As they are used in this Treaty, the following terms have the meanings indicated below:

1)

"Charter" means the European Energy Charter adopted by means of the Concluding Document of the Hague Conference on the European Energy Charter, signed at The Hague on 17 December 1991; the signature of the closing document shall be considered as Signature of the Charter.

2)

"Contracting Party" means any State or regional economic integration organization which has agreed to be bound by this Treaty and in respect of which it is in force.

3)

"Organization of regional economic integration" means any organization established by States to which they have transferred competence in specific fields, some of which are governed by this Treaty, including the power of Make decisions that bind them in these areas.

4) ¹

"Energy materials and products", according to the Harmonized System of the World Customs Organisation and the Combined Nomenclature of the European Communities, means the elements contained in Annexes EM I or EM II.

4 ^Bis ) ²

"Energy-related equipment", under the Harmonized System of the World Customs Organization, refers to the elements listed in the Annexes EQ I or EQ II.

5)

"Economic activity of the energy sector" means any economic activity relating to the operation, extraction, refining, production, storage, land transport, transmission, distribution, exchange, Marketing and selling of energy materials or products, except those listed in Annex Nl, or relating to the dissemination of heat in multiple premises.

6)

"Investment" means any type of having held or controlled directly or indirectly by an investor, including:

(a)

Physical and immaterial, movable and immovable property, and all rights of ownership such as rental, mortgages, preferential claims and guarantees;

(b)

A corporation or a business corporation or the shares, capital or other capital interest in a corporation or business, as well as the bonds, securities or other indebtedness of a corporation or a commercial enterprise;

(c)

Liquid claims or benefit entitlements under a contract of economic value and associated with an investment;

(d)

Intellectual property;

(e)

Yields;

(f)

Any right conferred by law or by contract or arising from licences or authorisations issued in accordance with the law for the exercise of economic activity in the energy sector.

The modification of the form in which the assets are invested does not affect their investment character, and the term "investment" covers all investments, whether they exist on or after the date of entry into force After the date of entry into force of this Treaty for the Contracting Party in which the investor or contracting party originates in the area in which the investment is made, hereinafter referred to as "effective date", on condition That the Treaty applies only to matters affecting those investments after the date Effective.

The term "investment" refers to any investment associated with an economic activity in the energy sector and any investment or class of investments made in its area by a Contracting Party, designated by it as "Charter effectiveness projects", and notified as such to the Secretariat.

7)

"Investor" means:

(a)

In respect of a Contracting Party:

(i)

Any natural person enjoying the citizenship or nationality of that Contracting Party, or permanently residing in its territory in accordance with its applicable law;

(ii)

Any enterprise or other organization organized in accordance with the law applicable in the territory of that Contracting Party;

(b)

In respect of a "third State" means any natural person, undertaking or organization which, mutatis mutandis, complies with the conditions set out in point (a) for a Contracting Party.

8)

"Investing" or "making investments" means making new investments, acquiring all or part of existing investments, or turning to other areas of investment activity.

9)

"Performance" means income derived from or associated with an investment, regardless of the form in which the payment is made, including profits, dividends, interest, capital gains, royalties, management fees, assistance Or any other right or payment in kind.

10)

"Area" means, in relation to a State which is a Contracting Party:

(a)

The territory under its sovereignty, on the understanding that the territory includes land, inland waters and territorial waters; and

(b)

Subject to international law of the sea and in accordance with it: the sea, the seabed and their subsoil on which that Contracting Party exercises sovereign rights and its jurisdiction.

In the case of regional economic integration organizations which are Contracting Parties, the term "zone" means the zone of the member States of that organization in accordance with the provisions contained in the constituent instrument of that organization. Organization.

11) ³ (a) "WTO" means the World Trade Organization established by the Agreement establishing the World Trade Organization.

(b) "WTO Agreement" means the Agreement establishing the World Trade Organization, its annexes and the relevant decisions, declarations and memoranda of understanding, as amended, amended or amended at a later date.

(c) "GATT 1994" means the General Agreement on Tariffs and Trade, as specified in Annex 1A of the Agreement establishing the World Trade Organisation, as amended, amended or amended at a later date.

12)

"Intellectual property" includes copyright and related rights, trademarks, geographical indications, industrial designs, patents, topographies of integrated circuits and protection Information not disclosed

(13) (a) "Protocol on the Charter of Energy" or "Protocol" means a treaty whose negotiation is authorized and the text adopted by the Conference of the Charter and which is concluded by two or more Contracting Parties in order to complete, To replace, extend or amplify the provisions of this Treaty for a specific sector or category of activity falling within the scope of this Treaty, or for the areas of cooperation referred to in Title III of the Charter.

(b)

"Declaration of the Energy Charter" or "declaration" means a non-binding instrument, the negotiation of which is authorized and the text approved by the Conference of the Charter and which is concluded by two or more Contracting Parties with a view to Specify or supplement the provisions of this Treaty.

14)

"Freely convertible currency" means a widely traded currency in international foreign exchange markets and widely used in international transactions.

This Treaty establishes a legal framework to promote long-term cooperation in the field of energy, based on complementarity and mutual benefits, in accordance with the objectives and principles of the Charter.

Contracting Parties shall work to promote access to international markets for energy materials and products and equipment related to energy ¹ Commercial conditions and, in general, the development of an open and competitive energy market.

Nothing in this Treaty shall derogate from the relations between Contracting Parties which are members of the WTO ² , to the provisions of the WTO Agreement as applied between these Contracting Parties.

1. No Contracting Party may apply trade-related investment measures that are inconsistent with the provisions of s. III or XI of GATT 1994 ¹ ; this provision is without prejudice to the rights and obligations of the Contracting Parties resulting from the WTO Agreement and the Art. 29.

2. The measures in question shall include any investment measure which is compulsory or enforceable under national law or any administrative regulation, or whose respect is necessary for obtaining an advantage, and which requires:

(a)

The purchase or use by a company of products of national origin or of any other national source, whether in terms of specific products, in terms of the volume or value of the goods, or in terms of the proportion of the volume or Value of its local production; or

(b)

A purchase or use by a business of imported goods or services that are limited to an amount proportionate to the volume or value of the local goods or services that it exports,

Or restricted:

(c)

The importation by a company of products used in its local production or in relation to it in general or in an amount proportionate to the volume or value of the local production that it exports;

(d)

The import, by a business, of goods or services used in or in connection with its local production, the access of the undertaking being limited to the exchange for an amount proportionate to the inflow of foreign currency which is attributable to The person; or

(e)

The export or sale for export of goods by a company, whether in terms of specific products, in terms of the volume or value of the goods or in terms of a proportion of the volume or value of its local production.

3. Nothing in par. 1 cannot be construed as preventing a contracting party from applying the trade-related investment measures described in s. 2 (a) and (c) as a condition of eligibility for the promotion of exports, foreign aid, public contracts or preferential tariff or quota programmes.

4. Notwithstanding s. 1, a Contracting Party may temporarily maintain trade-related investment measures which have been applied for more than 180 days at the date of signature of this Treaty, subject to the provisions of the Annex TRM relating to Notification and phasing out.

Each Contracting Party shall work in order to combat market distortions and barriers to competition in the economic activities of the energy sector.

2. Each Contracting Party shall ensure that, within the limits of its jurisdiction, it has and applies the necessary and appropriate legislative provisions to deal with any unilateral and concerted anti-competitive conduct in the activities Energy Sector Economic Development.

3. Contracting Parties with experience in the application of the competition rules shall carefully examine the possibility of providing technical assistance on request and within the limits of available resources. Other contracting parties for the development and implementation of competition rules.

4. Contracting Parties may cooperate in the application of their competition rules through consultations and exchanges of information.

5. Where a Contracting Party considers that a particular anti-competitive conduct observed in the zone of another Contracting Party has a negative effect on an important interest in the objectives defined in this Article, it may Notify the other Contracting Party and request that the competent authorities of the other Contracting Party initiate appropriate enforcement action. The Contracting Party making the notification shall include in the notification sufficient information to enable the Contracting Party which receives the notification to identify the anti-competitive conduct which is the subject of the notification. Notification and at the same time propose any other information and cooperation that it is able to provide. The Contracting Party which receives the notification or, where appropriate, its competent competition authorities may consult the competition authorities of the Contracting Party which has made the notification and Take full account of the request of the other Contracting Party when deciding whether or not to initiate coercive action in relation to the alleged anti-competitive conduct indicated in the notification. The Contracting Party which has received the notification shall inform the other Contracting Party of its decision or the decision of its competent authorities in the field of competition and shall inform the other Contracting Party, if it so wishes, of the reasons for the decision. If enforcement action is taken, the Contracting Party that has received the notification shall notify the other Contracting Party of its result and, to the extent possible, of any significant intermediate developments.

6. Nothing in this Article requires a Contracting Party to provide information contrary to its laws on the disclosure of information, confidentiality or trade secret.

7. The procedures described in s. 5 and art. 27, para. 1, constitute the only means provided for in this Treaty for the settlement of disputes that may arise with respect to the application or interpretation of this Article.

(1) Each Contracting Party shall take the necessary measures to facilitate the transit of energy materials and products in accordance with the principle of free transit and without distinction as to the origin, destination or ownership thereof Energy products and products, or discrimination in price formation on the basis of such distinctions, as well as without imposing unreasonable delays, restrictions or taxes.

