Energy Charter: With caution to the East

The ratification of the Energy Charter became especially relevant in connection with the increasing cost of Russian energy resources for Belarus. Officially the Belarusian government expresses interest in cooperation with the structures of the European Union in this area. However experts believe that in reality Belarus does not intend to ratify the Treaty. It still hopes for the a more flexible and conciliatory response from Russia.

History and Geography

The Energy Charter is a system of international treaties, related to energy markets. These treaties determine common transparent rules for the efficient functioning of the international energy market in the areas of trading of resources, investment, transit, and energy efficiency.

The idea of the Energy Charter came from the ex-Prime-Minister of Holland, Mr Ruud Lubbers /(His name was spelled wrongly - two "b"s needed)/ in 1990.  In December 1991 the Energy Charter was signed by the Western European countries, Australia, Canada, Turkey, USA and Japan.

The next step was the consolidation of the declarations in the Energy Charter Treaty. It opened for signature in 1994. At the moment it is signed by 51 countries and separately by the European Union. A number of states, including Australia, Norway, Iceland, Russia and Belarus, signed the Treaty but have not yet ratified it. In the cases of Russia and Belarus, they are not likely to do so in the near future.

"Belarus plays an important role in the energy sphere"

Belarusian officials expressed their thoughts about the prospects for ratification of the Energy Charter in September last year when Mr. Andre Mernier, the Secretary General of the Charter, visited Belarus. He noted that "Belarus plays an important role in the energy sphere, primarily in the area of transit", and ratification of the Charter by Russia and Belarus the Secretary General called a 'big challenge' for himself.

In reply, the vice-Minister of the Belarusian government Mr. Vladimir Semashko, stated that cooperation with the Charter was extremely important for Belarus, referring to the 'famous events' of 2006 and first half of 2007. Obviously, he meant the 'energy conflict' with Russia when the latter raised gas prices for the 'Union state' Belarus.

 "We are prepared to find mutually acceptable solutions, taking into account the fact that Belarus is progressing towards the world economy, into the World Trade Organization", concluded Vladimir Semashko.

Theoretical Benefits

It is true that by joining the Energy Charter Belarus could have real economic benefits, thinks Ms. Tatiana Manenok, an expertin the field, and a journalist with the newspaper 'Belarusy i Rynok'. In an interview with in an interview eurobelarus.info she expressed her that: "Before it was pointless to ratify the Energy Charter bearing in mind the subsidised price of gas from Russia. However when Russia declared a shift to market pricing it would only be logical for Belarus to join the Energy Charter".

Another Belarusian expert, economist Mr. Yarslav Romanchuk agrees with this point of view: "Belarus benefits from working in the common energy sphere with Europe. This gives an opportunity to develop our energy sector with the assistance of foreign private capital and this in turn will develop other sectors of the economy".

Experts believe that ratification of the Energy Charter could enhance Belarus' position as a transit country and could become a significant sign for European companies which investments the Belarusian economy needs very much.

"The visit of the Secretary General of the Energy Charter, Mr. Mernier, became very significant in this regard. There were very 'positive' declarations from the Belarusian side however they have not progressed into concrete decisions", says Tatiana Manenok.

Synchronized with Russia

Belarusian expressions of interest in cooperating with the Energy Charter turned out to be nothing but diplomatic courtesies. This was confirmed by officials from the Belarusian side. Mr. Sergey Zabolotets, the Deputy Chairman of the House of Representatives of the Belarusian Parliament, in the course of the meeting with Mr. Andre Mernier expressed an intention: "Belarus and Russia are connected by the energy agreements. We want to work on the ratification of the Treaty synchronously".

"This could only mean one thing: Belarus will not ratify the Energy Charter Treaty in the near future, neither will Russia", thinks Tatiana Manenok.

In reality the position of Russia on this issue is clear. For example, it was outlined by the Chairman of the Committee for Energy, Transport and Communications of State Duma Mr. Valery Yazev that: "Russia flatly refuses to accept the Energy Charter as it currently stands because Russia is not satisfied with several basic provisions". First of all, Russia strongly objects to the participation of private companies in gas transit, while the Charter provides for transit tariffs being set by auction.

"Belarus does not have an independent policy"

Europe is seeking ways to persuade Russia to ratify the Charter. In particular, it could become crucial while negotiating Russia's accession to the WTO. Many experts are convinced that shifts in this direction are likely in general.

In particular, an associate of the Council of Foreign Policy of Germany, a politician Mr. Alexandr Rar, admitted recently that: "the major concern of Russia should be on markets, that is why it even will not put pressure on its clients". And Belarus, admitting its dependence on the Eastern partner, will remain disenfranchised from the decision making process. "This is a very revealing moment", thinks Ms. Tatiana Manenok, "the situation clearly proves that Belarus does not have an independent policy. It does everything not to provoke the primary supplier of its energy resources. Regardless of the fact that Russia imposed a gas price rise on Belarus, the Belarusian government still pretends to be trying to bargain other 'variants' with "Gazprom" and nevertheless receive some benefits from the Russian supplier of trategic energy resources".

"Making strategic decisions about energy development is a hundred per cent political matter", stated Yaroslav Romanchuk.

By Andrey Alexandrov

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