contracting Party which is subject to a ruling or recommen-
                     dation of a final panel report that has been adopted by the Charter Conference shall inform the
                     Charter Conference of its intentions regarding compliance with such ruling or recommendation. In
                     the event that immediate compliance is impracticable, the Contracting Party concerned shall explain
                     its reasons for non-compliance to the Charter Conference and, in light of this explanation, shall
                     have a reasonable period of lime to effect compliance. The aim of dispute resolution is the modifi-
                     cation or removal of inconsistent measures.
 ---pagebreak--- 31. 12. 94                               Official Journal of the European Communities                                          No L 380/77
           5. (a) Where a Contracting Party has failed within a reasonable period of time to comply with a ruling or
                    recommendation of a final panel report that has been adopted by the Charter Conference, a
                    Contracting Party to the dispute injured by such non-compliance may deliver to the non-complying
                    Contraaing Party a written request that the v. non-complying Contracting Party enter into
                    negotiations with a view to agreeing upon mutually acceptable compensation. If so requested the
                    non-complying Contracting Party shall promptly enter into such negotiations.
               (b) If the non-complying Contraaing Party refuses to negotiate, or if the Contraaing Parties have not
                    reached agreement within 30 days after delivery of the request for negotiations, the injured
                    Contraaing Party may make a written request for authorization of the Charter Conference to
                    suspend obligations owed by it to the non-complying Contraaing Party pursuant to Article 5 or 29.
               (c) The Charter Conference may authorize the injured Contracting Party to suspend such of its obli-
                    gations to the non-complying Contracting Party, under provisions of Article 5 or 29 or under
                    provisions of the GATT or Related Instruments that apply pursuant to Article 29, as the injured
                    Contracting Party considers equivalent in the circumsunces.
               (d) The suspension of obligations shall be temporary and shall be applied only until such time as the
                    measure found to be inconsistent with Article 5 or 29 has been removed, or until a mutually satis-
                    factory solution is reached.
           6. (a) Before suspending such obligations the injured Contracting Pany shall inform the non-complying
                    Contracting Party of the nature and level of its proposed suspension. If the non-complying
                    Contracting Party delivers to the Secreury-General a written objection to the level of suspension of
                    obligations proposed by the injured Contracting Party, the objection shall be referred to arbitration
                    as provided below. The proposed suspension of obligations shall be stayed until the arbitration has
                    been completed and the determination of the arbitral panel has become final and binding in
                    accordance with subparagraph (e).
               (b) The Secretary-General shall establish an arbitral panel in accordance with subparagraphs 2 (d) to
                    (f), which if practicable shall be the same panel which made the ruling or recommendation referred
                    to in subparagraph 4 (d), to examine the level of obligations that the injured Contracting Pany
                    proposes to suspend. Unless the Chaner Conference decides otherwise the rules of procedure for
                    panel proceedings shall be adopted in accordance with subparagraph 3 (a).
               (c) The arbitral panel shall determine whether the level of obligations proposed to be suspended by the
                    injured Contracting Party is excessive in relation to the injury it experienced, and if so, to what
                    extent. It shall not review the nature of the obligations suspended, except in so far as this is insep-
                    arable from the determination of the level of suspended obligations.
                (d) The arbitral panel shall deliver its written determination to the injured and the non-complying
                     Contracting Parties and to the Secreuriat within 60 days of the esublishment of the panel or within
                    such other period as may be agreed by the injured and the non-complying Contracting Parties. The
                    Secreuriat shall present the determination to the Chaner Conference at the earliest practicable
                    opportunity, and no later than the meeting of the Chaner Conference following receipt of the
                    determination.
                (e) The determination of the arbitral panel shall become final and binding 30 days after the date of its
                     presentation to the Chaner Conference, and any level of suspension of benefits allowed thereby may
                     thereupon be put into effect by the injured Contracting Pany in such manner as that Contracting
                     Pany considers equivalent in the circumstances, unless prior to the expiration of the 30 days period
                     the Chaner Conference decides otherwise.
                (f) In suspending any obligations to a non-complying Contracting Party, an injured Contracting Party
                     shall make every effon not to affect adversely the trade of any other Contracting Pany.
            7. Each Contracting Pany may designate two individuals who shall, in the case of Contracting Panics
                which are also pany to the GATT, if they are willing and able 10 serve as panellists pursuant to this
                Annex, be panellists currently nominated for the purpose of GATT dispute panels. The Secretary-
                General may also designate, with the approval of the Chaner Conference, not more than 10 individuals,
                who are willing and able to serve as panellists for purposes of dispute resolution in accordance with
                paragraphs 2 to 4. The Charter Conference may in addition decide to designate for the same purposes
                up to 20 individuals, who serve on dispute seulement rosters of other international bodies, who are
                willing and able to serve as panellists. The names of all of the individuals so designated shall constitute
                the dispute settlement roster. Individuals shall be designated strictly on the basis of objectivity, reliability
 ---pagebreak--- 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 t o u l of all Contracting Parties'
                contributions is 100 %.
                                                             13. Annex PA
            LIST Op SIGNATORIES W H I C H DO N O T ACCEPT T H E 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
 ---pagebreak---     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
               Albania                                     Latvia
               Armenia                                     Lithuania
               Azerbaijan                                  Moldova
               Belarus                                     Poland
               Bulgaria                                    Romania
               Croatia                                     The Russian Federation
               The Czech Republic                          Slovakia
 /-
               Estonia                                     Slovenia
               Georgia                                     Tajikistan
               Hungary                                     Turkmenistan
               Kazakhsun                                   Ukraine
               Kyrgyzsun                                   Uzbekistan
                                List of provisions subjea to transitional arrangements
               Provision                                   Page
               Article 6 (2)                               80
               Article 6 (5)                               82
               Article 7 (4)                                84
               Article 9 (1)                                85
In             Article 10 (7)
               Article 14 (1) (d)
                                                            86
                                                            86
               Article 20 (3)                               87
               Article 22 (3)
 ---pagebreak--- 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 c o n d u a in economic
               activity in the energy sector.'
                     COUNTRY: ALBANIA                                                        C O U N T R Y : BELARUS
Sector                                                                   Sector
Ail energy sectors.                                                      All energy sectors.
Level of government                                                      Level of government
National.                                                                National.
Description                                                              Description
There is no law on protection of competition in Albania. The             Anti-monopoly legislation is at the stage of elaboration.
law N o 7746 of 28 July 1993 on hydrocarbons and the law No
7796 of 17 February 1994 on minerals do not include such                 Phase-out
provisions. There is no law on electricity which is in the suge of       1 January 2000.
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.                                              C O U N T R Y : GEORGIA
Phase-out                                                                Sector
                                                                         All energy sectors.
1 January 1998.
                                                                         Level of government
                     C O U N T R Y : ARMENIA
                                                                         National.
Sector
                                                                         Description
All energy seaors.
                                                                         Laws on demonopolization are at present    at the stage of elabor-
                                                                         ation in Georgia and that is why the       Sute has so far the
Level of government
                                                                         monopoly for practically all energy        sources and energy
National.                                                                resources, which restricts the possibility of competition in the
                                                                         energy and fuel complex.
