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FX.co ★ Russia sues EU over Third Energy Package

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Forex Humor:::2014-05-15T08:42:00

Russia sues EU over Third Energy Package

The Russian Federation did not sweep under the carpet the so-called “Third Energy Package” issue. Thus, Russia has filed its complaint against the EU with the World Trade Organization (WTO) over some provisions of the set of rules. Russia’s representatives say the Third Energy Package contradicts the obligations of the EU in WTO on basic principles of non-discrimination and market access. As they say, politicians come and go, but economic relations live on. As for the provisions condemned by Russia, they prevent a single company from both owning and operating a gas pipeline in the EU. Thus, Russia has been locked in a vice-like grip: either to sell off all of its assets to the EU or entitle independent European companies to operate its pipelines. One more barrier is a complicated procedure of certification with the operator having to confirm the safety of the whole pipeline and compliance with the EU standards. “The Third Energy Package creates serious obstacles to ensure a stable supply of Russian gas to the EU, including a threat to the construction of new transport infrastructure, for example, in the framework of the ‘South Stream,” Maksim Medvedkov, the director of the Ministry of Economic Development’s department of trade negotiations, said. Under WTO procedures, EU and Russian trade officials will have 60 days to try and settle their differences before further legal action is taken.

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