Russia has lost Europe trade dispute


Photo: Denis Balibouse / Reuters

Russia lost international trade case against the European Union in the framework of the world trade organization (WTO). This is stated in the decision of the arbitrators of the WTO, which Russia failed to convince.

A key dispute related to the provisions of the so-called EU Third energy package, which prohibits gas producers to own the main gas pipelines. Russian representatives failed to convince the WTO that this document is discriminatory. In addition, Russia failed to persuade the arbitrators that it was unfairly excluded from the gas Directive of the European Union for field pipelines and deprived of preferences for suppliers of liquefied natural gas (LNG).

However, the Russian side, namely the Ministry of economic development, considered the decision of the WTO to be positive. The Agency insists that three of the six points of the proceedings was issued in favor of Russia. The arbitrators declared illegal the EU requirement to sell gas on the exchange, as well as restrictions on the supply of Russian gas via the OPAL pipeline, according to which it can be used at only 50 percent, despite the fact that OPAL could be filled with gas through the “Nord stream”, since it is the onshore continuation.

In addition, the WTO took the side of Moscow under the item on special order certification of gas transmission operators controlled by foreign persons, in Lithuania, Hungary and Croatia. Finally, Russia managed to convince the WTO that the paragraph of the energy strategy of the European Union on the diversification of gas supplies from other countries, except Russia, is discriminatory.

“Decisions on all three blocks of measures can improve the conditions of access of Russian natural gas to the EU market, and also to equalize the conditions of competition on the EU market for Russian suppliers of services of pipeline transport”, — quotes Reuters the position of the Ministry of economic development.

The European Commission reacted positively to the decision of the WTO because the organization rejected the majority of claims.

Trade dispute between Russia and the European Union in the WTO is conducted in 2014, when the Russian Federation fall under the Third energy package. WTO arbitrators formally began consideration of the case until 2016. Because of the Third energy package, in particular, suffered a number of major Russian projects, the main of them is the “South stream”, which came “Turkish stream”.

Video, photo All from Russia.


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