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On July 24, 2020, the panel of arbitrators ruled in favor of the Russian Federation in the WTO dispute over the European Union's application of the "energy adjustments" methodology (DS494).
The arbitration panel found that the EU practice, according to which anti-dumping investigations do not take into account the costs of Russian enterprises to purchase raw materials, contradicts the WTO rules. In addition, certain EU measures regarding welded pipes and ammonium nitrate from Russia were also found to be contrary to the organization's rules. The panel recommended the EU to bring its measures in line with WTO rules. In this regard, Russia expected the EU to implement its international obligations in full in good faith and immediately, after the report was approved at the meeting of the WTO Dispute Resolution Body on August 28, 2020.
Due to the blocking of the appointment of new arbitrators by the United States, the WTO Appellate Body has not been functioning since December 2019 and does not consider new appeals.
However, before the meeting on August 28, the EU filed a so-called "void" appeal in the dispute over "energy adjustments", thereby blocking the approval of the report of the arbitration panel. Thus, Brussels is trying to avoid enforcement of the decision on the dispute, including the cancellation of measures that contradict the WTO rules.
We are disappointed with the actions of our EU partners. We believe that this decision goes against the EU's statements about the need to comply with WTO law. The EU is effectively obstructing justice by trying to extend the possibility of using illegal practices to protect its uncompetitive producers.