Description
                                                                         Phase-out
At present a S u t e monopoly exists in Armenia in most energy
                                                                         1 January 1999.
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                            C O U N T R Y : KAZAKHSTAN
submitted to the Parliament in 1994. The laws are envisaged to
include provisions on anti-competitive behaviour, which would            Sector
be harmonized with the EC legislation on competition.
                                                                         All energy seaors.
Phase-out                   ^
                                                                         Level of government
31 December 1997.
                                                                         National.
                   C O U N T R Y : AZERBAIJAN                            Description
Sector                                                                   The law on development of competition and restriction of
                                                                         monopolistic activities (No 656 of 11 June 1991) has been
All energy seaors.                                                       adopted, but is of a general nature. It is necessary to develop
                                                                         the legislation funher, in particular by means of adopting
Level of government                                                      relevant amendments or adopting a new law.
National.                                                                Phase-out
                                                                         1 January 1998.
Description
The anti-monopoly legislation is at the stage of elaboration.                             COUNTRY: KYRGYZSTAN
Phase-out                                                                 Sector
1 January 2000.                                                          All energy sectors.
 ---pagebreak--- 31. 12. 94                               Official Journal of the European Communities                                  N o L 380/81
Level of government                                                         COUNTRY: T H E RUSSIAN FEDERATION
National.                                                          Sector
Description                                                        All energy seaors.
The law on anti-monopoly policies has already been adopted.        Level of government
The transitional period is needed to adapt provisions of this law
to the energy seaor which is now strialy regulated by the Sute.    The Federation.
Phase-out                                                          Description
1 July 2001.                                                       A comprehensive framework of anti-monopoly legislation has
                                                                   been created in the Russian Federation but other legal and
                                                                   organizational measures to prevent, limit or suppress monop-
                    COUNTRY: MOLDOVA                               olistic activities and unfair competition will have to be adopted
                                                                   and in particular in the energy sector.
Sector
                                                                   Phase-out
All energy sectors.
                                                                   1 July 2001.
Level of government
National.                                                                                COUNTRY: SLOVENIA
Description                                                        Sector
The law on restriction of monopolistic activities and devel-       All energy sectors.
opment of competition of 29 January 1992 provides an organiz-
ational and legal basis for the development of competition, and    Level of government
of measures to prevent, limit and restria monopolistic aaivities;
it is oriented towards implementing market economy conditions.     National.
This law, however, docs not provide for concrete measures of
anti-competitive condua in the energy seaor, nor does it cover     Description
completely the requirements of Article 6.
                                                                   Law on proteoion of competition adopted in 1993 and
In 1995 drafts of a law on competition and a Sute programme        published in Official Journal No 18/93 treats anti-competitive
of demonopolization of the economy will be submitted to the        condua generally. The existing law also provides for conditions
Parliament. The draft law on energy which will also be             for the esublishment of competition authorities. At present the
submitted to the Parliament in 1995 will cover issues on demon-    main competition authority is the Ofiice of Proteaion of
opolization and development of competition in the energy           Competition in the Ministry of Economic Relations and Devel-
seaor.                                                             opment. With regard to importance of energy sector a separate
                                                                   law in this respea is foreseen and thus more time for full
Phase-out                                                          compliance is needed.
1 January 1998.                                                    Phase-out
                                                                   1 January 1998.
                    COUNTRY: ROMANIA
Sector                            ^^                                                    COUNTRY: TAJIKISTAN
All energy sectors.                                                Sector
Level of government                                                All energy seaors.
National.                                                          Level of government
Description                                                        National.
The rules of competition are not yet implemented in Romania.       Description
The draft law on protection of competition has been submitted
to the Parliament and is scheduled to be adopted during 1994.      In 1993 Tajikistan passed the law on demonopolization and
                                                                   competition. However, due to the difficult economic situation in
The draft conuins provisions with respect to anti-competitive      Tajikistan, the jurisdiction of the law has been temporarily
behaviour, harmonized with the EC's law on competition.            suspended.
Phase-out                                                          Phase-out
31 December 1996.                                                  31 December 1997.
 ---pagebreak--- N o L 380/82                               Official Journal of the European Communities                                          31. 12. 94
                                                      :
                COUNTRY: TURKMENISTAN                                      Phase-out
Sector                                                                     1 July 2001. ^
All energy sectors.
                                                                                              COUNTRY: UZBEKISTAN
Level of government
                                                                           Sector
National.                                                                 All energy sectors.
Description                                                                Level of government
Under the Ruling of the President of Turkmenisun No 1532 of                National.
21 Oaobcr 1993 the Committee on Restricting Monopolistic
Aaivities has been eublishcd and is acting now, the function of            Description
which is to protect enterprises and other entities from monopoly           The law on restricting monopoly activities has been adopted in
condua and practices and to promote the formation of market                Uzbekisun and has been in force since July 1992. However, the
principles on the basis of the development of competition and              law (as is specified in Article 1 (3) does not extend to the
entrepreneurship.                                                          activities of enterprises in the energy sector.
Further development of legislation and regulations is needed
which would regulate anti-monopoly c o n d u a of enterprises in           Phase-out
the economic activity in the energy sector.                                1 July 2001.
                                                                Article 6 (5)
              'If a Contracting Party considers that any specified anti-competitive conduct carried out within the area of
              another Contracting Party is adversely affecting an important interest relevant to the purposes identified in
              this Article, the Contracting Party may notify the other Contracting Party and may request that its
              competition authorities initiate appropriate enforcement action. The notifying Contracting Party shall
              include in such notification sufficient information to permit the notified Contraaing Party to identify the
              anti-competitive conduct that is the subject of the notification and shall include an offer of such further
              information and cooperation as that Contraaing Party is able to provide. The notified Contracting Party
              or, as the case may be, the relevant competition authorities may consult with the competition authorities of
              the notifying Contraaing Party and shall accord full consideration to the request of the notifying
              Contracting Party in deciding whether or not to initiate enforcement action with respect to the alleged
              anti-competitive conduct identified in the notification. The notified Contracting Party shall inform the
               notifying Contraaing Party of its decision or the decision of the relevant competition authorities and may
              if it wishes inform the notifying Contracting Party of the grounds for the decision. If enforcement aaion is
               initiated, the notified Contracting Party shall advise the notifying Contraaing Party of its outcome and, to
              the extent possible, of any significant interim development.'
                      C O U N T R Y : ALBANIA                              Level of government
Sector                                                                     National.
All energy sectors.
                                                                           Description
Level of government                                                        Institutions to enforce the provisions of this paagraph have not
                                                                           been esublished in Armenia.
National.
                                                                           The laws on energy and proteaion of competition are planned
Description                                                                to include provisions to esublish such institutions.
In Albania there are no esublished institutions to enforce the             Phase-out
competition rules. Such institutions will be provided for in the
law on the protection of competition which is planned to be
                                                                           31 December 1997.
finalized in 1996.
