Putin Calls for Changes in European Energy Charter

Russian President Vladimir Putin, who was meeting with his European counterparts over the weekend, said on Saturday, Sept. 23, that the European Energy Charter Treaty should be amended or a new document should be drafted.

The Energy Charter Treaty is an international agreement originally based on integrating the energy sectors of the former Soviet Union and Eastern Europe at the end of the Cold War into the broader European and world markets.

?It will be either a new document or an old one incorporating new provisions,? Vladimir Putin said in response to a journalist?s question.

He said in its present form the treaty harmed Russian interests.

?Our producers, who have long-term contracts for [energy] supplies, are unhappy because it [the Charter] puts us in an unfavorable situation in signing long-term transit contracts,? he said, quoted by RIA Novosti.

He also said Russia was concerned about the liberalization of nuclear services market in Europe.

?We agreed that the nuclear materials market in Europe would be liberalized,? he said. ?We believe that our positions are subject to discrimination, and the Russian side annually loses from $200 million to $300 million.?

The original European Energy Charter was signed in the Hague on December 17, 1991, containing a declaration of principles for international energy including trade, transit and investment, together with the intention to negotiate a binding treaty.