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Estonia · Law · SE

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The Act on the Ratification of the Agreement on the Interpretation and Application of the Energy Charter Agreement

avaldatud riigiteatajasEstonia· Riigikogu· ET

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18 May 2026

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AVALDATUD_RIIGITEATAJAS

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17 June 2026

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Summary

Estonia has signed an agreement on the interpretation and application of the Energy Charter Treaty, but it also needs ratification. Situations where the Energy Charter Treaty is interpreted as an instrument covering intra-EU relations have created challenges for the European Union, even though this has never been the true meaning of the Energy Charter. The EU, Euratom and the member states have neither wanted nor been able to create mutual obligations through the Energy Charter, because the Energy Charter is designed as a foreign policy tool for energy cooperation with third countries. This is based on the understanding that the EU's internal energy policy is based on extensive and detailed internal market legislation that regulates relations between member states. The EU and the member states indicate by agreement that the dispute between an EU state and an investor from the EU in matters of energy cooperation cannot be resolved in an arbitration court established on the basis of Article 26 of the Charter: these disputes can be resolved by the EU according to law. The purpose of the agreement is to form a clear international legal instrument that arbitration courts and other dispute bodies must take into account in international disputes. Hungary is not a party to the agreement, as it did not agree to the legal basis of the European Union treaties referred to in the agreement. Arbitral tribunals established on the basis of Article 26 of the Charter can resolve cases where the other party to the dispute is a third country or an investor from a third country. Arbitration courts do not have jurisdiction to resolve disputes within the EU, and if they do, such decisions are not enforceable in the EU because they are contrary to EU law. The agreement follows the declaration on the legal consequences of the ECJ's decision in the Komstroy case (Moldova v. Komstroy, case C-741/19) and the common understanding on the inapplicability of Article 26 of the Energy Charter Treaty to intra-EU arbitration proceedings. as a basis.

Machine translation from Estonian. The official text remains authoritative.

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