Phase-out                                                                                     C O U N T R Y : AZERBAIJAN
1 January 1999.                                                            Sector
                                                                           All energy sectors.
                     C O U N T R Y : ARMENIA
 Sector                                                                     Level of government
All energy sectors.                                                        National.
 ---pagebreak--- 31. 12. 94                                Official Journal of the European Communities                                  No L 380/83
Description                                                          Level of government
Anti-monopoly authorities shall be        esublished  after the     National.
adoption of anti-monopoly legislation.
                                                                     Description
Phase-out
1 January 2000.                                                     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.
                     C O U N T R Y : BELARUS
                                                                    Phase-out
Sector
All energy sectors.                                                  1 July 2001.
Level of government
                                                                                        COUNTRY: MOLDOVA
National.
                                                                     Sector
Description
                                                                    All energy sectors.
Anti-monopoly authorities shall be        esublished  after the
adoption of anti-monopoly legislation.
                                                                    Level of government
Phase-out                                                           National.
1 January 2000.
                                                                    Description
                     C O U N T R Y : GEORGIA                        The Ministry of Economy is responsible for the control of
                                                                    competitive conduct in Moldova. Relevant amendments have
Sector
                                                                    been made to the law on breach of administrative rules, which
All energy sectors.                                                 envisage some penalties for violating rules of competition by
                                                                    monopoly enterprises.
Level of government
                                                                    The draft law on competition which is now at the stage of elab-
National.                                                           oration will have provisions on the enforcement of competition
                                                                    rules.
Description
                                                                    Phase-out
Laws on demonopolization are at present at the suge of elabor-
ation in Georgia and that is why there are no competition auth-     1 January 1998.
orities esublished yet.
Phase-out                                                                               COUNTRY: ROMANIA
1 January 1999.                                                     Sector
                                                                    All energy sectors.
                 C O U N T R Y : KAZAKHSTAN
Sector                                                              Level of government
All energy sectors.                                                 National.
Level of government                                                 Description
National.
                                                                    Institutions to enforce the provisions of this paragraph have not
                                                                    been esublished in Romania.
Description
An Anti-monopoly Committee has been esublished in                   The institutions charged with the enforcement of competition
Kazakhsun, but its activity needs improvement, both from            rules are provided for in the draft law on proteaion of
legislative and organizational points of view, in order to          competition which is scheduled to be adopted during 1994.
elaborate an effective mechanism handling the complaints on
anti-competitive conduct.                                           The draft also provides a period of nine months               for
                                                                    enforcement, suning with the date of its publication.
Phase-out                                                           According to the Europe Agreement establishing an association
1 January 1998.                                                     between Romania and the European Communities, Romania
                                                                    was granted a period of five years to implement competition
                                                                    rules.
                  C O U N T R Y : KYRGYZSTAN
Sector                                                              Phase-out
All energy sectors.                                                 1 January 1998.
 ---pagebreak--- N o L 380/84                               Official Journal of the European Communities                                         31. 12. 94
                   C O U N T R Y : TAJIKISTAN                                              C O U N T R Y : UZBEKISTAN
Sector                                                                  Sector           r-~
All energy seaors.                                                      All energy sectors.
Level of government                                                     Level of government
National.                                                               National.
                                                                        Description
Description
                                                                        The law on restricting monopoly activities has been adopted in
Tajikisun has adopted laws on demonopolization and                      Uzbekisun and has been in force since July 1992. However, the
competition, but institutions to enforce competition rules are in       law (as is specified in Article 1 (3) does not extend to the
the suge of development.                                                activities of the enterprise*, in the energy sector.
Phase-out                                                               Phase-out
31 December 1997.                                                       1 July 2001.
                                                              Article 7 (4)
               'In the event that transit of energy materials and products cannot be achieved on commercial terms by
               means of energy transport facilities the Contracting Parties shall not place obsucles in the way of new
               capacity being esublished, except as may be otherwise provided in applicable legislation which is consistent
               with paragraph 1.'
                   COUNTRY: AZERBAIJAN                                                       C O U N T R Y : BULGARIA
Sector                                                                  Sector
All energy seaors.                                                      All energy seaors.
Level of government                                                     Level of government
National.                                                               National.
                                                                        Description
Description
                                                                        Bulgaria has no laws regulating transit of energy materials and
It is necessary to adopt a set of laws on energy, including             products. An overall restruauring is ongoing in the energy
licensing procedures regulating transit. During a transition            seaor, including development of institutional framework, legis-
period it is envisaged to build and modernize power trans-              lation and regulation.
mission lines, as well as-•generating capacities with the aim of
bringing their technical level to the world requirements and
                                                                        Phase-out
adjusting to conditions of a market economy.
                                                                        The transitional period of seven years is necessary to bring the
Phase-out                                                               legislation concerning the transit of energy materials and
                                                                        products in full compliance with this provision.
31 December 1999.
                                                                         1 July 2001.
                     COUNTRY: BELARUS
                                                                                              COUNTRY: GEORGIA
Sector
                                                                         Sector
All energy sectors.
                                                                        All energy sectors.
Level of government                                                      Level of government
National.                                                               National.
Description                                                              Description
Laws on energy, land and other subjects are being worked out             It is necessary to prepare a set of laws on the matter. At present
at present, and until their final adoption, unceruinty remains as        there are subsuntially different conditions for the transport and
to the conditions for esublishing new transport capacities for           transit of various energy sources in Georgia (electric power,
energy carriers in the territory of Belarus.                             natural gas, oil products, coal).
 Phase-out                                                               Phase-out
31 December 1998.                                                        1 January 1999.
 ---pagebreak---    3 1 . 12. 94                                Official J o u r n a l of the European Communities                                   N o L 380/85
                        COUNTRY: HUNGARY                                                               COUNTRY: POLAND
   Sector
                                                                                  Sector
   Electricity industry.
                                                                                  AH energy sectors.
   Level of government
   National.                                                                      Level of government
   Description
                                                                                  National.
   According to the current legislation esublishment and operation
   of high-voluge transmission lines is a S u t e monopoly.
                                                                                  Description
   The creation of the new legal and regulatory framework for
   esublishment, operation and ownership of high-voluge trans-                    Polish law on energy, being in the final suge of coordination,
   mission lines is under preparation.                                            stipulates for creating new legal regulations similar to those
   The Ministry of Industry and Trade has already u k e n the                     applied by free market countries (licenses to generate, transmit,
   initiative to put forward a new A a on Electricity Power, that                 distribute and trade in energy carriers). Until it is adopted by
   will have its impact also on the Civil Code and on the A a on                  the Parliament a temporary suspension of obligations under this
   Concession. Compliance can be achieved after entering in force                 paragraph is required.
   of the new law on electricity and related regulatory decrees.
                                                                                  Phase-out
   Phase-out
O  31 December 1996.                                                              31 December 1995.
