Identifier
Created
Classification
Origin
09BRUSSELS1163
2009-08-20 15:25:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
USEU Brussels
Cable title:  

ENERGY CHARTER TREATY SECRETARIAT REACTION TO

Tags:  ECON EPET EUN 
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VZCZCXRO7320
RR RUEHAG RUEHAST RUEHDF RUEHDH RUEHHM RUEHIK RUEHLN RUEHLZ RUEHMA
RUEHPB RUEHPOD RUEHROV RUEHSL RUEHSR RUEHTM RUEHTRO
DE RUEHBS #1163 2321525
ZNR UUUUU ZZH
R 201525Z AUG 09
FM USEU BRUSSELS
TO RUEHC/SECSTATE WASHDC
INFO RUEHZN/ENVIRONMENT SCIENCE AND TECHNOLOGY COLLECTIVE
RUCNMEU/EU INTEREST COLLECTIVE
RUCNMEM/EU MEMBER STATES COLLECTIVE
RUEHMO/AMEMBASSY MOSCOW
UNCLAS BRUSSELS 001163 

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: ECON EPET EUN
SUBJECT: ENERGY CHARTER TREATY SECRETARIAT REACTION TO
RUSSIAN REJECTION

Sensitive but Unclassified - not for Internet distribution.

UNCLAS BRUSSELS 001163

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: ECON EPET EUN
SUBJECT: ENERGY CHARTER TREATY SECRETARIAT REACTION TO
RUSSIAN REJECTION

Sensitive but Unclassified - not for Internet distribution.


1. (SBU) On August 19, 2009 Econ Officer met with a contact
at the Energy Charter Secretariat to discuss Russia's
rejection of the Energy Charter Treaty (ECT). The Russians
have informally informed the Secretariat of their decision,
but have not yet formally notified the ECT repository in
Portugal. The Secretariat is disappointed by the Russian
decision, but is waiting on formal notification from the
Russians and discussions with Member States before deciding
on the course of action going forward. The Russian rejection
will be discussed at two already scheduled ECT meetings on
September 10 (Trade and Transit Group) and September 22
(Strategy Group). Despite Russia's decision to not
provisionally apply the treaty, the Secretariat still sees
the possibility of continuing to engage Russia in the ECT
process. As a signatory, Russia could still attend meetings
and participate in the process as an observer.



2. (SBU) While the Russian statement makes no mention of the
international tribunal hearing the Khodorkovsky case in The
Hague, our contact believes it definitely played a role in
the Russian rejection. The tribunal is currently
deliberating whether or not Russia is bound by the terms of
the ECT because of its provisional application. The draft
Russian rejection, according to an unofficial ECT
translation, states that the Russian Federation "did not
apply provisionally any Treaty provision to the extent that
such provisional application was inconsistent with the
Constitution, laws, or regulations of the Russian
Federation." Our contact believes that Russian PM Putin's
decision to sign the order rejecting the treaty is an
emotional response to the Khodorkovsky case because a
negative ruling could result in Russia having to pay billions
of dollars in damages.


3. (SBU) The Secretariat believes that even without Russia
the ECT has an important role to play. Going forward,
however, the Secretariat sees the need for a strong political
will from its member states to push the ECT process. Our
contact emphasized that a number of member states are still
quite interested in developing a transit protocol and the
Secretariat has seen a strong uptick in interest in the ECT
from the Chinese. The Secretariat also believes now is not
the time to make any strategic decisions about the ECT,
because it will be important to see whether or not Russia
will be willing to remain engaged as an observer.

Murray
.