ENERGY SECURITY AND NEW LEGAL FRAMEWORK FOR ENERGY COOPERATION

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ENERGY SECURITY AND NEW LEGAL FRAMEWORK FOR
ENERGY COOPERATION
Ministry of Energy of the Russian Federation

• Expert Group Meeting on Enhancing Regional
  Cooperation for Energy Security in Asia and the
  Pacific
• 9-11 December 2009, Bangkok, Thailand

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ENERGY SECURITY AND NEW LEGAL FRAMEWORK FOR
ENERGY COOPERATION

• Asia-Pacific region is an area for energy
  cooperation
• dynamic economic growth
• energy demand
• energy supply
• producing and consuming countries in the region
• investment requirements

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ENERGY SECURITY AND NEW LEGAL FRAMEWORK FOR
ENERGY COOPERATION
Russian export of oil
2008 238,0 2015 247,0
Europe
2008 90 2015 68
North America
Asia-Pacific Region and Central Asia
2008 2 2015 6
2008 8 2015 26
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ENERGY SECURITY AND NEW LEGAL FRAMEWORK FOR
ENERGY COOPERATION
Russian export of gas
2008 243,0 2015 316,0
Europe
2008 100 2015 70
North America
Asia-Pacific Region and Central Asia
2008 0 2015 20
2008 0 2015 10
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ENERGY SECURITY AND NEW LEGAL FRAMEWORK FOR
ENERGY COOPERATION
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Russia Energy Strategy-2030 Place in the System
of Russian Strategic Documents
ENERGY SECURITY AND NEW LEGAL FRAMEWORK FOR
ENERGY COOPERATION
Concept of long-term social-economic development
up to 2020
Long-term forecast of economy development up to
2030
ES-2030
General scheme gas industry development up to 2030
General scheme of power capacity placement up to
2020
General scheme of oil industry development up to
2020
National program on energy conservation and
energy efficiency up to 2020
Program on long-term development of the Russian
Far East fuel-and-energy complex
Development strategy of electrical energy
industry of the Far East up to 2020
State program on examination and exploration of
the continental shelf of the Russian Federation
Eastern Gas Program
Investment program of the private companies
operated in the fuel-and-energy sector

• under development

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ENERGY SECURITY AND NEW LEGAL FRAMEWORK FOR
ENERGY COOPERATION

• Legal problems in energy sector
• existing international legally binding
  agreements cannot neither prevent nor mitigate
  conflicts in the global energy sector, especially
  in transit
• Legal base should be improved on the base of new
  realities and should cover all the aspects of
  energy supply chain

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ENERGY SECURITY AND NEW LEGAL FRAMEWORK FOR
ENERGY COOPERATION

• Russian President Dmitry Medvedev proposed
  Conceptual Approach to the New Legal Framework
  for Energy Cooperation
• Universal
• Open for accession by third countries
• Comprehensive
• Equal and non-discriminating
• Consistent with relevant obligations under other
  international instruments
• Efficient

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ENERGY SECURITY AND NEW LEGAL FRAMEWORK FOR
ENERGY COOPERATION

• Basic principles of the Conceptual Approach
• Mutual responsibility of energy consuming,
  supplying and transit states for global energy
  security
• Recognition of security of supply and demand as
  key aspects of global energy security
• Unconditional state sovereignty over national
  energy resources
• Nondiscriminatory access to international energy
  markets, which should be open and competitive

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ENERGY SECURITY AND NEW LEGAL FRAMEWORK FOR
ENERGY COOPERATION

• Transparency of all international energy market
  segments (production, export, transit,
  consumption and import)
• Nondiscriminatory investment promotion and
  protection, including new investments into all
  energy chain links
• Promotion of mutual exchange of energy business
  assets within investment activities
• Nondiscriminatory access to energy technologies
• Smooth energy supply to international markets,
  by transit inclusive it implies technological
  reliability of energy infrastructure and physical
  security of its vital elements

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ENERGY SECURITY AND NEW LEGAL FRAMEWORK FOR
ENERGY COOPERATION

• Promotion of infrastructure projects
• Mandatory consultations on and coordination of
  energy policies
• Creation and improvement of early warning
  mechanisms
• Increasing energy efficiency in production,
  processing and transportation
• Promotion of hi-tech cooperation in energy
  sector
• Common efforts towards environmental protection,
  prevention of negative climate change

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ENERGY SECURITY AND NEW LEGAL FRAMEWORK FOR
ENERGY COOPERATION

• Essential elements of Energy Security in Transit
• a principle that transit tariffs should be
  objective, reasonable, transparent,
  nondiscriminatory and cost based
• unacceptability of unauthorized interruption or
  reduction of transit, or intervention in transit
  flows
• coordination mechanisms of the Parties actions to
  optimize transit routs
• responsibility of Parties for losses due to
  avoidance of obligations under the agreement or
  transit treaties
• provisions on system of bodies authorized to
  mitigate emergency situations
• dispute settlement mechanisms, diplomatic
  channels and international arbitration court
  inclusive

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ENERGY SECURITY AND NEW LEGAL FRAMEWORK FOR
ENERGY COOPERATION

• The new legal base may be efficient only if it
  will be supported by main world energy sector
  players
• It should be done by common efforts
• It should be widely discussed

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ENERGY SECURITY AND NEW LEGAL FRAMEWORK FOR
ENERGY COOPERATION

• THANK YOU