                                                                        Article 9 (1)
                   'The Contracting Parties acknowledge the importance of open capital markets in encouraging the flow of
                   capital to finance trade in energy materials and products and for the making of and assisting with regard to
                   investments in economic.aaivity in the energy sector in the areas of other Contracting Parties, particularly
                   those with economies in transition. Each Contracting Party shall accordingly endeavour to promote
                   conditions for access to its capiul market by companies and nationals of other Contracting Parties, for the
                   purpose of financing trade in energy materials and products and for the purpose of investment in economic
                   activity in the energy seaor in the areas of those other Contracting Parties, on a basis no less favourable
                   than that which it accords in like circumsunces to its own companies and nationals or companies and
                   nationals of any other Contraaing Parry or any third Sute, whichever is the most favourable.'
                       C O U N T R Y : AZERBAIJAN                                 Phase-out
    Sector                                                                         1 January 2000.
   All energy sectors.
                                                                                                       COUNTRY: G E O R G I A
    Level of government
(I  National.
                                                                                   Sector
                                                                                   All energy seaors.
    Description
    Relevant legislation is at the suge.of elaboration.                            Level of government
    Phase-out                                                                      National.
    1 January 2000.
                                                                                   Description
                          C O U N T R Y : BELARUS                                  Relevant legislation is at the suge of preparation.
    Sector
                                                                                   Phase-out
    All energy sectors.
                                                                                    1 January 1997.
    Level of government
    National.                                                                                        COUNTRY: KAZAKHSTAN
     Description                                                                    Sector
    Relevant legislation is at the stage of elaboration.                            All energy sectors.
 ---pagebreak--- N o L 380/86                               Official Journal of the European Communities                                      3 1 . 12. 94
Level of government                                                                        C O U N T R Y : KYRGYZSTAN
                                                                         Sector           ^
National.
                                                                         All energy seaors.
Description
                                                                         Level of government
The bill on foreign investments is at the stage of authorization         National.
approval with the aim to adopt it by the Parliament in autumn
1994.                                                                    Description
                                                                         Relevant legislation is currendy under preparation.
Phase-out
                                                                         Phase-out
1 July 2001.                                                              1 July 2001.
                                                    Article 10 (7) — Specific measures
               'Each Contracting Party shall accord to investments in its area of investors of another Contraaing Party,
               and their related activities including management, maintenance, use, enjoyment or disposal, treatment no
               less favourable than that which it accords to investments of its own investors or of the investors of any
               other Contracting Party or any third Sute and their related aoivities including management, maintenance,
               use, enjoyment or disposal, whichever is the most favourable.'
                    C O U N T R Y : BULGARIA                             A foreign person may aquire property rights over buildings, but
                                                                         without property rights over the land.
Sector
                                                                         Foreign persons or companies with foreign controlling partici-
All energy sectors.                                                      pation must obuin a permit before performing the following
                                                                         activities :
Level of government
                                                                         — exploration, development and extraction of natural resources
National.                                                                     from the territorial sea, continenul shelf or exclusive
                                                                              economic zone,
Description
                                                                         — acquisition of real esute in geographic regions designated by
Foreign persons may not acquire property rights over land. A                  the Council of Ministers,
company with more than 50 % of foreign person's share may
                                                                         — the permits are issued by the Council of Ministers or by a
not acquire property right over agricultural land.
                                                                              body authorized by the Council of Ministers.
Foreigners and foreign legal persons may not aquire property
rights over land except by way of inheritance according to the            Phase-out
law. In this case they have to make it over.                              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;'
                     C O U N T R Y : BULGARIA                             Description
                                                                          Foreign nationals employed by companies with more than 50 %
 Sector                                                                   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,
All energy seaors.                                                        may purchase foreign currency not exeeding 70 % of their
                                                                          salary, including social security payments.
 Level of government
                                                                          Phase-out
 National.                                                                 1 July 2001.
 ---pagebreak--- f
  31. 12. 94                                Official Journal of the European Communities                                       N o L 380/87
                      COUNTRY: HUNGARY                                    their income up to 50 % of their aftertax earnings derived from
                                                                          the company of their employment through the bank of their
  Sector
                                                                          company.
  All energy sectors.
                                                                          Phasè-out
  Level of government                                                     The phase out of this particular restriction depends on the
  National.                                                               progress Hungary is able to make in the implemenution of the
                                                                          foreign exchange liberalization programme whose final target is
  Description                                                             the full convertibility of die Forint. This restriction does not
  According to the A a on Investments of Foreigners in Hungary,           create barriers to foreign investors. Phase-out is based on stipu-
  Article 33, foreign top managers, executive managers, members           lations of Article 32.
  of the Supervisory Board and foreign employees may transfer              1 July 2001.
                                                                Article 20 (3)
                 'Each Contraaing Party shall designate one or more enquiry points to which requests for information
                 about the abovemcntioncd laws, regulations, judicial decisions and administrative rulings may be addressed
                 and shall communicate promptly such designation to the Secreuriat which shall make it available on
                 request.'
                       C O U N T R Y : ARMENIA                             Level of government
  Sector                                                                   National.
  All energy sectors.                                                      Description
  Level of government                                                      Official enquiry offices which could give information on laws,
                                                                           regulations, judicial decisions and administrative rulings do not
  National.
                                                                          exist yet in Belarus. As far as the judicial decisions and adminis-
                                                                           trative rulings are concerned there is no praaice of their
  Description                                                              publishing.
  In Armenia there are no official enquiry points yet to which
  requests for information about the relevant laws and other regu-         Phase-out
  lations could be addressed. There is no information centre
                                                                           31 December 1998.
  either. There is a plan to esublish such a centre in 1994 to 1995.
  Technical assisunce is required.
                                                                                             COUNTRY: KAZAKHSTAN
  Phase-out
                                                                           Sector
  31 December 1996.
                                                                           All energy seaors.
                     C O U N T R Y : AZERBAIJAN                            Level of government
  Sector                                                                   National.
  All energy seaors.                                                       Description
  Level of government                                                      The process of esublishing enquiry points has begun. As far as
                                                                           the judicial decisions and administrative rulings arc concerned
  National.                                                                they are not published in Kazakhsun (except for some decisions
                                                                           made by the Supreme Court), because they are not considered
   Description                                                             to be sources of law. To change the existing practice will
                                                                           require a long transitional period.
  There are no official enquiry points so far in Azerbaijan to
  which requests for information about relevant laws and regu-              Phase-out
  lations could be addressed. At present such information is
  concentrated in various organizations.                                    1 July 2001.
   Phase-out
                                                                                                COUNTRY: MOLDOVA
   31 December 1997.
                                                                            Sector
                       C O U N T R Y : BELARUS                              All energy sectors.
   Sector                                                                   Level of government
   All energy sectors.                                                      National.
 ---pagebreak--- N o L 380/88                               Official Journal of the European Communities                                         3 1 . 12. 94
Description                                                                Phase-out
It is necessary to esublish enquiry points.                                1 January 1998^-
Phase-out
31 December 1995.                                                                             COUNTRY: TAJIKISTAN
                                                                           Sector
         C O U N T R Y : T H E RUSSIAN FEDERATION                          All energy seaors.
Sector
                                                                           Level of government
All energy sectors.
                                                                           National.
