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Benefits of Ukraine's Participation in the Energy Charter Process

by Ms. Inna Shcherban - January 2016


The aim of the Energy Charter Treaty (ECT) is to establish a legal framework to promote long-term cooperation in the energy sector. The key provisions of the ECT concern the protection of investment, trade in energy materials and products, transit, energy efficiency and dispute settlement. Ukraine is a founding member of the Energy Charter Process. Having signed the International Energy Charter in May 2015, Ukraine reconfirmed its commitment to the Energy Charter and its continuing interest in its further development.

For Ukraine, as for the main energy transit countries in Europe, the provisions on transit are of particular importance. The ECT transit provisions include a conciliation procedure for the settlement of transit disputes. The procedure aims to ensure the continuity and stability of supply of energy materials and products.

The Model Energy Charter Early Warning Mechanism (EWM), adopted by the Energy Charter Conference in Astana in 2014, is of particular interest for Ukraine in the context of the Russia-Ukraine-EU transit issues. The objective of the EWM “is to provide for a non-binding framework aimed at preventing and overcoming emergency situations in the energy sector related to the transit and supply of electricity, natural gas, oil and oil products through cross-border grids and pipelines.”