2. The Contracting Parties shall encourage the competent bodies to cooperate:

(a)

The modernisation of energy transport equipment necessary for the transit of energy materials and products;

(b)

The development and operation of energy transport equipment serving the zone of more than one Contracting Party;

(c)

Measures to compensate for the effects of interruptions in the supply of energy materials and products;

(d)

To facilitate the interconnection of energy transport equipment.

3. Each Contracting Party undertakes to ensure that its provisions on the transport of energy materials and products and the use of energy transport equipment process energy materials and products in transit in a manner No less favourable than materials and products originating in or destined for its own area, unless an existing international agreement provides otherwise.

4. In the event that energy transport equipment does not permit the transit of energy materials and products on commercial terms, the Contracting Parties shall not create any obstacles to the establishment of new capacities, except Contrary to a law applicable and in conformity with s. 1.

5. A Contracting Party in the area of which energy materials and products are transported shall not be held:

(a)

To allow the construction or modification of energy transport equipment; or

(b)

To allow additional transits or transits using existing energy transport equipment,

If it can prove to the other contracting parties concerned that the safety or effectiveness of its energy systems, including its security of supply, would thus be jeopardising.

The Contracting Parties shall guarantee, subject to subs. 6 and 7, the transit of established flows of energy materials and products to or from the zones of other Contracting Parties or between those zones.

A Contracting Party in the area of which energy materials and products are transported shall not, in the event of a dispute concerning any matter arising from that transit, interrupt or reduce the existing flow of materials and Or to allow any entity subject to its control or to order an entity under its jurisdiction to interrupt or reduce that flow, before the completion of the dispute settlement procedures described in subs. 7, except where expressly provided for in a contract or other agreement governing such transit or authorised in accordance with the decision of the conciliator.

7. The following provisions shall apply to the dispute described in s. 6, but only after the exhaustion of all contractual or other means of dispute settlement agreed previously between the contracting parties to the dispute or between any entity referred to in s. 6 and an entity of another Contracting Party to the dispute:

(a)

A Contracting Party to the dispute may refer the matter to the Secretary-General by a notification summarising the subject matter of the dispute. The Secretary-General shall notify all Contracting Parties accordingly.

(b)

Within 30 days of receipt of such notification, the Secretary-General shall, in consultation with the parties to the dispute and the other Contracting Parties concerned, appoint a conciliator. This conciliator shall have experience of the issues in dispute and shall not be a national, citizen or permanent resident in the territory of a party to the dispute or of any of the Contracting Parties Concerned.

(c)

The conciliator shall seek the agreement of the parties to the dispute on a solution of the dispute or on a procedure for reaching such a resolution. If, within 90 days of his appointment, he has failed to reach such an agreement, he shall recommend a resolution of the dispute or a procedure for reaching such a resolution and shall decide on the provisional tariffs and other The terms and conditions to be complied with for the transit from the date it determines to the settlement of the dispute.

(d)

The Contracting Parties undertake to observe and to ensure that entities subject to their control or under their jurisdiction comply with any provisional decision taken under point (c) in respect of customs tariffs and conditions In the 12 months following the conciliator's decision or until the settlement of the dispute, whichever comes first.

(e)

Notwithstanding item (b), the Secretary-General may choose not to appoint a conciliator if he finds that the dispute concerns a transit that is or has been the subject of the dispute settlement procedures provided for in points (a) to (d) and that those procedures Did not result in a settlement of the dispute.

(f)

The Conference of the Charter adopts model provisions on the conduct of the conciliation procedure and on the remuneration of conciliators.

8. Nothing in this Article derogates from the rights and obligations of Contracting Parties under international law, including customary international law, and existing bilateral or multilateral agreements, including rules Relating to submarine cables and pipelines.

9. This Article shall not be construed as obliging a Contracting Party which does not have a specified type of energy transport equipment for transit to take measures under that Article in respect of that type Of energy transport equipment. Such a Contracting Party is, however, required to comply with the provisions of s. 4.

10. For the purposes of this Article:

(a)

"Transit" means:

(i)

Transport, through the area of a Contracting Party or to or from the port facilities located in its area for loading or unloading purposes, of energy products and materials originating in the area of a Other State and intended for the area of a third State, provided that the other State or the third State is a Contracting Party; or

(ii)

The transport, through the area of a Contracting Party, of energy products and materials originating in the zone of another Contracting Party and intended for the zone of that other Contracting Party, except where the two Contracting Parties They shall record their decision by means of a common registration in Annex N. The two Contracting Parties may delete their entries in Annex N by jointly notifying, in writing, their intention to the Secretariat, which forwards this notification to all other Contracting Parties. The deletion takes effect four weeks after this notification.

(b)

"Energy transport equipment" means high-pressure gas pipelines, high voltage power transmission networks and transmission lines, crude oil pipelines, pipelines for the delivery of coal slurries, pipelines for Petroleum products and any other fixed equipment specifically for the handling of energy materials and products.

The Contracting Parties agree to promote access to and transfer of energy technology on a commercial and non-discriminatory basis in order to promote efficient trade in energy products and materials, and Investments and to implement the objectives of the Charter, subject to their laws and regulations and the protection of intellectual property rights.

2. Accordingly, to the extent necessary to give effect to s. 1, the Contracting Parties remove existing obstacles and do not create new obstacles to the transfer of technology in the field of energy materials and products and related equipment and services, subject to the obligations of Non-proliferation and other international obligations.

Contracting Parties recognize the importance of open capital markets to encourage capital flows to finance trade in energy materials and products and to achieve and facilitate investment in energy Economic activities of the energy sector in the areas of other contracting parties, in particular those with economies in transition. Consequently, each Contracting Party shall endeavour to promote access to its market for capital to enterprises and nationals of other Contracting Parties, for the purpose of financing trade in materials and energy products and for the purposes of Investment in the economic activities of the energy sector in the areas of those other Contracting Parties, on the basis of treatment no less favourable than that accorded in circumstances similar to its own Businesses and nationals or businesses and nationals of any other Contracting Party or any third country, whichever is the most favourable.

2. A Contracting Party may adopt and apply programmes providing for access to public loans, grants, guarantees or insurance in order to facilitate trade or investment abroad. It shall provide such facilities, in accordance with the objectives, limitations and criteria of such programmes (including the grounds, objectives, limitations or criteria relating to the headquarters of the applicant's undertaking of such facilities or the place of delivery) Goods and services provided in the context of such facilities), for any investment in the economic activities of the energy sector of other contracting parties or for the financing of trade in materials and energy products with Other Contracting Parties.

In the implementation of programmes of economic activities in the energy sector aimed at improving the economic stability and financial climate of the contracting parties, they seek to encourage operations and to use them The experience of relevant international financial institutions.

4. Nothing in this Article shall prevent:

(a)

Financial institutions to apply their lending or collateral practices based on market principles and prudential considerations; or

(b)

A Contracting Party to take action:

(i)

For prudential reasons, including the protection of investors, consumers, depositors, policyholders or persons with a fiduciary obligation on the part of a financial service provider; Or

(ii)

To ensure the integrity and stability of the financial system and capital markets.

1. Each Contracting Party shall encourage and create, in accordance with the provisions of this Treaty, stable, equitable, favourable and transparent conditions for the realization of investments in its area by investors of other parties Contracting. These conditions include the undertaking to grant, at any time, fair and equitable treatment to the investments of investors of other contracting parties. Such investments shall also enjoy the most consistent protection and security possible, and no Contracting Party shall, in any way, interfere with unreasonable or discriminatory measures, management, maintenance, Use, enjoyment or disposition. Under no circumstances can these investments be treated in a less favourable manner than that required by international law, including treaty obligations. Each Contracting Party shall comply with its obligations vis-à-vis an investor or with respect to the investments of an investor of another Contracting Party.

(2) Each Contracting Party shall endeavour to accord to investors of other Contracting Parties, in respect of the carrying out of investments in its area, the treatment defined in subs. 3.

(3) For the purposes of this Article, "treatment" means the treatment accorded by a Contracting Party and which is no less favourable than that accorded to its own investors or to investors of any other Party The treatment to be retained is the one that is the most favourable.

4. A complementary treaty will require any party to the terms and conditions set out therein to give investors of other parties, for the carrying out of investments in its area, the treatment defined in subs. (3) This Treaty shall be open for signature by States and regional economic integration organizations which have signed or acceded to this Treaty. Negotiations on this additional treaty will begin at the latest 1 ^Er January 1995, which is expected to be concluded by 1 ^Er January 1998.

5. Each Contracting Party shall endeavour, in respect of the carrying out of investments in its zone:

(a)

Limit the exceptions to the treatment defined in s. 3;

(b)

Phase out existing restrictions on investors of other contracting parties.

6.

(a) A Contracting Party may, in respect of the carrying out of investments in its area, voluntarily declare at any time at the Conference of the Charter, through the Secretariat, that it intends not to introduce New exceptions to the treatment defined in s. 3.

(b)

In addition, a Contracting Party may at any time voluntarily commit itself to grant to investors other Contracting Parties for the realization in its area of investments in certain or all of the economic activities Of the energy sector, the treatment defined in subs. These commitments shall be notified to the Secretariat and recorded in Annex VC and shall be binding under this Treaty.

