The European Energy Charter Treaty: Reality or illusion?

The European Energy Charter Treaty (ECT) initiated by the European Union and signed 17 December 1994, addresses opportunities for investment in energy resource development by Western companies in Eastern Europe and Russia. The overall objective is the transfer of Western technology to the East, providing hard currency and economic security thereby encouraging development of democratic institutions. Basic provisions of the ECT are examined including environmental implications, national sovereignty and exceptions to national treatment, as well as outstanding issues and prospects for success.