RUSSIA-THE EUROPEAN UNION RELATION AND THE ENERGY CHARTER TREATY

The transmission of natural gas and electricity through transmission lines is crucial in ensuring the development of competitive energy markets and security of energy supply. As international law on energy transit has yet to be developed, states seek alternative resolution mechanisms to address relevant legal disputes. To what extent these mechanisms suffice to deal with international crises between supplier and consumer states has been an open question. It was Article 7 of 1994 Energy Charter Treaty (ECT) which sought a legal mechanism to address international energy disputes for the first time. Nevertheless, energy crises of 2000s and little use of dispute resolution mechanisms adopted under the Treaty in relation to these crises resulted in criticism on the necessity and effectiveness of the ECT. This paper analyses the critics on the ECT and its priorities with respect to energy transit on the basis of YUKOS case and natural gas crises of 2009.