7. Each Contracting Party shall accord to investments made in its area by investors of other contracting parties, and their related activities, including their management, maintenance, use, enjoyment or disposition, Treatment as favourable as it accords to the investments of its own investors or investors of any other contracting party or of any third State, as well as to their management, maintenance, use, enjoyment or Provision, the treatment to be retained is the most favourable treatment.

8. The implementing rules for s. 7 under the programmes under which a Contracting Party grants a grant or other financial assistance or enters into a contract for research and technological development in the field of energy is reserved for the Treaty Complementary to s. 4. Each Contracting Party shall inform the Conference of the Charter, through the Secretariat, of the terms and conditions it applies to the programmes referred to in this paragraph.

Each State or organization of regional economic integration which signs or accedes to this Treaty shall submit to the Secretariat, on the date on which it signs the Treaty or deposits its instrument of accession, a report summarising all the provisions Legislative, regulatory or other matters:

(a)

Exceptions to s. 2; or

(b)

The programs referred to in subs. 8.

The Contracting Parties shall keep their reports up to date by promptly communicating the changes to the Secretariat. These reports are reviewed periodically by the Charter Conference.

With regard to point (a), the report may indicate the segments of the energy sector in which a Contracting Party grants investors of other Contracting Parties the treatment defined in subs. 3.

With regard to point (b), the review by the Conference of the Charter may consider the effects of the programmes in question on competition and investment.

10. Notwithstanding the other provisions of this Article, the treatment defined in s. 3 and 7 does not apply to the protection of intellectual property; the processing of the account is the one provided for in the corresponding provisions of the international agreements applicable to the protection of property rights Parties to which the respective Contracting Parties are parties.

11. For the purposes of s. 26, the application by a Contracting Party of one of the trade-related investment measures described in Art. 5, para. 1 and 2, to an investment by an investor of another Contracting Party that exists at the time of such application shall be considered, subject to Art. 5, para. 3 and 4, as a breach of an obligation of the first Contracting Party under this Part.

Each Contracting Party shall ensure that its domestic law provides effective means for the introduction of claims and enforcement of rights in respect of investments, investment agreements and authorisations Investment.

Subject to its laws and regulations concerning the entry, stay and work of natural persons, each Contracting Party shall examine in good faith the requests made by investors of another Contracting Party and by the Staff who are employed by these investors or as part of the investments of these investors in order to be allowed to enter and stay temporarily in their area in order to engage in activities related to the realization or the Development, management, maintenance, use, enjoyment or disposal of Investments in question, including the provision of basic technical advice or services.

(2) Any Contracting Party shall permit investors of another Contracting Party which have investments in its zone, as well as the investments of such investors, to employ the basic personnel chosen by such investors or Investments without regard for nationality or citizenship provided that such basic personnel have been authorised to enter, stay and work in the area of the first Contracting Party and that the recruitment in question is in conformity The conditions, terms and limits of the duration of the authorisation granted to this basic staff.

1. Except where s. 13 applies, an investor of a Contracting Party which suffers losses in respect of an investment in the area of another Contracting Party by reason of a war or other armed conflict, of a national state of emergency, of Civil unrest or other similar events occurring in that area benefits from that other Contracting Party, in respect of any restitution, compensation or compensation or any other regulation, of the most Favorable that this Contracting Party accords to other investors, be it its own Investors, investors of another contracting party or a third country.

2. Without prejudice to s. 1, an investor of a Contracting Party which, in one of the situations referred to in that paragraph, suffers losses in the area of another Contracting Party resulting from:

(a)

The requisition of its investments or a part thereof by the forces or authorities of the latter; or

(b)

The destruction of its investments or of any part thereof by the forces or authorities of the latter, which was not required by the exigencies of the situation,

Is granted a refund or compensation which, in both cases, must be prompt, adequate and effective.

(1) The investments of an investor of a Contracting Party made in the zone of another Contracting Party shall not be nationalized, expropriated or subject to one or more measures having effects equivalent to nationalization or Expropriation, hereinafter referred to as "expropriation", except where:

(a)

Is made for reasons of public interest;

(b)

Is not discriminatory;

(c)

Is carried out with the guarantees provided for by law, and

(d)

Is accompanied by the prompt payment of adequate and effective compensation.

This compensation is equivalent to the fair market value of the expropriated investment at the time immediately preceding the one in which the expropriation or announcement of the expropriation was officially known and affected the value of the investment, Hereinafter referred to as the "Date of Estimate".

This fair market value shall be expressed, according to the investor's choice, in a freely convertible currency on the basis of the prevailing market exchange rate for that currency at the date of valuation. Compensation also includes an interest at a commercial rate established on the basis of the contract from the date of expropriation to the date of payment.

2. The investor concerned shall have the right to initiate a prompt review, according to the law of the Contracting Party which expropriates, by a judicial authority or other competent and independent authority of that Contracting Party, of its case, of The estimate of its investment and the payment of the compensation, in accordance with the principles set out in par. 1.

3. To prevent any ambiguity, expropriation covers situations in which a contracting party expropriates the assets of a company or company that operates in its area and in which an investor of another party Contracting has an investment, including through the holding of securities.

(1) Each Contracting Party shall ensure, in respect of investments made in its area by investors of another Contracting Party, the freedom of transfers in and out of the zone, including the transfer:

(a)

Initial capital plus any additional capital necessary for the maintenance and development of an investment;

(b)

Yields;

(c)

Payments made under a contract, including the amortization of principal and interest payments due under a borrowing agreement;

(d)

Unspent revenue and other remuneration of personnel engaged abroad in connection with that investment;

(e)

Proceeds from the sale or liquidation of all or part of an investment;

(f)

Payments resulting from the settlement of a dispute;

(g)

Compensation payments pursuant to s. 12 and 13.

2. The transfers referred to in paragraph 1 shall be carried out without delay and (except in the case of yields in kind) in a freely convertible currency.

3. Transfers shall be effected at the prevailing market exchange rate on the date of transfer in respect of cash transactions in the currency to be transferred. In the absence of a foreign exchange market, the rate to be used is the most recent rate applied to domestic investments or the most recent exchange rate for the conversion of currencies into special drawing rights, the rate to be retained being that which is Most favourable to the investor.

4. Notwithstanding s. 1 to 3, a Contracting Party may protect the rights of creditors or ensure compliance with laws on the issuance, trade and exchange of obligations and the enforcement of judgments in civil, administrative and criminal proceedings, by Fair, non-discriminatory and good faith enforcement of its laws and rules.

5. Notwithstanding s. 2, Contracting Parties which were Member States of the former Union of Soviet Socialist Republics may provide in agreements concluded between them that transfers of payments are made in the currencies of those parties Contracting Parties, provided that the agreements in question do not deal with the investments of investors of other Contracting Parties carried out in their area in a less favourable manner than the investments of investors of the parties Contracting Parties which have concluded these agreements or the investments of investors of a State Third parties.

6. Notwithstanding s. 1, item (b), a Contracting Party may restrict the transfer of a return in kind where the Contracting Party is authorized by Art. 29, para. 2, point (a), or by the WTO Agreement to restrict or prohibit exports or the export sale of products constituting a return in kind, provided that this Contracting Party allows for the transfer of yields in Nature as authorized or specified in an investment agreement, investment authorization or any other written agreement entered into between it and an investor of another Contracting Party or its investment.

1. If a Contracting Party or an institution designated by it, hereinafter referred to as "the compensating party", makes a payment in respect of an indemnity or guarantee granted for an investment by an investor, hereinafter referred to as " part Indemnified ", carried out in the area of another Contracting Party, hereinafter referred to as" the host party ", the host party acknowledges:

(a)

The assignment to the compensating party of all the rights and claims relating to such investment; and

(b)

The right of the compensating party to exercise those rights and to assert those claims by means of subrogation.

The compensating party is entitled, in all circumstances, to:

(a)

To receive the same treatment in respect of his rights and claims acquired under the assignment referred to in s. 1, and

(b)

To collect the same payments due in respect of those rights and claims,

Those to whom the indemnified party was entitled under this Treaty for the investment in question.

3. In any proceedings under s. 26, a Contracting Party may not invoke for its defence, for the purposes of a counterclaim or a right of compensation, or for any other reason that compensation or other compensation for all or part of the alleged damage has been Received or will be received pursuant to an insurance or guarantee contract.

Where two or more Contracting Parties have entered into an earlier international agreement or conclude an international agreement whose provisions relate in both cases to the subject matter of Parts III or V of this Treaty:

1)

No provision of Parts III or V of this Treaty shall be construed as derogating from the provisions of this other Agreement or the right to require a settlement of the dispute concerning this item in accordance with that Agreement; and

2)

No provision of the other agreement shall be construed as derogating from the provisions of Parts III or V of this Treaty or the right to require a settlement of the dispute concerning this item in accordance with this Treaty;

Where such provisions are more favourable to the investor or the investment.

Each Contracting Party reserves the right to refuse the benefit of this Part:

1)

To any legal entity if the citizens or nationals of a third country own or have control of that entity and if the entity does not carry on substantial commercial activities in the area of the Contracting Party in which It is incorporated; or

2)

An investment if the Contracting Party refuses to establish that it is an investment by an investor of a third State with which or in respect of which it:

(a)

Does not have diplomatic relations, or

(b)

Adopts or maintains measures that:

(i)

Prohibit transactions with investors of that State, or

(ii)

Be infringed or circumvainted if the benefits provided in this Part were granted to investors of that State or to their investments.