Level of government
The Federation and the Republics constituting Federation.                  Description
                                                                           There are no enquiry points yet in Tajikisun to which requests
Description
                                                                           for information about relevant laws and other regulations could
N o official enquiry points exist in the Russian Federation as of          be addressed. It is only a question of having available funding.
now to which requests for information about relevant laws and
other regulation acts could be addressed. As far as the judicial           Phase-out
decisions and administrative rulings are concerned they are not
considered to be sources of law.                                           31 December 1997.
Phase-out
                                                                                               COUNTRY: UKRAINE
31 December 2000.
                                                                           Sector
                     C O U N T R Y : SLOVENIA                              All energy sectors.
Sector                                                                     Level of government    -
All energy sectors.                                                        National.
Level of government
                                                                           Description
National.
                                                                           Improvement of the present transparency of laws up to the level
Description                                                                of international practice is required. Ukraine will have to
                                                                           establish enquiry points providing information about laws, regu-
In Slovenia there are no official enquiry points yet to which
                                                                           lations, judicial decisions and administrative rulings and
requests for information about relevant laws and other regu-
                                                                           sundards of general application.
latory acts could be addressed. At present such information is
available in various ministries. The law on foreign investments            Phase-out
which is under preparation foresees establishment of such an
enquiry point.                                                             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: T H E 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.
 ---pagebreak---      31. 12. 94                                Official Journal of the European Communities                              N o L 380/89
                                                                     ANNEX 2
                               DECISIONS WITH RESPECT TO THE ENERGY CHARTER TREATY
     The European Energy Charter Conference has adopted                          (c) the Contracting Party ensures that investments
     the following Decisions:                                                         in its area of the investors of all other
                                                                                      Contracting Parties are accorded, with respect
                                                                                      to transfers, treatment no less favourable than
     1. With respect to the Treaty as a whole                                         that which it accords to investments of
                                                                                      investors of any other Contraaing Party or of
         In the event of a conflict between the treaty                                any third State, whichever is the most
         concerning Spitsbergen of 9 February 1920 (the                               favourable.
         Svalbard Treaty) and the Energy Charter Treaty, the
         treaty concerning Spitsbergen shall prevail to the
                                                                              2. This Decision shall be subject to examination by
         extent of the conflict, without prejudice to the
                                                                                 the Charter Conference five years after entry into
         positions of the Contracting Parties in respect of the                  force of the Treaty, but not later than the date
         Svalbard Treaty. In the event of such conflict or a                     envisaged in Article 32 (3).
         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.                                              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
     2. With respect to Article 10 (7)                                           has notified the provisional Secretariat in writing
                                                                                 no later than 1 July 1995 that it elects to be eligible
         The Russian Federation may require that companies                       to apply restrictions in accordance with this
         with foreign participation obtain legislative approval                  Decision.
         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               4. For the avoidance of doubt, nothing in this
         which discriminates among investments of investors of                   Decision shall derogate, as concerns Article 16,
         other Contracting Parties.                                              from the rights hereunder of a Contracting Party,
                                                                                 its investors or their investments, or from the obli-
                                                                                 gations of a Contracting Party.
     3. With respect to Article 14 (*)
                                                                              5. For the purposes of this Decision:
          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                 'current transactions'      are current      payments
              restrictions on movement of capital by its own                     connected with the movement of goods, services or
              investors, provided that:                                          persons that are made in accordance with normal
                                                                                 international practice, and do not include
                                                                                 arrangements which materially constitute a combi-
              (a) such restrictions sha_ll '-not impair the rights               nation of a current payment and a capital trans-
                   granted pursuant to ÂVticle 14 (1) to investors               action, such as deferrals of payments and advances
                   of other Contracting Parties with respect to                  which is meant to circumvent respective legislation
                   their investments;                                            of the Limiting Party in the field.
              (b) such restrictions do not affect current trans-           4. With respect to Article 14 (2)
                   attiorts; and
                                                                              Without prejudice to the requirements of Article 14
                                                                              and its other international obligations, Romania shall
                                                                              endeavour during the transition to full convertibility
      (*) This Decision has been drafted in the undersunding that             of its national currency to take pppropriate steps to
           Contracting Parties which intend to avail themselves of it         improve the efficiency of its procedures for the
           and which also have entered into Partnership and Coop-
           eration Agreements with the European Communities and               transfers of investment returns and shall in any case
           their Member States conuining an article disapplying those         guarantee such transfers in a freely convertible
           Agreements in favour of the Treaty, will exchange letters of       currency without restriction or a delay exceeding six
           undersunding which have the legal effect of making Article         months. Romania shall ensure that investments in its
           16 of the Treaty applicable between them in relation to this
           Decision. The exchange of letters shall be completed in            area of the investors of all other Contracting Parties
           good time prior to signature.                                      are accorded, with respect to transfers, treatment no
 ---pagebreak--- No L 380/90                             Official Journal of the European Communities                                  31. 12. 94
   less favourable than that which it accords to                     under such EIA, free-trade area or customs union,
   investments of investors of any other Contracting                 provided that the investment:
   Party or of any third State, whichever is the most
   favourable.                                                       (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
5. With respect to Articles 24 (4) (a) and 25
   An investment of an investor referred to in Article               (b) in case it only has its registered office in that area,
    1 (7) (a) (ii), of a Contracting Party which is not party            has an effective and continuous link with the
   to ah EIA or ,a member of a free-trade area or a                      economy of one of the parties to that EIA or
   customs union, shall be entitled to treatment accorded                member of that free-trade area or customs union.
 ---pagebreak---                                Official Journal of the European Communities                                   N o L 380/91
                                                      ANNEX     3
                                    ENERGY CHARTER PROTOCOL
                           o n energy efficiency and related environmental aspects
                                                     PREAMBLE
  T H E C O N T R A C T I N G 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
I related environmental protection,
  Having regard also to the Energy Charter Treaty, opened for signature from 17 December 1994 to 16 June
  1995,
  Mindful of the work undertaken by international organizations and fora in the field of energy efficiency
  and environmenul aspects of the energy cycle;
  Aware of the improvements in supply security, and of the significant economic and environmenul gains,
  which result from the implementation of cost-effective energy efficiency measures; and aware of their
  importance for restructuring economies and improving living standards;
  Recognizing that improvements in energy efficiency reduce negative environmenul consequences of the
  energy cycle including global warming and acidification;
  Convinced that energy prices should reflect as far as possible a competitive market, ensuring market-
  oriented price formation, including fuller reflection of environmental costs and benefits, and recognizing
  that such price formation is viul to progress in energy efficiency and associated environmenul protection;
  Appreciating the viul role of the private s e a o r 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:
 ---pagebreak--- N o L 380/92                               Official Journal of the European Communities                                 31.12.94
                                PARTI                                    including the authority to take decisions binding on
                                                                         them in respea of those matters.
