EU suspends decision in WTO on principled dispute with Russia on energy corrections by submitting appeal to non-functioning body
MOSCOW. Aug 28 (Interfax) - The European Union has appealed to the Appellate Body of the World Trade Organization (WTO) against the panel's conclusions in a dispute with Russia on so-called energy corrections, the Russian Economic Development Ministry said in a statement.
The WTO Appellate Body has not been functioning since December 2019 due to the position of the United States, which blocked the appointment of new members to the body after the expiration of the powers of the previous arbitrators; therefore, the EU has in effect suspended this dispute indefinitely. At the same time, the EU itself has on a number of occasions called on other WTO members to abide by the panel's decisions and not to appeal to the non-functioning appellate instance, otherwise threating possible sanctions on its part.
The EU submitted its appeal to the WTO just before the final approval of the panel's decision - which was in Russia's favor - on this dispute by the Dispute Settlement Body (DSB). Russia had previously submitted a corresponding request for approval, and this issue was on the schedule of the DSB for August 28, but now it will be automatically excluded from the agenda.
The Economic Development Ministry said that the EU was thus obstructing justice, trying to prolong the possibility of using illegal practices to protect its non-competitive producers.
"Before the meeting of August 28, the EU submitted a so-called appeal 'into the void' in the dispute on 'energy corrections', thus blocking approval of the panel's report. In so doing, Brussels is trying to avoid the execution of a decision on the dispute, including cancellation of measures contrary to the WTO rules. We are disappointed with the actions of our partners from the EU. We believe that this decision runs counter to statements of the European Union about the necessity to abide by the legal rules of the WTO. Through its actions, the EU is in effect obstructing justice, trying to prolong the possibility of using illegal practices to protect its non-competitive producers," the ministry said in the statement.