Contracting Parties recognize national sovereignty and sovereign rights over energy resources. They reaffirm that they must be exercised in accordance with and subject to the rules of international law.

2. Without affecting the objectives of promoting access to energy resources and their exploration and exploitation on a commercial basis, this Treaty shall in no way prejudice the rules of the Contracting Parties which Govern the ownership of energy resources.

3. Each State shall retain in particular the right to decide the geographical areas of its area which are intended to be made available for the exploration and exploitation of its energy resources, the optimisation of their recovery and the The rate at which they may be extracted or otherwise exploited, the determination and collection of taxes, royalties or other financial payments that are payable in respect of that exploration and exploitation and to govern the aspects Environment and safety of this exploration, operation and implementation Value in its area, as well as to participate in this exploration and exploitation, in particular through direct participation by its government or state enterprises.

4. The Contracting Parties undertake to facilitate access to energy resources, in particular by granting in a non-discriminatory manner, on the basis of published criteria, authorisations, licences, concessions and contracts of Exploration and exploration for the exploitation or extraction of energy resources.

In pursuing the objective of sustainable development and taking into account its obligations under international environmental agreements to which it is a party, each Contracting Party shall endeavour to reduce Minimum, in an economically efficient manner, any impact that is harmful to the environment, produced inside or outside its area by all the operations of the energy cycle carried out in that area, by ensuring compliance with safety standards. To this end, each Contracting Party acts effectively at the cost level. In these policies and actions, each Contracting Party shall endeavour to take preventive measures to prevent or minimize damage to the environment. The Contracting Parties agree that the polluter operating in their areas should, in principle, bear the cost of such pollution, including transboundary pollution, in accordance with the public interest and without prejudice to the Investment in the energy cycle or international trade. To this end, the Contracting Parties shall:

(a)

Take environmental considerations into account when formulating and implementing their energy policies;

(b)

Promote market-driven pricing and better consideration of environmental costs and benefits throughout the energy cycle;

(c)

With respect to s. 34, para. 4, encouraging cooperation in achieving the environmental objectives of the Charter and cooperation in the field of international environmental standards applicable to the energy cycle, taking into account the differences between Contracting Parties with respect to adverse effects and reduction costs;

(d)

Take particular account of the improvement of energy efficiency, the development and use of renewable energy sources, the promotion of cleaner fuels and the use of technologies and Technological means that reduce pollution;

(e)

Promote the collection and sharing between contracting parties of information on environmentally sound and economically viable energy policies and cost-effective practices and technologies;

(f)

Promote public awareness of the environmental impact of energy systems, the importance of prevention and the reduction of their negative environmental impact and the reality of the costs associated with different preventive measures or Reduction;

(g)

Contribute and cooperate in the research, development and application of energy efficient and environmentally sound technologies, practices and processes, which will reduce to a minimum, in an economically viable manner, the Adverse environmental effects of all aspects of the energy cycle;

(h)

Encourage the establishment of favourable conditions for the transfer and dissemination of such technologies which are compatible with adequate and effective protection of intellectual property rights;

(i)

Promote transparent assessment, at an early stage and prior to any decision, and the subsequent monitoring of the environmental impact of energy investment projects which is of significant environmental interest;

(j)

Promote international awareness and exchange of information on relevant environmental programmes and standards of Contracting Parties, and the implementation of such programmes and standards;

(k)

Participate, on request and within the limits of their available resources, in the development and implementation of appropriate environmental programmes in the Contracting Parties.

(2) At the request of one or more Contracting Parties, disputes relating to the application or interpretation of the provisions of this Article shall be examined by the Conference of the Charter with a view to their settlement, provided that it No agreements exist for the examination of such disputes in other appropriate international fora.

3. For the purposes of this Article:

(a)

"Energy Cycle" means the complete energy chain, including activities related to prospecting, exploration, production, conversion, storage, transport, distribution and consumption of the various forms Of energy, the treatment and disposal of waste, and the decommissioning, cessation or closure of such activities, the negative impact on the environment which must be reduced to a minimum.

(b)

"Environmental impact" means any effect caused by a specific activity on the environment, including human health and safety, flora, fauna, soil, air, water, climate, landscape and historic monuments or others Physical structures or the interaction between these factors; this term also covers the effects on cultural heritage or the socio-economic conditions resulting from the alteration of these factors.

(c)

"Improving energy efficiency" refers to acting to maintain the same production unit (of a good or service) without reducing the quality or yield of the production, while reducing the amount of energy required to generate this Production.

(d)

"Cost effective measures" refers to the achievement of a defined objective at the lowest cost or the greatest possible benefit at a given cost.

1. Laws, regulations, judicial decisions and administrative measures of general application affecting trade in energy materials and products or equipment related to energy ¹ Are a party under s. 29, para. 2, point (a), measures which are subject to the transparency disciplines of the relevant WTO Agreement.

2. Laws, regulations, judicial decisions and administrative measures of general application which are made effective by a Contracting Party, as well as agreements in force between Contracting Parties which affect other matters Covered by this Treaty, shall also be published promptly so as to enable the contracting parties and investors to become acquainted with it. The provisions of this paragraph shall not require a Contracting Party to disclose confidential information if such disclosure prevents the application of the right or is otherwise contrary to the public interest or concerns Damage to the legitimate business interests of any investor.

3. Each Contracting Party shall designate one or more information offices to which requests for information concerning laws, regulations, judicial decisions and administrative measures referred to above may be sent and communicated The location of these offices in the Secretariat, which provides them to any person who requests it.

(1) Unless otherwise provided in this Article, no provision of this Treaty shall create rights or impose obligations in respect of the tax measures of the Contracting Parties. In the event of any inconsistency between this Article and any other provision of the Treaty, this Article shall prevail to the extent that there is an inconsistency.

2. Le par. 3 of Art. 7 applies to tax measures other than taxes on income or on capital; however, it does not apply to:

(a)

To an advantage granted by a Contracting Party in the application of the tax provisions contained in a convention, agreement or arrangement as referred to in subs. 7 (a) (ii); or

(b)

To a tax measure to ensure the effective collection of taxes, except where such a measure of a Contracting Party discriminating against energy materials and products originating in the area of a Other Contracting Party or intended for such an area or arbitrarily restricts the benefits granted in accordance with Art. 7, para. 3.

3. The s. 2 and 7 of the Art. 10 apply to tax measures of Contracting Parties other than taxes on income or on capital; however, they do not apply to:

(a)

For the imposition of the most-favoured-nation obligations in relation to the benefits granted by a Contracting Party in the application of the tax provisions of a convention, agreement or arrangement as referred to in s. 7, point (a) (ii), or resulting from the accession of a regional economic integration organization; or

(b)

A tax measure to ensure the effective collection of taxes, except where the measure establishes arbitrary discrimination against an investor of another contracting party or arbitrarily restricts the benefits Under the investment provisions contained in this Treaty.

4. Art. 29, para. 2 to 8 ¹ , applies to tax measures other than taxes for income or capital.

5.

(a) Art. 13 applies to taxes.

(b)

When a problem arises with respect to s. 13 and whether a tax measure constitutes an expropriation or whether a tax measure alleged to constitute an expropriation is discriminatory, the following provisions apply:

(i)

The investor or the contracting party alleging the expropriation seizes the relevant tax authority as to whether the tax measure constitutes an expropriation or whether it is discriminatory. In the absence of such referral by the investor or the Contracting Party, the bodies to decide the dispute in accordance with Art. 26, para. 2, point (c) or art. 27, para. 2, refer the case to the appropriate tax authorities.

(ii)

The competent tax authorities shall endeavour, within six months of that reference, to settle the matters referred to them. Where it is a matter of non-discrimination, they apply the non-discrimination provisions of the relevant tax convention or, if there is no provision on non-discrimination in the tax convention Applicable to the tax measure in question or if no tax convention is in force between the Contracting Parties concerned, they apply the principles of non-discrimination of the Model Tax Convention on income and Wealth of the Organisation for Economic Co-operation and Development.

(iii)

The bodies to settle disputes in accordance with Art. 2, para. 2, point (c) or art. 27, para. 2, may take into account the conclusions reached by the competent tax authorities on the question of whether the tax measure constitutes an expropriation. They shall take into account the conclusions reached by the competent tax authorities within the period of six months referred to in point (ii) concerning whether the tax measure is discriminatory. They may also take into account the conclusions reached by the competent tax authorities at the end of the six-month period.

(iv)

In no case shall the intervention of the competent tax authorities, beyond the six-month period referred to in point (ii), result in a delay in the procedures laid down in Art. 26 and 27.

6. To prevent ambiguity, s. 14 does not limit the right of a Contracting Party to impose or collect tax by withholding tax at source or by other means.

7. For the purposes of this Article:

(a)

The term "tax measure" covers:

(i)

Any tax provisions of the national law of the Contracting Party or of its political subdivisions or of a local authority; and

(ii)

Any tax provisions of a convention to avoid double taxation and an international arrangement or settlement by which the Contracting Party is bound.

