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Energy Charter needs reviewing, adaptation - official

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The Energy Charter is in need of reform and Russia is ready to discuss the issue at all levels, a Russian deputy industry and energy minister said Thursday.
MOSCOW, November 23 (RIA Novosti) - The Energy Charter is in need of reform and Russia is ready to discuss the issue at all levels, a Russian deputy industry and energy minister said Thursday.

The European Union has called on Russia to ratify the agreement, which would force it to open up its pipelines to European companies and provide safeguards for investors.

"The treaty without a doubt played an important role in the past, but today it should be adapted to meet new challenges," Ivan Materov said, adding 12 years have passed since it was signed.

He said transitional economies cannot go along with the "energy-for-investment" scheme, but are interested in reciprocal investment, including the swapping of assets.

"The treaty as it stands now does not in any way protect us against discrimination at the pre-investment stage," the official said.

He said the underlying principle should be a balance of interests for the sides concerned, adding that transit is the central problem for Russia and the main precondition for the document's ratification.

The agreement is set to be a key sticking point at the upcoming EU-Russia summit, which begins Friday in Helsinki. Poland has vetoed EU plans to launch talks at the summit on a new cooperation agreement with Russia, demanding that Moscow first ratify the Energy Charter and end its ban on certain Polish food products.

A senior Russian MP said earlier Thursday Poland's policy with respect to Russia is misguided and counterproductive.

"This Polish blackmail is inappropriate, ill-considered, and short-sighted," said Konstantin Kosachev, head of the State Duma Foreign Relations Committee.

He said Moscow will not sacrifice its interests, not least over Polish meat imports, adding that Russia will continue protecting its consumer market.

"There are problems with Polish meat. When they are resolved, we will resume imports. But if our concerns are not addressed, no linkages will work here," he said.

A Putin aide said Wednesday Russia will not ratify the Energy Charter as it stands, because it would damage the country's economic interests.

"Russia will not ratify the [Energy Charter] treaty and protocol in their present form, and the European Union knows this very well," Sergei Yastrzhembsky said.

Moscow considers the charter to be skewed in favor of energy importers.

"We find it unacceptable that energy transit tariffs should be the same for domestic and foreign consumers. We cannot accept the loss of our natural advantage as a transit country with a unique, diversified pipeline system, over which we will effectively lose control if we ratify the treaty and the protocols as they now stand," he said.

Russian Foreign Minister Sergei Lavrov said Wednesday that Moscow has no intention of ratifying the charter, because it is flawed.

The Energy Charter came into force in 1998.

Russia has refused to ratify it over Europe's demands for access to Russian pipelines for Central Asian states and other countries, which Moscow says will make their natural gas 50% cheaper than Russia's when it arrives in Europe.

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