RUSSIA AND THE ENERGY CHARTER TREATY

That this House notes that the Russian state-owned gas monopoly Gazprom has recently entered the United Kingdom domestic and commercial gas supply chain through the purchase of Pennine Natural Gas; further notes that the Russian state-owned oil company Rosneft is due to float shares on the London Stock Exchange in July 2006 and that under proposed amendments to Russia's Subsoil Law the United Kingdom and other foreign companies will be barred from majority ownership of Russian ventures involving strategic assets, including companies operating in the energy sector; further notes that Russia signed the European Energy Charter Treaty in 1994, agreeing to provisionally apply and be legally bound by its provisions, which are aimed at creating stable, equitable, favourable and transparent conditions for investors; believes that the Energy Charter Treaty provides a suitable framework for co-operation in energy matters and for protecting United Kingdom investments in the Russian energy sector; regrets that the Russian government has refused to apply the Treaty's provisions except in cases where it is politically expedient to do so; calls on the Russian government to abide by its international legal obligations enshrined in the Energy Charter Treaty by publicly acknowledging the legal force of the Treaty as it applies to Russia, committing to its application and allowing reciprocal access for United Kingdom and other foreign investors to the Russian energy sector; and urges the Prime Minister to raise these issues with President Putin at the G8 Summit in St Petersburg.