ZCZC
BCN-14
RUSSIA-EU-NATURAL-GAS-TRADE-WTO
WTO rejects Russian challenge to EU energy rules
GENEVA, Aug 11, 2018 (BSS/AFP) – The World Trade Organization on Friday
rejected most of Russia’s challenge to European Union energy sector rules
barring a single company from controlling both transmission and supply
assets.
Russia initiated the complex case in 2014, arguing that the EU’s bid to
create separation between energy producers and energy distributors was
discriminatory.
But WTO dispute panel dismissed Russia’s claim, finding that the measures
were allowed under the 164-member organization’s rules.
Moscow had filed the case on behalf of its state energy giant Gazprom, a
major supplier of gas to the bloc.
The EU has maintained that its “unbundling” rules were a legal attempt to
prevent one company from acquiring too much control while ensuring open
market competition.
But some, notably in Moscow saw the provisions first adopted in 2009 as a
targeted strike to reduce Europe’s reliance on Gazprom, which had become a
dominant player in the market, especially among former Communist countries.
“This is an important positive outcome for the EU,” the European
Commission said in a statement welcoming Friday’s ruling.
Moscow did secure a partial victory however, as the panel agreed that
certain caps imposed on Russian energy firms by Crotia, Hungary and Lithuania
violated WTO rules.
Both sides have up to 60 days to appeal.
BSS/AFP/HR/1012