(b)

The following shall be regarded as taxes on income or on capital all taxes on all income, on the whole of capital or on elements of income or capital, including taxes on capital gains arising from the transfer of Property, taxes on immovable property, inheritance and donations, or substantially similar taxes, taxes on the total amount of wages or remuneration paid by undertakings, and taxes on capital gains in Capital.

(c)

"Competent tax authority" means the competent authority under a Convention on Double Taxation in force between the Contracting Parties or, where no such Convention is in force, the Minister or the Ministry Tax officials or their authorized representatives.

(d)

To prevent ambiguity, the terms "tax provisions" and "taxes" do not include customs duties.

(1) Each Contracting Party shall ensure that any State undertaking which it maintains or creates carries out its activities in relation to the sale or supply of goods and services in its area in a manner consistent with its obligations under the Contracting Party under Part III of this Treaty.

(2) No Contracting Party shall encourage or compel such a State undertaking to carry out its activities in its area in a manner inconsistent with the obligations of the Contracting Party under other provisions of this Treaty.

3. Each Contracting Party shall ensure that, when it creates or maintains an entity and delegates regulatory, administrative or other powers, that entity shall exercise those powers in a manner consistent with the obligations of that entity. Contracting Party under this Treaty.

(4) No Contracting Party shall encourage or force an entity to which it grants exclusive or special privileges to carry out its activities in its area in a manner inconsistent with the obligations of the Contracting Party in Under this Treaty.

5. For the purposes of this section, "entity" means any business, institution or other organization or individual.

(1) Each Contracting Party shall be fully liable under this Treaty for compliance with all its provisions and shall take all reasonable measures available to it to ensure that respect by the public authorities And regional and local authorities located in its area.

2. The provisions of Parts II, IV and V of this Treaty relating to the settlement of disputes may be invoked in respect of measures taken by public administrations or regional or local authorities in the area of a party Contracting Party where such measures affect compliance with this Treaty by the Contracting Party.

1. This section does not apply to ss. 12, 13 and 29.

2. The provisions of this Treaty other than:

(a)

Those referred to in s. 1, and

(b)

Those of Part III of this Treaty, in respect of item (i) of this paragraph, do not prohibit a Contracting Party from adopting or applying measures:

(i)

Necessary for the protection of the life or health of humans, animals or plants;

(ii)

Indispensable for the acquisition or distribution of energy materials and products under conditions of shortage which are due to causes beyond the control of that Contracting Party, provided that such measures are compatible with The principles by which:

A)

All other contracting parties are entitled to a fair share of the international supply of energy products and materials; and

(B)

Any measure which is incompatible with this Treaty shall be reported as soon as the conditions which have arisen have ceased to exist; or

(iii)

Intended to benefit investors who belong to indigenous populations or are socially or economically disadvantaged persons or groups or to their investments and notified to the Secretariat, provided that such measures:

A)

Have no significant impact on the economy of the Contracting Party; and

(B)

Make no distinction between investors of other contracting parties and investors of that Contracting Party who are not among the beneficiaries of such measures,

Provided that no measure constitutes a disguised restriction on the economic activities of the energy sector or arbitrary or unjustifiable discrimination between the contracting parties or between investors or other persons Interested parties. Such measures shall be duly reasoned and shall not invalidate or hinder, more than what is strictly necessary to the declared objective, the advantages that one or more other Contracting Parties may reasonably expect under this Treaty.

3. The provisions of this Treaty other than those referred to in s. 1 shall not be construed as preventing a Contracting Party from taking any measure it considers necessary:

(a)

The protection of its essential security interests, including measures which:

(i)

Relate to the supply of military establishments for energy products and products; or

(ii)

Are taken in time of war, in the event of armed conflict or in another emergency situation arising in international relations;

(b)

The implementation of national policies concerning the non-proliferation of nuclear weapons or other nuclear explosive systems, or necessary to fulfil its obligations under the Non-Proliferation Treaty Nuclear weapons, guidelines for the export of nuclear material and other international obligations or arrangements for the non-proliferation of nuclear weapons; or

(c)

The maintenance of public order.

Such a measure cannot constitute a disguised restriction on transit.

(4) The provisions of this Treaty which grant the benefit of the Most-Favoured-Nation clause shall not oblige any Contracting Party to extend to investors of another Contracting Party preferential treatment resulting from:

(a)

Its participation in a free trade area or customs union; or

(b)

A bilateral or multilateral agreement on economic cooperation between the states which have been part of the former Union of Soviet Socialist Republics, pending the establishment of their mutual economic relations on a basis Final.

(1) The provisions of this Treaty shall not be construed as obliging a Contracting Party which is a party to an Economic Integration Agreement (IEA) to extend, under the guise of most-favoured-nation treatment, to another Contracting Party which is not a party to that IEA, a preferential treatment applicable between the parties to that IEA because they are a party to that IEA.

2. For the purposes of s. 1, "IEA" means any agreement aimed at substantial liberalization, inter alia, trade and investment, by ensuring the absence or elimination of any substantial discrimination between the parties to this agreement through the Removal of existing discriminatory measures and/or the prohibition of new or more discriminatory discriminatory measures, either at the time of entry into force of this agreement or on the basis of a reasonable timetable.

3. This Article shall not affect the application of the WTO Agreement in accordance with Art. 29.

1. Disputes between a Contracting Party and an investor of another Contracting Party in respect of an investment made by the Contracting Party in the area of the former Contracting Party relating to an alleged breach of an obligation of The first Contracting Party under Part III shall, to the extent possible, be settled amicably.

(2) If a dispute of this kind could not be settled in accordance with the provisions of paragraph 1 within three months from the time when one of the parties to the dispute requested an amicable settlement, the investor party to the dispute may Choose to submit it for settlement:

(a)

The judicial or administrative courts of the Contracting Party which is a party to the dispute; or

(b)

In accordance with any previously agreed upon dispute settlement procedure; or

(c)

In accordance with the following paragraphs of this Article.

3.

(a) Subject to only items (b) and (c), each Contracting Party shall give its unconditional consent to the submission of any dispute to an arbitration or international conciliation procedure in accordance with the provisions of this Article.

(b) (i) The Contracting Parties listed in Annex ID shall not give such unconditional consent if the investor has, in advance, submitted the dispute in accordance with the procedures set out in subs. 2) points a) or b).

(ii)

For reasons of transparency, each Contracting Party that is indicated in Annex ID shall communicate in writing its policies, practices and conditions in the matter to the Secretariat no later than the date of deposit of its instrument of ratification, Acceptance or approval in accordance with s. 39 or the deposit of its instrument of accession in accordance with Art. 41.

(c)

The Contracting Parties listed in Annex IA shall not give such unconditional consent for disputes arising out of the provision contained in the last sentence of Art. 10, para. 1.

4. If an investor chooses to submit the dispute for settlement, in accordance with subs. 2, point (c), it shall give its consent in writing for the dispute to be brought before:

(a) (i) the International Centre for the Settlement of Investment Disputes, established pursuant to the Convention for the Settlement of Investment Disputes between States and Nationals of Other States, of 18 March 1965 ¹ , hereinafter referred to as the "ICSID Convention", if the Contracting Party of the investor and the Contracting Party to the dispute are both parties to the ICSID Convention; or

(ii)

The International Centre for the Settlement of Investment Disputes, established pursuant to the Convention referred to in point (a), on the basis of the regulation of the additional mechanism for the administration of procedures by the Secretariat of Centre, hereinafter referred to as "the supplementary mechanism settlement", if the Contracting Party of the investor or the Contracting Party to the dispute, but not both, and party to the ICSID Convention;

(b)

A single arbitrator or an ad hoc arbitration tribunal established on the basis of the United Nations Commission on International Trade Law (UNCITRAL) Arbitration Rules; or

(c)

An arbitration proceeding under the aegis of the Arbitration Institute of the Stockholm Chamber of Commerce.

5.

(a) The consent provided for in s. 3, and the written consent of the particular investor under s. 4, are considered to meet the following requirements:

(i)

The existence of written consent of the parties to a dispute for the purposes of chap. II of the ICSID Convention and the regulation of the supplementary mechanism;

(ii)

The existence of a written agreement for the purposes of s. II of the United Nations Convention for the Recognition and Enforcement of Foreign Arbitral Awards, made in New York on 10 June 1958 ² , hereinafter referred to as the 'New York Convention'; and

(iii)

The existence of an agreement in writing of the parties to a contract for the purposes of Article 1 ^Er The UNCITRAL Arbitration Rules.

(b)

Any arbitration under this Article shall take place at the request of one of the parties to the dispute in a State which is a party to the New York Convention. Claims submitted to arbitration pursuant to these provisions shall be deemed to arise from a commercial relationship or transaction for the purposes of s. 1 of the said Convention.

6. A court constituted according to the provisions of s. 4 shall rule on the matters at issue in accordance with this Treaty and the applicable rules and principles of international law.

7. An investor, other than a natural person, who has the nationality of a Contracting Party to the dispute at the date of the written consent referred to in s. 4 and which, before a dispute arose between it and that Contracting Party, was controlled by the investors of another Contracting Party shall be treated for the purposes of s. 25, para. 2 (b) of the ICSID Convention, as a "national of another Contracting Party" and, for the purposes of Art. 1, para. 6, of the regulation of the additional mechanism, as a "national of another State".

