Originally from Energy Dispute Resolution: Investment Protection, Transit and the Energy Charter Treaty

I INTRODUCTION

The purpose of this chapter is to set forth an overview of the key facets that have influenced Russia’s energy policy and its impact on Russia’s approach towards dispute settlement in the energy sector. First, the chapter will set out Russia’s influence on gas transit in Europe and the disputes that have erupted in part due to Russia’s energy policy. The chapter will then examine the core elements of Russia’s energy policy including Prime Minister Putin’s scholarly writings, the Energy Strategy of Russia for the period of up to 2020, the Energy Strategy of Russia for the period until 2030 and President Medvedev’s recent proposal to govern the global transit of energy materials. The chapter will also describe the impact that these events have had on Russia’s stance towards the Agreement on Partnership and Cooperation (the “PCA”) and the Energy Charter Treaty (the “ECT”).

Then, the chapter will explain Russia’s attitude towards dispute settlement in the energy sector. Three types of disputes will be analysed including investment disputes pursuant to Article 26 of the ECT, gas transit disputes pursuant to Article 7 of the ECT, and international commercial disputes under the auspices of the Stockholm Chamber of Commerce (the “SCC”) involving gas contracts between Russian and Ukrainian companies.