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Ukraine Fuels Energy Cooperation With the EU


News provided by

Worldwide News Ukraine

18 Apr, 2013, 15:27 GMT

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KYIV, Ukraine, April 18, 2013 /PRNewswire/ --

Ukrainian government has developed an action plan to intensify cooperation with the EU in the energy sector in 2013. The plan is based on the 7th joint Ukraine-EU report on the implementation of the 2005 energy cooperation memorandum of understanding during 2012.

Ukraine intends to comply with the recommendations of the joint report, which envisions further ensuring that Chornobyl nuclear power station is safe, implementation of inner EU energy market regulations, restructuring of Naftogaz company, and introducing the principle of non-discrimination in access of third parties to Ukrainian pipelines. Additional actions include gas market liberalization, establishing quality control for petroleum products in Ukraine, development of clean coal technologies in the country, and adoption of the law on energy efficiency of buildings.

Notably, the Ukraine-EU report, released in February 2012, highlighted Ukraine's accomplishments in the energy sector, including stress tests of nuclear power stations, adoption of law on natural monopolies, implementation of gas market law, and continued privatization in the energy sector (thermal power stations and regional gas managing companies). Additionally, Ukraine met four out of five criteria for the candidacy for the Extractive Industries Transparency Initiative (EITI) membership.

So far, Ukraine's progress in the gas sector included restructuring of Naftogaz, providing access of third parties to its gas transporting system, and signing the EUR 53.5 million agreement with Deutsche Bank regarding modernization of the Soyuz pipeline. In 2011-2012 Ukraine began cooperation with Shell, Chevron, and ExxonMobil regarding gas extraction on its territory. Drilling in eastern region of Ukraine has begun in October 2012.

In March 2012, Ukraine presented LNG terminal feasibility study, notes the report. The billion dollar project envisions construction of LNG terminal in southern Ukraine - near Odesa by 2016.

In July 2012, Ukraine addressed another energy issue - energy efficiency of buildings. A respective action plan was adopted by the Ukrainian government, which will contribute to energy savings across the country. As of now, only the largest companies that face international competition show improvement in the energy efficiency, states the document.

The report also highlights boost in the renewable energy production sector due to the capacity increase at the country's solar power stations.

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