8. Arbitral awards, which may include the award of interest, are final and binding on the parties to the dispute. The arbitral awards concerning a measure taken by a political authority or a sub-national authority of the Contracting Party in dispute provide that the Contracting Party may pay monetary compensation instead of any other Compensation granted. Each Contracting Party shall execute such sentences without delay and shall take measures for their effective implementation in its area.

The Contracting Parties shall endeavour to settle disputes concerning the application or interpretation of this Treaty by diplomatic means.

2. Where a dispute has not been resolved in accordance with s. 1 within a reasonable period of time, each party to the dispute may, unless otherwise provided by this Treaty or otherwise agreed by the Contracting Parties in writing, and except in the case of the application or interpretation of s. 6 or s. 19 or, for the Contracting Parties listed in Annex IA, of the last sentence of Art. 10, para. 1, submit the dispute to an ad hoc arbitration tribunal under this Article, subject to written notification addressed to the other party to the dispute.

3. The ad hoc arbitration tribunal shall be constituted as follows:

(a)

The Contracting Party initiating the procedure shall appoint one member of the court and inform the other Contracting Party of that appointment within 30 days of the receipt of the notification referred to in s. 2 and made by the other Contracting Party.

(b)

Within 60 days of receipt of the written notification referred to in s. 2, the other Contracting Party to the dispute shall appoint a member. If such appointment is not made within the prescribed time limit, the Contracting Party which has initiated the procedure may, within 90 days of the written notification referred to in paragraph 1. 2, request that the appointment be made in accordance with this paragraph, point (d).

(c)

A third member, who may not be a national or a citizen of a Contracting Party to the dispute, shall be appointed by the Contracting Parties to the dispute. This member will be the presiding judge. If, within 150 days of receipt of the notification referred to in s. 2, the Contracting Parties are unable to agree on the appointment of a third member, this appointment is made, in accordance with this paragraph, point (d), at the request of one of the two Contracting Parties presented Within 180 days of receipt of such notification.

(d)

Appointments to be made in accordance with this paragraph shall be made by the Secretary-General of the Permanent Court of International Arbitration within 30 days of receipt of an application for that purpose. If the Secretary-General is unable to perform this task, the first Secretary of the Bureau will proceed with the appointment. If, in turn, the latter is unable to perform this task, the appointments shall be made by the Dean of the Judges of the Court.

(e)

Appointments made in accordance with points (a) to (d) shall be made in the light of the qualification and experience of the members who may be appointed, in particular as regards the matters covered by this Treaty.

(f)

In the absence of an agreement to the contrary between the Contracting Parties, the UNCITRAL Arbitration Rules shall apply, except to the extent that it has been amended by the Contracting Parties to the dispute or by the arbitrators. The court shall render its decisions by a majority of the votes of its members.

(g)

The court shall decide the dispute in accordance with this Treaty and the applicable rules and principles of international law.

(h)

The arbitral award shall be final and binding on the Contracting Parties to the dispute.

(i)

Where, in its award, the court considers that a measure adopted by a public authority or regional or local authority in the area of a Contracting Party referred to in Part I of Annex P is not in conformity with this Treaty, each The parties to the dispute may invoke the provisions of Part II of Schedule P.

(j)

The costs of a court, including the remuneration of its members, shall be borne equally by the Contracting Parties to the dispute. The court may, however, at its discretion, allocate a greater share of the costs to one of the contracting parties to the dispute.

(k)

Unless otherwise agreed by the Contracting Parties to the dispute, the Tribunal shall sit in The Hague and shall use the premises and facilities of the Permanent Court of Arbitration.

(l)

A copy of the award shall be filed with the Secretariat, which shall make it available to all.

Disputes between the Contracting Parties relating to the application or interpretation of Art. 5 or s. 29 are not settled in accordance with s. 27, unless otherwise agreed by the Contracting Parties to the dispute.

1. The provisions of this Article shall apply to trade in energy and energy products and equipment as long as a Contracting Party is not a member of the WTO ² .

2.

(a) The trade in energy materials and products and energy-related equipment between Contracting Parties of which at least one is not a member of the WTO shall be governed, subject to point (b) and exceptions and rules provided for in Annex W, by The provisions of the WTO Agreement, as applied and practised, with regard to energy materials and products and equipment related to energy, by WTO Members among themselves, as if all the Contracting Parties were Members of the WTO.

(b)

This trade with a Contracting Party which is a State which has been a part of the former Union of Soviet Socialist Republics may, however, be governed, subject to the provisions of Annex TFU, by agreement between two or more of these States, to 1 ^Er December 1999 or until the admission of that Contracting Party to the WTO, the earliest date being retained.

3.

(a) Each signatory to this Treaty and each State or regional economic integration organization, acceding to this Treaty before April 24, 1998, shall deposit to the Secretariat, on the day of signature or deposit of the instrument of accession, a list All customs duties and other taxes applied or related to the import or export of energy materials and products, by communicating the level of these duties and taxes on the date of signature or filing. Each signatory to this Treaty and each State or regional economic integration organization, acceding to this Treaty before April 24, 1998, shall file with the Secretariat, on that date, a list of all customs duties and other taxes Applied or related to the import or export of energy related equipment, by communicating the level of these duties and taxes on that date.

(b)

Each signatory to this Treaty and each State or regional economic integration organization, acceding to this Treaty on 24 April 1998 or later, shall submit to the Secretariat, on the day of the deposit of the instrument of accession, a list of all Customs duties and other taxes applied or related to the import or export of energy materials and products and energy-related equipment, by communicating the level of these duties and taxes on the date of filing.

Any modification of such duties and other taxes applied or related to the import or export shall be notified to the Secretariat, which shall inform the Contracting Parties thereof.

4. Each Contracting Party shall endeavour not to increase the customs duties or other taxes imposed on the import or export:

(a)

In the case of imports of energy products and products listed in Annex EM I or energy-related equipment listed in Annex EQ I and described in Part I of the programme relating to the Contracting Party referred to in Art. GATT 1994 ³ , beyond the level specified in this program, if the Contracting Party is a member of the WTO;

(b)

In the case of exports of substances and energy products listed in Annex EM I or energy-related equipment listed in Annex EQ I, as well as their imports, if the Contracting Party is not a member of the WTO, beyond The most recently notified level to the Secretariat, unless the provisions applicable under s. 2 (a), do not authorise it.

5. A Contracting Party may not increase customs duties or other taxes beyond the level referred to in par. 4 if:

(a)

In the case of customs duties or taxes applied or related to imports, such a measure shall not be incompatible with the relevant provisions of the WTO Agreement, other than the provisions of the WTO Agreement listed in Annex W; or

(b)

It has, to the extent possible, on the basis of its legislative procedures, notified to the Secretariat its proposal for an increase, offered to the other contracting parties a reasonable opportunity to consult on This proposal and taking into account the comments of the Contracting Parties concerned.

6. As regards trade between Contracting Parties of which at least one is not a member of the WTO, that Contracting Party may not increase the customs duties or other taxes applied or related to the import or export of materials And energy products listed in Annex EM II or energy-related equipment listed in Annex EQ II, above the lowest level applied on the date of the decision of the Conference on the Charter to add the product to the list Of the appropriate Annex.

A Contracting Party may increase customs duties or other taxes beyond that level only if:

(a)

In the case of customs duties or import duties, such a measure shall not be incompatible with the relevant provisions of the WTO Agreement, other than the provisions of the WTO Agreement listed in Annex W; or

(b)

Due to exceptional circumstances not otherwise provided for in this Treaty, the Conference on the Charter shall decide to suspend the obligation which would normally be imposed on a Contracting Party by this paragraph, An increase in a customs duty, subject to the conditions that the conference may impose.

7. By way of derogation from s. 6, in the case of trade referred to in that paragraph, the Contracting Parties listed in Annex BR in respect of the energy materials and products listed in Annex EM II, or Annex BRQ with regard to energy-related equipment Listed in Annex EQ II, may not increase customs duties or other taxes beyond the level resulting from their commitments or any provisions applicable to them under the WTO Agreement.

8. Other customs duties and taxes applied or related to the import or export of energy materials and products or equipment related to energy shall be defined in accordance with the provisions of the Understanding on Interpretation of Art. II, 1 (b) of GATT 1994 as amended in accordance with Annex W.

9. Annex D applies:

(a)

Disputes concerning compliance with the provisions applicable to trade under this Article,

(b)

Disputes relating to the application by a Contracting Party of any measure, whether or not contrary to the provisions of this Article, of which another Contracting Party considers that it nullities or hinders the benefits that it may Wait directly or indirectly under this section, and

(c)

Unless the contracting parties to the dispute have otherwise disposed of them, to disputes concerning compliance with s. 5 between Contracting Parties of which at least one is not a member of the WTO,

On the understanding that Annex D does not apply to disputes arising between Contracting Parties arising from the substance of an agreement which:

(i)

Has been notified in accordance with paragraph 1. 2, point (b) and Annex TFU and satisfies the other requirements of these, or

(ii)

Establishes a free trade area or a customs union as described in s. XXIV of GATT 1994.

The Contracting Parties undertake, in the light of the results of the Uruguay Round of multilateral trade negotiations, taken up mainly in the Final Act established at Marrakesh on 15 April 1994, to begin, by no later than 1 ^Er July 1995 or on the date of entry into force of this Treaty, whichever is later, the examination of appropriate amendments to this Treaty with a view to their adoption by the Conference of the Charter.

