EURASIA INSIGHT

EU ENERGY COMMISSIONER EXPRESSES CONCERN OVER RECENT KAZAKH LAW
10/29/07
A EurasiaNet Partner Post from RFE/RL

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European Union Energy Commissioner Andris Piebalgs on October 28 expressed concern over a recent Kazakh law on energy and resources, saying that the European Commission is "studying" the possible impact of the law on the liberalization of the country’s energy sector, according to Interfax-Kazakhstan. Piebalgs also expressed concern over the law’s impact on European investment in the country, and said that the commission is analyzing the new law’s conformity "with the regulations of the Energy Charter Treaty, particularly in the field of supporting and protecting investment." He noted that "above all, a favorable and predictable investment climate in the country is a guarantee of the attraction of large-scale energy projects," and warned that a "successful partnership in the energy sector should be based on mutual respect, predictability, and the principle of nondiscrimination." Piebalgs further explained that "Kazakhstan is an important partner for the EU in energy cooperation," noting that "a memorandum of understanding on energy issues has also been signed with Kazakhstan," in which "any new changes" to Kazakh law require "a through study by both sides." The adoption of the new law grants Kazakhstan greater authority over the operations of international energy companies in the country and follows the suspension of operation at the large offshore Kashagan oil field. That suspension, initiated by the Kazakh authorities in August, lasted for three months due to alleged violations of environmental-protection laws, as well as repeated delays and cost overruns by the Italian-led international consortium in charge of developing the oil field (see "RFE/RL Newsline," August 28, 2007). RG

Posted October 29, 2007 © Eurasianet
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