Russia entitled to take Lithuania to int'l arbitration over Gazprom affair - Econ Ministry
MOSCOW. Dec 29 (Interfax) - Russia is entitled to take Lithuania to international arbitration over the so-called 'Gazprom affair' if the sides cannot come to terms at bilateral talks in January, Maxim Medvedkov, head of the trade negotiations department at the Russian Economic Development Ministry, told Interfax.
Medvedkov said Russia could gain the opportunity to go to the international court as early as February.
He said issues related to the Third Energy package in the EU were split into two parts.
The first includes measures that some EU members have taken or are taking in fulfillment of the Energy package and that Russia believes violate bilateral agreements to safeguard and encourage capital investment.
"For this reason we have already started the procedure of official consultations with one of these countries, Lithuania, over signs that this agreement is being breached. We are preparing for this procedure with other countries and we will see what the consultations lead to and whether this problem will be resolved," Medvedkov said, adding that Russia had the right to go to international arbitration if understandings are not reached.
He said the point of the Third Energy package was that if you are at the same time a gas producer and transporter, you have to sell your transport assets in Europe. "And this, in our view, is confiscation as you are deprived of your property," he said.
Some bilateral agreements contain a clause that confiscation and nationalization is possible, but only in public interests and only with the payment of fair, adequate compensation. So the logical question arises where the public interest is here and what sort of compensation there should be.
Medvedkov said the second line pursued by the ministry is that of the WTO. He said Russia had questions on the extent to which the Energy package complies with WTO standards and that this issue would also be discussed in the framework of the trade organization.
Russia said in the middle of December that a new draft agreement was being prepared with the EU on trans-border gas pipelines, which Russia needs for assurance that it can build new pipelines in the EU. Russia is also protecting its right to regulate domestic gas prices.
