Compatibility of the Provisions Relating to the Protection of Investments Contained in the Energy Charter Treaty with EU Legislation. (Case Study Komstroy LLC v. Republic of Moldova)
Compatibility of the Provisions Relating to the Protection of Investments Contained in the Energy Charter Treaty with EU Legislation. (Case Study Komstroy LLC v. Republic of Moldova)

Summary/Abstract: On September 21, 2021, the decision of the Court of Justice of the European Union (CJEU) rendered its verdict in Komstroy v. Moldova. In this case the Court ruled that the dispute resolution mechanism provided for by the Energy Charter Treaty (TCE) [Article 26 paragraph (2) c)] cannot be applied to intra-EU disputes, as it is incompatible with European law on the matter. On the same occasion, it also found that an assignment of a claim resulting from an electricity supply contract does not constitute an "investment" within the meaning of the provisions of article 1 para. 6 and of article 26 para. 1 of the TCE.

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