The Energy Charter Treaty is a multilateral agreement that grants binding protection for foreign investors and includes also binding provisions for free trade and freedom of transit of energy materials and products.
Un nouveau cas de litige entre investisseurs étrangers et Etats se profile dans le cadre du Traité sur la Charte de l’énergie, à l’origine de nombreuses affaires qui ont défrayé la chronique en Europe.
A federal court in Washington, DC has recognized and enforced a US$331 million arbitral award against Romania under an intra-EU BIT—notwithstanding the objection of the European Commission that the award is incompatible with EU law.
The traditional mechanism of investment arbitration between the investor and the host State has been under attack for some time now from a range of actors and for a variety of reasons.
Critics say the Energy Charter provides excessive legal protection for oil and gas companies, which can claim uncapped reparations from governments who frustrate investments in fossil fuel projects.
The Nord Stream 2 pipeline company has asked the Court of Justice of the EU to annul the amendments to the Gas Directive but Nord Stream 2 reserves itself this option of resorting to legal arbitration as well.