46 COUNTRIES SIGN CHARTER ON EUROPEAN ENERGY

Dec. 26, 1994
Ministers from 46 countries, including Russia, have signed the European Energy Charter in Lisbon. The action ended 3 years of negotiations over terms for cooperation in trade and investment between western and eastern Europe. At least 34 out of a total 50 potential signatory countries needed to sign the charter to bring it into force. The charter is designed to protect western investment in eastern European projects.

Ministers from 46 countries, including Russia, have signed the European Energy Charter in Lisbon.

The action ended 3 years of negotiations over terms for cooperation in trade and investment between western and eastern Europe.

At least 34 out of a total 50 potential signatory countries needed to sign the charter to bring it into force. The charter is designed to protect western investment in eastern European projects.

Energy & Transport Commissioner Marcelino Oreja of the European Commission (EC) said Canada, Hungary, Japan and Norway were unable to sign but declared their intention to do so once internal consultation is complete. They have until June 16, 1995, to sign.

The U.S. also did not sign, citing several concerns about the final text. But the EC said U.S. authorities made it clear their country remains committed to the overall goals of the Energy Charter and to the treaty process.

Oreja told reporters while it may appear simple to decide on an energy treaty, negotiations turned out to be complex. Three years of negotiation was not much, given the level of complexity, he said.

STAGE IS SET

"Now the treaty has been signed, conditions are created for a long term cooperation policy on trade and investment between eastern and western Europe," Oreja said.

"The door has been open since the fall of the Berlin wall, but now investors know what to expect behind that door. No investment is without risk, but at least the rules of the game have been defined, limiting the legal risks to a minimum, and creating the climate necessary for a surge of investments in the field of energy."

Copyright 1994 Oil & Gas Journal. All Rights Reserved.

Issue date: 12/26/94