Intra-EU Application of the Energy Charter Treaty: A Critical Analysis of the CJEU’s Ruling in Republic of Moldova

Abstract

In its recent judgment in Republic of Moldova (also known as the Komstroy case), the Court of Justice of the European Union (CJEU) took the view that the arbitration clause contained in Article 26(2)(c) of the Energy Charter Treaty (ECT) does not apply to intra-EU investor-State disputes. This article provides a critical analysis of this ruling and highlights the methodological flaws of its reasoning. As part of this analysis, it discusses the implications of the Energy Charter Treaty’s nature as a “mixed agreement” for the scope of application of Article 26(2)(c) and the CJEU’s jurisdiction to interpret the ECT. It also discusses the proper interpretation of Article 26(2)(c) pursuant to the rules on treaty interpretation laid down in the Vienna Convention on the Law of Treaties, including with the help of documents from the ECT’s travaux preparatoires. Finally, the article deals with Republic of Moldova consequences – or rather the lack thereof – for arbitral tribunals and the courts of non-EU countries.