At its first meeting, the Provisional Conference of the Charter shall examine the inclusion of energy-related equipment in the trade provisions of this Treaty.

Since adaptation to the requirements of a market economy requires time, the Contracting Parties listed in Annex T may temporarily suspend compliance with their obligations under one or more of the provisions Of this Treaty, subject to the conditions set out in subs. 3, to 6:

Article 6, para. 2 and 5, Art. 7, para. 4, Art. 9, para. 1, Article 10, para. 7-Specific measures, Art. 14, para. 1 (d) - only with regard to transfers of unspent revenue, Art. 20, para. 3, Art. 22, para. 1 and 3.

2. The other Contracting Parties shall assist any Contracting Party which has suspended full compliance with the provisions under subs. 1 to fulfil the conditions for putting an end to this suspension. Such assistance may be given in any form which the other Contracting Parties consider to be the most effective in meeting the requirements notified in accordance with subs. 4 (c), including, where appropriate, bilateral or multilateral arrangements.

3. The applicable provisions, the steps towards a full application of each, the measures to be taken and the date or, exceptionally, the random event which will mark the end of each stage and the adoption of the measures are listed in Annex T For each Contracting Party applying for a transitional regime. Each of these Contracting Parties shall take the measure provided for on the date indicated for the relevant provision and stage as provided for in Annex T. Contracting Parties which have temporarily suspended compliance with their obligations As per s. 1 commit to fully comply with the corresponding obligations by 1 ^Er July 2001. If, due to exceptional circumstances, a Contracting Party considers it necessary to request that this period of temporary suspension be extended or considers that a temporary suspension not yet provided for in Annex T must be introduced, The Conference of the Charter shall rule on this request for amendment of Annex T.

A Contracting Party which has invoked transitional provisions shall notify the Secretariat at least once every 12 months:

(a)

The implementation of any measure laid down in Annex T and the general progress of full compliance with its obligations;

(b)

The progress it hopes to achieve over the next 12 months with a view to full compliance with its obligations, any problems it foresees and its proposals to address such a problem;

(c)

The need for technical assistance to facilitate the completion of the steps laid down in Annex T, as required by the full application of this Treaty, or to solve a problem notified in accordance with point (b), or to Promote further market-oriented reforms and the modernisation of its energy sector;

(d)

The potential need to make a request for the type referred to in s. 3.

5. The Secretariat:

(a)

Shall communicate to all Contracting Parties the notifications referred to in s. 4;

(b)

Communicates and actively promotes, through the use of existing arrangements within the framework of other international organisations, the adequacy between the requirements and the offers of technical assistance referred to in par. 2 and para. 4 (c);

(c)

Shall communicate to all Contracting Parties at the end of each six-month period a summary of all notifications made under paragraph 4 (a) or (d),

The Conference of the Charter shall examine annually the progress made by the Contracting Parties with regard to the application of the provisions of this Article and the adequacy between the requirements and the offers of technical assistance referred to in par. 2 and para. 4 (c). In this review, the Commission may decide to take appropriate action.

The Conference of the Charter may authorise the negotiation of a number of protocols and declarations on the Energy Charter with a view to achieving the objectives and principles of the Charter.

2. Any signatory to the Charter may participate in such negotiations.

(3) A State or regional economic integration organization may be party to a protocol or declaration only if they are or become simultaneously signatories to the Charter and Contracting Parties to this Treaty.

4. Subject to subs. 3 and para. 6, point (a), the final provisions applying to a protocol are defined in this Protocol.

(5) A Protocol shall apply only to those Contracting Parties which agree to be bound by it and shall not derogate from the rights and obligations of Contracting Parties which are not party to this Protocol.

6.

(a) A protocol may assign tasks to the Conference of the Charter and functions to the Secretariat, provided that no such assignment is made by means of an amendment to the Protocol, unless the amendment is approved by the Conference of the Charter, whose approval will not be subject to any of the provisions of the Protocol which are authorised by point (b);

(b)

A Protocol which provides for decisions to be taken by the Conference of the Charter under its provisions may, subject to paragraph (a), stipulate, with regard to those decisions:

(i)

Voting rules other than those contained in s. 36;

(ii)

That only the parties to the Protocol are considered to be Contracting Parties for the purposes of s. 36 or are entitled to vote under the rules laid down in the Protocol.

(1) The Contracting Parties shall meet periodically in the Conference on the Energy Charter, hereinafter referred to as "the Conference of the Charter", with which each Contracting Party is entitled to have a representative. Regular meetings shall be held at regular intervals as determined by the Conference of the Charter.

2. Extraordinary meetings of the Conference of the Charter may be held on the decision of the Conference or at the written request of any Contracting Party, provided that, within six weeks of the notification of that request to the Contracting Parties by the Secretariat, this application shall be supported by at least one third of the Contracting Parties.

3. The Conference of the Charter performs the following tasks:

(a)

It fulfils its obligations under this Treaty and the Protocols;

(b)

It shall monitor and facilitate the application of the principles of the Charter and the provisions of this Treaty and the Protocols;

(c)

It facilitates, in accordance with this Treaty and the Protocols, the coordination of appropriate general measures to implement the principles of the Charter;

(d)

Reviewing and adopting the work programmes to be carried out by the Secretariat;

(e)

Reviewing and approving the annual accounts and budget of the Secretariat;

(f)

It shall examine and approve or adopt the terms of any headquarters or other agreement, including such privileges and immunities as are deemed necessary for the Conference of the Charter and the Secretariat;

(g)

It encourages cooperation efforts to facilitate and promote market-oriented reforms and the modernisation of energy sectors in the countries of Central and Eastern Europe and the former Union of Republics Soviet socialists in the economic transition phase;

(h)

Authorizes and approves the negotiating mandates of the protocols and reviews and adopts the texts of the protocols and their amendments;

(i)

Authorizes the negotiation of returns and approves their publication;

(j)

It decides on accessions to this Treaty;

(k)

Authorizes the negotiation of association agreements and reviews and approves or adopts the text of those agreements;

(l)

It shall examine and adopt the text of the amendments to this Treaty;

(m)

It shall examine and adopt the amendments and technical amendments to the Annexes to this Treaty;

(n) ¹

It reviews and approves the list of signatories listed in or in the BR or BRQ annexes;

(o) ²

It shall examine and approve the addition to Annex EM II of the elements set out in Annex EM I and their deletion from Annex EM I and the addition to Annex EQ II of elements contained in Annex EQ I and their deletion from Annex EQ I;.

(p) ³

It shall appoint the Secretary-General and shall take all decisions necessary for the establishment and functioning of the Secretariat, including the structure, the number of staff members and the working conditions of officials and agents.

4. In carrying out its mission, the Conference of the Charter, acting through the Secretariat, cooperates with the services and programmes of other institutions and organizations having a recognized competence in the relevant matters The objectives of this Treaty, and shall make the greatest use, in a manner as economical and effective as possible, of such services and programmes.

5. The Conference of the Charter may establish the subsidiary bodies that it considers appropriate for the performance of its mission.

The Conference of the Charter shall examine and adopt the rules of procedure and the Financial Regulation.

7. In 1999 and thereafter at intervals (up to five years) to be fixed by it, the Conference of the Charter shall review in depth the functions provided for in this Treaty in accordance with the manner in which the provisions of this Treaty and Protocols have been applied. At the end of each review, the Commission may modify or delete the functions indicated in subs. 3 and may dissolve the Secretariat.

For the performance of its mission, the Conference of the Charter has a Secretariat, composed of a Secretary-General and a staff whose number of members must correspond to the minimum number necessary for effective operation.

2. The Secretary-General shall be appointed by the Conference of the Charter. The first term of office shall be for a maximum of five years.

3. In carrying out its mission, the Secretariat shall be responsible to the Conference of the Charter, to which it shall report.

The Secretariat shall lend to the Conference of the Charter all the assistance necessary for the performance of its mission and shall carry out the functions conferred upon it by this Treaty or by any protocol and any other function conferred upon it by the Conference of the Charter.

The Secretariat may conclude administrative and contractual arrangements which may be necessary for the performance of its mission.

1. The unanimity of the Contracting Parties present and voting at the meeting of the Conference of the Charter to decide on these matters is required for the decisions of the Conference concerned:

(a)

To adopt amendments to this Treaty other than amendments of Art. 34 and 35 and Annex T;

(b)

To approve the accessions to this Treaty under s. 41, of states or regional economic integration organisations which were not signatories to the Charter as at 16 June 1995;

(c)

Authorise the negotiation of association agreements and approve or adopt the text of those agreements;

(d)

Approve the adaptations of the Annexes EM, NI, W ¹ And B;

(e)

Adopt the technical amendments to the Annexes to this Treaty; and

(f)

Approve the appointments, by the Secretary-General, of the members of panels referred to in Annex D by. 7.

(g) ²

It approves the addition to Annex EM II of elements contained in Annex EM I and their deletion from Annex EM I and the addition to Annex EQ II of elements contained in Annex EQ I and their deletion from Annex EQ I;

The Contracting Parties shall make every effort to reach agreement by consensus on any matter requiring their decision under this Treaty. If an agreement cannot be reached by consensus, s. 2 to 5 apply.

