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31 May 2024 / Alvaro Nistal , Timothy C Smyth
Issue: 8073 / Categories: Features , Procedure & practice , Environment , EU
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Saying goodbye to the ECT

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175046
The UK’s exit from the Energy Charter Treaty is the latest development in the much-troubled project to modernise the treaty, say Álvaro Nistal & Tim Smyth
  • Considers the implications of the UK’s departure from the Energy Charter Treaty (ECT).
  • After the recent withdrawal of states such as France, Germany, Italy, Poland and Russia, currently there are 50 contracting parties to the ECT.

The UK government announced its intention to withdraw from the Energy Charter Treaty (ECT) on 24 February 2024. The ECT is the only binding, multilateral agreement that deals specifically with trade and foreign investment in the energy sector. It covers all types of energy and the whole energy value chain, including investment, production, transmission, distribution, supply, and consumption by end users.

The ECT was concluded in 1994, following the dissolution of the Soviet Union. At the time, Western states wished to invest in the energy sectors of Eastern Europe and Central Asia, but were concerned about the legal protection of their future investments.

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