Russia is likely to contest European Union energy rules at the World Trade Organization in what would be its first trade dispute since it joined the global body, a government source said on Thursday. The rules, known as the Third Energy Package, restrict gas company Gazprom’s control over its European pipeline assets and have been an irritant in relations between Russia and the EU, which accounts for half of Russia’s trade. The source, who spoke on condition of anonymity, said Russia – which joined the WTO last month – was looking into whether the EU rules were subject to WTO regulations and that the study should be completed in two weeks. “If the WTO rules are applicable to the Third Energy Package, as well as other measures restricting the Russian imports, we will contest them at the WTO,” the source said. “In all likelihood it is (subject to WTO rules).” Once a WTO member initiates a trade dispute, the country with which it is in disagreement has 60 days to resolve the complaint. After the 60-day period, the complainant can ask the WTO to set up a dispute panel to adjudicate on the issue. Trade diplomats say they expect Russia will take some time to settle in at the WTO before engaging in disputes, as China did after it joined in 2001, but others are watching to see whether Russia or one of its trading partners throws the first punch.