2. Decisions on budgetary matters referred to in s. 34, para. 3 (e) shall be adopted by a qualified majority of the Contracting Parties whose estimated contributions, as indicated in Annex B, represent, together, at least three quarters of the total estimated contributions indicated therein.

3. Decisions concerning matters referred to in s. 34, para. 7, are adopted by a majority of three-fourths of the Contracting Parties.

4. Except in the cases indicated in par. 1, points (a) to (g) ³ And to s. 2 and 3, and subject to subs. 6, the decisions provided for in this Treaty shall be adopted by a majority of three-fourths of the Contracting Parties present and voting at the meeting of the Conference of the Charter to decide on these matters.

5. For the purposes of this Article, "Contracting Parties present and voting" means the Contracting Parties which are present and express an affirmative or negative vote, on the understanding that the Conference of the Charter may adopt rules Procedure allowing the Contracting Parties to make such decisions by correspondence.

6. Except as provided in par. 2, the decisions referred to in this Article shall be valid if they collect the simple majority of the votes of the Contracting Parties.

7. In a vote, regional economic integration organizations shall have a number of votes equal to that of their member States Contracting Parties to this Treaty, provided that they do not exercise their right to vote when their member States Exercise theirs, and vice versa.

8. In the case of a persistent backlog of a Contracting Party in compliance with its financial obligations under this Treaty, the Conference of the Charter may suspend the exercise of the right to vote of that Contracting Party in whole or in part.

Each Contracting Party shall bear its own costs of representation at the meetings of the Conference of the Charter and any subsidiary body.

2. The costs of meetings of the Conference of the Charter and any subsidiary body shall be considered as costs of the Secretariat.

3. The costs of the Secretariat shall be covered by the Contracting Parties on the basis of their payment capacity as indicated in Annex B, the provisions of which may be amended in accordance with Art. 36, para. 1, item d).

4. The Protocols shall contain provisions to ensure that all costs of the Secretariat arising therefrom are borne by the Parties to those Protocols.

5. The Conference of the Charter may also accept voluntary contributions from one or more Contracting Parties or from other sources. The costs incurred by these contributions shall not be considered to be expenses of the Secretariat for the purposes of s. 3.

This Treaty shall be open, in Lisbon, from 17 December 1994 to 16 June 1995, at the signature of the States and regional economic integration organisations which have signed the Charter.

This Treaty shall be subject to ratification, acceptance or approval by the signatories. Instruments of ratification, acceptance or approval shall be deposited with the depositary.

(1) Any State or regional economic integration organization may, at the time of signature, ratification, acceptance, approval or accession, declare by a declaration deposited with the depositary that the present Treaty shall be binding on all territories for which it is responsible for international relations, or for one or more of them. This declaration shall take effect at the time when this Treaty enters into force for that Contracting Party.

(2) Any Contracting Party may, at a later date, by a declaration deposited with the depositary, declare itself bound by this Treaty for other territories indicated in its declaration. With respect to those Territories, this Treaty shall enter into force on the ninetieth day after the receipt by the depositary of that declaration.

(3) Any declaration made under the two preceding paragraphs concerning the territories it indicates may be withdrawn by notification to the depositary. Subject to Art. 47, para. 3, the withdrawal shall become effective on expiry of the period of one year from the receipt of such notification by the depositary.

4. The definition of "area" in s. 1, point 10, shall be interpreted with regard to any declaration filed in accordance with this Article.

This Treaty shall be open to the accession of the States and regional economic integration organizations which have signed the Charter from the date on which the time limit for signature of this Treaty has expired, subject to conditions to be approved By the Conference of the Charter. Instruments of accession shall be deposited with the depositary.

Any Contracting Party may propose amendments to this Treaty.

(2) The text of any proposed amendment of this Treaty shall be communicated to the Contracting Parties by the Secretariat at least three months before the date on which it is submitted for adoption to the Conference of the Charter.

3. The amendments of this Treaty, the text of which has been adopted by the Conference of the Charter, shall be communicated by the Secretariat to the depositary, who shall submit them to all Contracting Parties for ratification, acceptance or approval.

The instruments of ratification, acceptance or approval of the amendments of this Treaty shall be deposited with the depositary. The amendments shall enter into force, between the Contracting Parties which have ratified, accepted or approved, the ninetieth day after the deposit with the depositary of the instruments of their ratification, acceptance or approval by the Less than three-quarters of the Contracting Parties. The amendments then enter into force, for any other Contracting Party, on the ninetieth day after the said Contracting Party has deposited its instruments of ratification, acceptance or approval of the amendments.

The Conference of the Charter may authorise the negotiation of association agreements with States or regional economic integration organisations, or with international organisations, in order to pursue the objectives and Implements the principles of the Charter and the provisions of this Treaty or of one or more protocols.

2. Relations established with a State, a regional economic integration organization or an international organization, as well as the rights and obligations arising therefrom, are adapted to the particular circumstances of the association and, In each case, are specified in the Association Agreement.

(1) This Treaty shall enter into force on the ninetieth day after the date of deposit of the thirtieth instrument of ratification, acceptance, approval or accession of a State or of a regional economic integration organization signatory to The Charter as of June 16, 1995.

2. For any State or regional economic integration organization which ratifies, accepts or approves this Treaty or accedes thereto after the deposit of the thirtieth instrument of ratification of acceptance or approval, this Treaty shall enter into Effective on the ninetieth day after the date of deposit by that State or regional economic integration organization of its instruments of ratification, acceptance, approval or accession.

3. For the purposes of s. 1, any instrument deposited by a regional economic integration organization shall not add up to the instruments deposited by the member States of that organisation.

The signatories agree to apply this Treaty provisionally, pending its entry into force for those signatories in accordance with Art. 44, to the extent that such provisional application is not inconsistent with their Constitution or laws and regulations.

2.

(a) Notwithstanding s. 1, any signatory may, at the time of signature, file with the depositary a declaration that it is not in a position to accept the provisional application. The obligation under s. 1 does not apply to the signatory who made the declaration. Any such signatory may withdraw this declaration at any time by written notification to the depositary.

(b)

Neither a signatory that makes a declaration as referred to in point (a) nor the investors of that signatory shall be entitled to the benefit of the provisional application under subs. 1.

(c)

Notwithstanding point (a), any signatory making a declaration as referred to in this paragraph shall provisionally apply Part VII, pending the entry into force of this Treaty for the said signatory in accordance with Art. 44, to the extent that this provisional application is not inconsistent with its laws and regulations.

3.

(a) Any signatory may terminate its provisional application of this Treaty by notifying the depositary in writing of its intention not to become a Contracting Party to this Treaty. The end of the provisional application shall take effect, for any signatory, upon expiry of a period of 60 days from the day on which the depositary receives the written notification of the signatory.

(b)

Where a signatory terminates its provisional application under (a), its obligation under s. 1, to apply Parts III and V to any investment made in its area during the provisional application by investors of the other signatories remains nevertheless valid, in respect of those investments, for twenty years from The effective date of the end of application, unless otherwise provided in point (c).

(c)

Point (b) does not apply to the signatories listed in Annex PA. Any signatory shall be removed from the list set out in that Annex as soon as it has sent a request to that effect to the depositary.

4. Pending the entry into force of this Treaty, the signatories shall meet periodically in the Provisional Conference of the Charter, the first meeting of which shall be convened by the Provisional Secretariat referred to in paragraph 1. 5 not later than 180 days after the date of opening for signature of this Treaty, as specified in s. 38.

The functions of the Secretariat shall be exercised provisionally by a Provisional Secretariat until the entry into force of this Treaty in accordance with Art. 44 and until the establishment of a Secretariat.

6. In accordance with and subject to the provisions of s. 1 or by. 2 (c), as the case may be, the signatories contribute, pursuant to Art. 37, para. 3, the costs incurred by the Provisional Secretariat as if they were Contracting Parties. Any amendment of Annex B by the signatories shall terminate upon the entry into force of this Treaty.

7. Until the entry into force of this Treaty, a State or a regional economic integration organization which accedes to it before its entry into force in accordance with Art. 41 has the rights and obligations of a signatory arising out of this section.

No reservation may be made in respect of this Treaty.

At the end of a period of five years from the date on which this Treaty has entered into force for a Contracting Party, the Contracting Party may at any time notify the depositary in writing of its withdrawal from this Treaty.

2. This withdrawal shall take effect at the end of one year after the date of receipt of the notification by the depositary, or at a later date indicated in the notification of withdrawal.

(3) The provisions of this Treaty shall continue to apply for a period of 20 years to investments made in the area of a Contracting Party by investors of other Contracting Parties or in the area of other parties Contracting Party by investors of that Contracting Party, as from the time when the withdrawal of the Contracting Party of this Treaty takes effect.

(4) Any protocol to which a Contracting Party is a party shall cease to be in force for that Contracting Party at the effective date of its withdrawal from this Treaty.

The Annexes to this Treaty and the decisions referred to in Annex 2 to the Final Act of the Conference of the European Energy Charter, signed at Lisbon on 17 December 1994, form an integral part of this Treaty.

The Government of the Portuguese Republic is the depositary of this Treaty.

In witness whereof, The undersigned, duly authorised for that purpose, have signed this Treaty in the German, English, French, Italian and Russian languages, each text being equally authentic, in a record copy, which is deposited with the Government of the Portuguese Republic.

Done at Lisbon, 17 December 1994.

(Suivent signatures)