                           INTRODUCTION
                                                                     4. 'Energy cycle' means the entire energy chain,
                                                                         including activities related to prospecting for, explo-
                               Article 1                                 ration, production, conversion, storage, transport,
                                                                         distribution and consumption of the various forms of
               Scope and objectives of the Protocol
                                                                         energy, and the treatment and disposal of wastes, as
                                                                         well as the decommissioning, cessation or closure of
1.     This Protocol defines policy principles for the                   these activities, minimizing harmful environmental
promotion of energy efficiency as a considerable source                  impacts.
of energy and for consequently reducing adverse
environmental impacts of energy systems. It furthermore
provides guidance on the development of energy ef-                   5. 'Cost-effectiveness' means to achieve a defined
ficiency programmes, indicates areas of cooperation and                  objective at the lowest cost or to achieve the greatest
provides a framework for the development of coop-                        benefit at a given cost.
erative and coordinated action. Such action.may include
the prospecting for, exploration, production, conversion,
                                                                     6. 'Improving energy efficiency' means acting to
storage, transport, distribution, and consumption of
                                                                         maintain the same unit of output (of a good or
energy, and may relate to any economic sector.
                                                                         service) without reducing the quality or performance      (
                                                                         of the output, while reducing the amount of energy
2.      The objectives of this Protocol are:                             required to produce that output.
(a) the promotion of energy efficiency policies consistent           7. 'Environmental impact' means any effect caused by a
     with sustainable development;                                       given activity on the environment, including human
                                                                         health and safety, flora, fauna, soil, air, water,
                                                                         climate, landscape and historical monuments or other
(b) the creation of framework conditions which induce
                                                                         physical structures "or the interactions among these
     producers and consumers to use energy as econ-
                                                                         factors; it also includes effects on cultural heritage or
     omically, efficiently and environmentally soundly as
                                                                         socio-economic conditions resulting from alterations
     possible, particularly through the organization of
                                                                         to those factors.
     efficient energy markets and a fuller reflection of
     environmental costs and benefits; and
(c) the fostering of cooperation in the field of energy
     efficiency.                                                                                PART II
                                                                                          POLICY PRINCIPLES
                                Article 2
                               Definitions
                                                                                                Article 3
As used in this Protocol:                                                                    Basic principles
    'Charter' means the European Energy Charter                       Contracting Parties shall be guided by the following
    adopted in the Concluding Document of the Hague                  principles:
    Conference on the European Energy Charter signed
    a t T h e ' H a g u e on 17 December 1991; signature of the       1. Contracting Parties shall cooperate and, as appro-
    Concluding Document is considered to be signature                     priate, assist each other in developing and
    of the Charter.                                                       implementing energy efficiency policies, laws and
                                                                          regulations.
 2. 'Contracting Party' means a State or Regional
    Economic Integration Organization which has                       2. Contracting Parties shall establish energy efficiency
    consented to be bound by this Protocol and for which                  policies and appropriate legal and regulator)'
    the Protocol is in force.                                             frameworks which promote, inter alia:
 3. 'Regional Economic Integration Organization' means                    (a) efficient functioning of market mechanisms
    an organization constituted by States to which they                       including market-oriented price formation and a
    have transferred competence over certain matters a                        fuller reflection of environmental costs and
    number of which are governed by this Protocol,                            benefits;
 ---pagebreak---      31. 12. 94                                   Official Journal of the European Communities                              N o L 380/93
         (b) reduction of barriers to energy efficiency, thus                                          Article 5
               stimulating investments ;
                                                                                              Strategies and policy aims
         (c) mechanisms         for     financing  energy      efficiency    Contracting Parties shall formulate strategies and policy
               initiatives;                                                  aims for improving energy efficiency and thereby
                                                                             reducing environmental impacts of the energy cycle as
                                                                             appropriate in relation to their own specific energy
         (d) education and awareness;
                                                                             conditions. These strategies and policy aims shall be
                                                                            transparent to all interested parties.
         (e) dissemination and transfer of technologies;
                                                                                                       Article 6
         (f) transparency of legal and regulatory frameworks.
                                                                                          Financing and financial incentives
     3. Contracting Parties shall strive to achieve the full                 1.    Contracting Parties shall encourage the implemen-
         benefit of energy efficiency throughout the energy                 tation of new approaches and methods for financing
         cycle. To this end they shall, to the best of their                energy efficiency and energy related environmenul
         competence, formulate and implement energy effi-                   protection      investments,     such    as  joint   venture
         ciency policies and cooperative or coordinated actions             arrangements between energy users and external
         based on cost-effectiveness and economic efficiency,               investors (hereinafter referred to as 'Third Party
         taking due account of environmental aspects.                       Financing').
     4. Energy        efficiency     policies shall include both            2.     Contracting Parties shall endeavour to take
         short-term measures for the adjustment of previous                 advantage of and promote access to private capital
         practices and long-term measures to improve energy                 markets and existing international financing institutions
         efficiency throughout the energy cycle.                            in order to facilitate investments in improving energy
                                                                            efficiency and in environmental protection related to
                                                                            energy efficiency.
     5. When cooperating to achieve the objectives of this
         Protocol, Contracting Parties shall take into account              3.     Contracting Parties may, subject to the provisions
         the differences in adverse effects and abatement costs             of the Energy Charter Treaty and to their other inter-
         between Contracting Parties.                                       national legal obligations, provide fiscal or financial
                                                                            incentives to energy users in order to facilitate market
                                                                            penetration of energy efficiency technologies, products
     6. Contracting Parties recognize the vital role of the                 and services. They shall strive to do so in a manner that
         private sector. They shall encourage action by energy              both ensures transparency and minimizes the distortion
         utilities, responsible authorities and              specialized    of international markets.
         agencies, and close cooperation between industry and
i(j|     administrations.
                                                                                                       Article 7
     7. Cooperative or coordinated action shall take into                            Promotion of energy efficient technology
         account relevant principles^ adopted in international
         agreements, aimed at protection and improvement of                 1.     Consistent with the provisions of the Energy
         the environment, to which Contraaing Parties are                   Charter Treaty, Contraaing Parties shall encourage
         parties.                                                           commercial trade and cooperation in energy efficient
                                                                            and environmentally sound technologies, energy related
                                                                            services and management practices.
     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.             2.     Contracting Parties shall promote the use of these
                                                                            technologies,     services   and      management    practices
                                                                            throughout the energy cycle.
                                    Article 4
               Division of responsibility and coordination                                             Article 8
                                                                                                Domestic programmes
     Each Contracting Party shall strive to ensure that energy
     efficiency policies are coordinated among all of its                   1.     In order to achieve the policy aims formulated
     responsible authorities.                                               according to Article 5, each Contracting Party shall
 ---pagebreak--- N o L 380/94                            Official Journal of the European Communities                             31. 12. 94
develop, implement and regularly update energy effi-                                        PART ffl
ciency programmes best suited to its circumstances.
