MOSCOW, September 2 (RIA Novosti) – Russian Energy Ministry believes that Moscow has the right to appeal to the World Trade Organization (WTO) in regards to the law on the reformation of the management system of the Ukrainian gas network, the newspaper Izvestiya wrote on Tuesday, with reference to the Deputy Energy Minister.
"Ukraine has no right to maintain or impose restrictions either on participation of foreign capital (e.g. Russian) in the authorized capital of the operating company, or on the acquisition of the gas transit system. If Ukraine violates this obligation, then Russia, being a member of the WTO, whose economic operators have been adversely affected by the said violation, has the right to appeal to the Dispute Settlement Body (DSB) of the WTO," the ministry said in response to the request by the Russian lawmaker, Andrei Krutov, who suggested filing a complaint against Ukraine to the WTO because of the infringement of the rights of Russian companies.
Deputy Energy Minister Anatoly Yanovsky, however, stressed that the existence of such a bill is not a direct basis for a complaint to the WTO, in contrast to a specific action, for instance, an attempt to purchase shares. Yanovsky also noted that the WTO rules to date have not been applied to pipeline transit of energy. On this basis, the deputy minister suggested that the need for a complaint to the WTO should be considered by a competent authority, which is the Economic Development Ministry.
On August 14, the Ukrainian Parliament adopted a law allowing the government to create an operator of the gas transportation system (GTS) of the country. Some 49 percent of its shares may be acquired by investors from the United States and the European Union. The document stipulates that the operating company will be entitled to "management and/or concession or lease" of main gas pipelines and underground storage facilities. Additionally, the law allows the Ukrainian government to establish a separate operator of underground gas storage facilities, with 49 percent of its shares also available for purchase by the US and European investors. The shareholders of the GTS operators will be approved directly by the parliament.
Government Plenipotentiary for European Integration of Ukraine Valery Pyatnitskyi previously stated that the law on the reform of management system of the Ukrainian GTS did not violate Ukraine's obligations under the WTO. Kiev does not restrict access to transportation for members of the WTO.
