Disclaimer: Non-binding discussion document. This paper does not represent the views of any Party. Energy for Europe

Disclaimer: Non-binding discussion document. This paper does not represent the views of any Party. EU 25 IEM Consumption Energy Community IEM Rules TPAElectricityGasOil Energy Charter and regional initiatives and/or Bilateral Instruments Investment and Transit RulesRussiaCaspian Middle East North Africa

Disclaimer: Non-binding discussion document. This paper does not represent the views of any Party. Current Scope of Energy Community Geographically limited to Thessaloniki Agenda States Preparation of potential accession states for competition in IEM Regional integration in Iine with EU practice and not beyond acquis communautaire

Disclaimer: Non-binding discussion document. This paper does not represent the views of any Party. Next steps? Firstly, there are none agreed! Secondly, beyond Thessaloniki states, the European Neighbourhood Policy applies – so qualitatively different issues. Thirdly, security of supply becomes extended – at what point do we stop? Fourthly, need to ensure the value added.

Disclaimer: Non-binding discussion document. This paper does not represent the views of any Party. Ukraine December 1, 2005 Memorandum of Understanding Follows the path of the Athens Memoranda of 2002 & 2003 Last article commits EU to support Ukraine in the Energy Community if all conditions are met. Nuclear (excuse the pun) is critical.

Disclaimer: Non-binding discussion document. This paper does not represent the views of any Party. Black Sea Support infrastructure projects e.g. Romania – Turkey electricity cable, gas issues. Especially we want to see multiple routes through the Black Sea, Turkey and Ukraine, including LNG options. Emphasis on convergence is good, but it is not an element preparing the region for the IEM.

Disclaimer: Non-binding discussion document. This paper does not represent the views of any Party. Caucasus Baku Energy Ministerial in November 2004 launched a new initiative - Baku Process: –Developing enhanced energy cooperation with the technical support provided by INOGATE Programme. –Political at this point and parties working on road maps –Inter-governmental

Disclaimer: Non-binding discussion document. This paper does not represent the views of any Party. Regulators EC is keen on developing regulatory capacity based EU standards. EC supports Black Sea Regulatory Co- operation and will take part if resources allow. ERRA central to this effort.

Disclaimer: Non-binding discussion document. This paper does not represent the views of any Party. Thank You