                                                                              INTERNATIONAL COOPERATION
2.     These programmes may include activities such as
the:
                                                                                            Article 9
(a) development of long-term energy demand                  and                      Areas of cooperation
     supply scenarios to guide decision-making;
                                                                  The cooperation between Contracting Parties may u k e
                                                                  any appropriate form. Areas of possible cooperation are
(b) assessment of the energy, environmenul                  and
                                                                  listed in the Annex.
     economic impact of actions u k e n ;
(c) definition of sundards designed to improve the effi-
     ciency of energy using equipment, and efforts to
     harmonize these internationally to avoid trade
     distortions;                                                                           PART IV
                                                                     ADMINISTRATIVE AND LEGAL ARRANGEMENTS
(d) development and encouragement of private initiative
     and industrial cooperation, including joint ventures;
                                                                                           Article 10
(e) promotion of the use of the most energy efficient
     technologies that are economically viable and en-                          Role of the Charter Conference
     vironmcnully sound;
                                                                  1.    All decisions made by the Charter Conference in
(f) encouragement      of     innovative    approaches       for  accordance with this Protocol shall be made by only
     investments in energy efficiency improvements, such          those Contracting Parties to the Energy Charter Treaty
     as Third Party Financing and co-financing;                   who are Contraaing Parties to this Protocol.
(g) development of appropriate energy balances and                2.    The Charter Conference shall endeavour to adopt,
     daubases, for example with d a u on energy demand            within 180 days after the entry into force of this
     at a sufficiently deuiled level and on technologies          Protocol, procedures for keeping under review and
     for improving energy efficiency;                             faciliuting the implemenution of its provisions,
                                                                  including reporting requirements, as well as for ident-
                                                                  ifying areas of cooperation in accordance with Article 9.
(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                             Article 11
     programmes and technologies, and assist consumers                             Secretariat and financing
     and enterprises;
                                                                  1.    The Secretariat esublished pursuant to Article 35
(i) support and promotion of cogeneration and of                  of the Energy Charter Treaty shall provide the Charter
     measures to increase the efficiency of district heat         Conference with all necessary assistance for the
     production and distribution systems to buildings and         performance of its duties under this Protocol and
     industry;                                                    provide such other services in support of the Protocol as
                                                                  may be required from time to time, subject to approval
                                                                  by the Charter Conference.
(j) esublishment of specialized energy efficiency bodies
     at appropriate levels, that are sufficiently funded and
     suffed to develop and implement policies.                    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
3.     In    implementing       their    energy      efficiency   their capacity to pay, determined according to the
programmes, Contracting Parties shall ensure that                 formula specified in Annex B to the Energy Charter
adequate institutional and legal infrastructures exist.           Treaty.
 ---pagebreak--- 31. 12. 94                            Official Journal of the European Communities                          N o L 380/95
                         Article 12                             Charter Treaty, the provisions of the Energy Charter
                                                                Treaty shall, to the extent of the inconsistency, prevail.
                           Voting
1.    Unanimity of Contracting Parties present and              2.    Article 10(1) and Article 12(1) to (3) shall not
voting at the meeting of the Charter Conference where           apply to votes in the Charter Conference on amendments
such matters fall to be decided shall be required for           to this Protocol which assign duties or functions to the
decisions to:                                                   Charter Conference or the Secreuriat, the establishment
                                                                of which is provided for in the Energy Charter Treaty.
(a) adopt amendments to this Protocol; and
(b) approve accessions to this Protocol pursuant to
    Article 16.                                                                            PART V
                                                                                    FINAL PROVISIONS
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                                              Article 14
non-budgetary matters shall be taken by a three-fourths
                                                                                          Signature
majority of Contracting Parties pre ent and voting at the
meeting of the Charter Conference at which such
matters fall to be decided.                                     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
Decisions on budgetary matters shall be taken by a              representatives have signed the Charter and the Energy
qualified majority of Contracting Parties whose assessed        Charter Treaty.
contributions pursuant to Article 11 (2) represent, in
combination, at least three-fourths of the total assessed
contributions.                                                                            Article 15
                                                                            Ratification, accepunce or approval
2.    For purposes of this Article, 'Contracting Parties
present and voting' means Contraaing Parties to this
                                                                This Protocol shall be subjea to ratification, accepunce
Protocol present and casting affirmative or negative
                                                                or approval by signatories. Instruments of ratification,
votes, provided that the Charter Conference may decide
                                                                accepunce or approval shall be deposited with the
upon rules of procedure to enable such decisions to be
                                                                Depositary.
uken by Contracting Parties by correspondence.
3.    Except as provided in paragraph 1 in relation to                                    Article 16
budgetary matters, no decision referred to in this Article
                                                                                          Accession
shall be valid unless it has the support of a simple
majority of Contracting Parties.
                                                                This Protocol shall be open for accession, from the date
                                                                on which the Protocol is closed for signature, by Sûtes
4.    A Regional Economic Integration Organization              and Regional Economic Integration Organizations which
shall, when voting, have a number of votes equal to the         have signed the Charter and are Contracting Parties to
number of its Member Sûtes" which are Contracting               the Energy Charter Treaty, on terms to be approved by
Parties to this Protocol; provided that such an Organ-          the Charter Conference. The instruments of accession
ization shall not exercise its right to vote if its Member      shall be deposited with the Deposiury.
States exercise theirs, and vice versa.
5.     In the event of persistent arrears in a Contracting                                Article 17
Party's discharge of financial obligations under this                                    Amendments
 Protocol, the Charter Conference may suspend that
 Contracting Party's voting rights in whole or in part.
                                                                 1.   Any Contracting Party may propose amendments
                                                                 to this Protocol.
                          Article 13
                                                                 2.    The text of any proposed amendment to this
           Relation to the Energy Charter Treaty                 Protocol shall be communicated to Contracting Parties
                                                                 by the Secretariat at least three months before the date
 1.    In the event of inconsistency between the provisions      on which it is proposed for adoption by the Charter
 of this Protocol and the provisions of the Energy               Conference.
 ---pagebreak--- N o L 380/96                           Official Journal of the European Communities                              31. 12. 94^
3.    Amendments to this Protocol, texts of which have                                  Article 19
been adopted by the Charter Conference, shall be
communicated by the Secreuriat to the Deposiury                                 ^      Reservations
which shall submit them to all Contracting Parties for
ratification, accepunce or approval.                             No reservations may be made to this Protocol.
4.     Instruments of ratification, accepunce or approval
of amendments to this Protocol shall be deposited with                                  Article 20
the Depositary. Amendments shall enter into force
between Contracting Parties having ratified, accepted or                               Withdrawal
approved them on the 30th day after deposit with the
Deposiury of instruments of ratification, accepunce or           1.   At any time after this Protocol has entered into
approval by at least three-fourths of the Contracting            force for a Contracting Party, that Contracting Party
Parties. Thereafter the amendments shall enter into force        may give written notification to the Deposiury of its
for any other Contracting Party on the 30th day after            withdrawal from the Protocol.
that Contracting Party deposits its instrument of ratifi-
cation, accepunce or approval of the amendments.
                                                                 2.   Any Contracting Party which withdraws from the
                                                                 Energy Charter Treaty shall be considered as also having
                          Article 18                             withdrawn from this Protocol.
                      Entry into force
                                                                 3.   The effective date of withdrawal pursuant to
1.     This Protocol shall enter into force on the 30th day      paragraph 1 shall be 90 days after receipt of notification
after the date of deposit of the 15th instrument of ratifi-      by the Deposiury. The effective date of withdrawal
cation, accepunce or approval thereof, or of accession           pursuant to paragraph 2 shall be the same as the effective
thereto, by a State or Regional Economic Integration             date of withdrawal from the Energy Charter Treaty.
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                                  Article 21
force, whichever is later.
                                                                                        Deposiury
2.     For each State or Regional Economic Integration
Organization for which the Energy Charter Treaty has             The Government of the Portuguese Republic shall be the
entered into force and which ratifies, accepts, or               Depositary of this Protocol.
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                                 Article 22
30th day after the date of deposit by such Sute or
Regional Economic Integration Organization of its                                     Authentic texts
instrument of ratification, accepunce, approval or
accession.                                                       In witness whereof the undersigned, being duly auth-
                                                                 orized to that effea, have signed this Protocol in
3.     For the  purposes of paragraph 1, any instrument          English, French, German, Iulian, Russian and Spanish,
deposited by    a Regional - Economic Integration Organ-         of which every text is equally authentic, in one original,
ization shall   not be counted as additional to those            which will be deposited with the Government of the
deposited by   Member Sûtes of such Organization.                Portuguese Republic.
 ---pagebreak--- f    31.12.94                          Official Journal of the European Communities                           No L 380/97
              Done at Lisbon on the seventeenth day of December in the year one diousand nine hundred
              and ninety-four.
              Fait à Lisbonne, le dix-sept décembre mil neuf cent quatre-vingt-quatorze.
              Geschehen zu Lissabon am siebzehnten Dezembcr neunzehnhundertvierundneunzig.
              Fatto a Lisbona il diciassettesimo giorno del mese di dicembre dell'anno millenovecentonovanta-
              quattro.
              CoBepuieHo s Jlncceôone B ceMHaauaTud aem» aexaapsi oaua TMCjma
              ûeB«TbcoTfleBHHOcToveTBeproro roaa.
              Hecho en Lisboa, el diecisiete de diciembre de mil novecientos noventa y cuatro.
              Udfaerdiget i Lissabon, den syttende december nittenhundrede og fireoghalvfems.
              Eytve o~rr| AioaBôva, onç 8éKa eitxà A£Kep0ploo TOO éxooç xtXta evtaicôaia evevfjvxa xéoaepa.
              Gedaan te Lissabon, de zeventiende december negentienhonderd vierennegentig.
              Fcito em Lisboa, aos dezassete de Dczembro de mil novecentos e noventa e quatre
  <•
 ---pagebreak--- No L 380/98                            Official Journal of the European Communities 31.12. 94
            Për Republikën e Shqipërisë
            ^ujjuuiinuiGp ^uiGpuiu|btnrupjuiG hiuûuip
            For Australia
            Fiir die Republik Osterreich
 ---pagebreak--- m
    3 1 . 1 2 . 94                         Official Journal of the European Communities                              N o L 380/99
                   Â3ep6oflnaH aMUH^aH
                                                 s> *.
                   Pour le royaume de Belgique
                   Voor het Koninkrijk België
                   Fiir das Kônigreich Belgien
                   Cette signature engage également la Communauté française de Belgique, la Communauté flamande,
                   la Communauté germanophone de Belgique, la Région wallonne, la Région flamande et la région
                   de Bruxelles-Capitale.
                   Deze handtekening bindt eveneens de Vlaamse Gemeenschap, de Franse Gemeenschap van België,
                   de Duitstalige Gemeenschap van België, het Waals Gewest en het Brussels Hoofdstedelijk Gewest.
                   Dièse Uhterschrift bindet ebenso die Flâmische Gemeinschaft, die Franzôsische Gemeinschaft Belgi-
                   ens, die Deutschsprachige Gemeinschaft Belgiens, die Flâmische Region, die Wallonische Region
                   und die Region Brùssel-Hauptstadt.
                   An iMfl PacnyÔJiiXi Senapycb
  «
                   3a PenyônHKa BtJirapufi
 ---pagebreak--- 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
                                                                                          «
 ---pagebreak---   31.12.94'     - ' / •        ;    Official Journal of the European Communities " No L 380/101 i
            For Kongeriget Danmark
                               Oncc&w^O^J^^
            Eesti Vabariigi nimel
f
            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
 ---pagebreak--- No L 380/102                        Official Journal of the European Communities ^#ïfe^.3iii£;sMi.''-
           Pour la République française
            Fur die Bundesrepublik Deutschland
             Tux TTJV EXXtiynci^ ATiuoKpaxia
 ---pagebreak--- 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
 ---pagebreak---                                                                                wrap*- V J A : - ' ' * ' •"'•»'
No L 380/104                      Officiai ' Journal of the European C o m ^ ^ |v3tfni?4::
           0*04>&je>£
           KaaoxcTOH Pecny6jiMxacnuuu OTMHBH
             Kuprw3 Pecny6«Mxacu iNyii
             Latvijas Republikas varda
 ---pagebreak--- ^^^t^^éêêg^                    Official Journal of the European Communities: No L 380/105
        Fur das Furstentum Liechtenstein
        Lietuvos Respublikos vardu
 <i
        Pour le grand-duché de Luxembourg
 m      For the Republic of Malu
 ---pagebreak--- NbL380/10«c                    • Official Journal of the European Communities ^|^3iri2.vft4;
         Pentru Republica Moldova
         Voor het Koninkxijk der Nederlanden
          For Kongeriket Norge
          21a Rzeczpospolita Polska
 ---pagebreak---      31.12,94                         .Official Journal of .the' European. Communities No L 3 8 0 / 1 0 7 ; ^
              Pela Republica Portuguesa
7•
                                                                        \D;
              Pentru Romania
   •          3a PoccHflcxyo 4>éaepauMD
              Za Slovensku republiku
   •
 ---pagebreak--- •No L 380/108                        Official • Journal of the European Communities 31.12.94
            Za Republiko Slovenijo
                                                    Î
                                                                          c
            Por el Reino de Espana
            For Konungariket Sverige
                                \
                                      <\AQ/(AS~-
            Ftir die Schweizerische Eidgenossenschaft
            Pour la Confédération suisse
            Per la Confederazione svizzera
                               Jfel O.K-<-0<JW_
 ---pagebreak--- '31,12.94/                        Official-Journal, ofthe Foiror>ean Conununities No L380/109
           A3 IIOMM TB7MKMCTOII
           Tiirkiye Cumhuriyeti adina
           TypxueHHCTaH XexyucTHiiMH oauimaH
           3a Yxpaiiiy
 ---pagebreak--- No L 380/110                        Official^Journal of the^F-ùropeari • Communities >; ^^f3>12;94^'
           For the United Kingdom of Great Britain and Northern Ireland
           For the United States of America
           y36exMc-j-ou PecnyCjiHxacH Xyxyuarn iiouHaan
 ---pagebreak---   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,
 ---pagebreak--- 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.
                                                                                                  •
 ---pagebreak---  ---pagebreak---  ---pagebreak---                                                                   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