The Ukraine-EU cooperation in the field of energy aims to increase energy security, competitiveness and stability, which is necessary to promote economic growth and achieve progress towards integration to the European market.
This cooperation is based on a comprehensive partnership according to the principles of common interests, reciprocity, transparency and predictability in line with the market economy, the 1994 Energy Charter Treaty, the Ukraine-EU Memorandum of Understanding on Energy Cooperation, the Ukraine-EU Association Agreement etc.
The Ukraine-EU cooperation includes, inter alia, the following areas:
- Implementation of energy strategies and policies and development / processing of forecasts and scenarios, as well as improvement of the statistical accounting system of the energy sector.
- Creation of effective mechanisms for resolving potential crises in the energy sector in the spirit of solidarity.
- Modernization and strengthening of the existing energy infrastructure of common interest, in particular energy generating capacities, integrity, reliability and security of energy networks, gradual integration of Ukraine's electricity system into the European electricity network.
- Development of competitive, transparent and non-discriminatory energy markets based on EU rules and standards through regulatory reforms.
- Cooperation within the framework of the Treaty establishing the Energy Community.
- Intensification and strengthening of long-term stability and security of energy trade on a mutually beneficial and non-discriminatory basis in accordance with international rules, in particular the 1994 Energy Charter Treaty, the WTO Agreement and the Ukraine-EU Association Agreement.
- Making progress towards establishing an attractive and stable investment climate, as well as by promoting mutual investment in the energy sector on a non-discriminatory basis.
- Promoting energy efficiency and energy saving, including through the formulation of energy efficiency policy and the structure of the law and regulatory framework in order to make significant progress in line with EU standards.
- Development and support of renewable energy, taking into account the principles of economic feasibility and environmental protection, as well as alternative fuels.
- Promoting the Mechanism for the Joint Implementation of the Kyoto Protocol to the United Nations Framework Convention on Climate Change to reduce greenhouse gas emissions through energy efficiency and renewable energy projects.
- Scientific and technical cooperation and exchange of information in order to develop and improve technologies in the field of energy production, transportation, supply and final consumption;
- Cooperation within European and international energy standardization bodies.
Cooperation at bilateral and multilateral levels.
Issues of bilateral cooperation between Ukraine and the EU in the field of energy are discussed within the Association bodies: the Association Council, the Association Committee, as well as at the expert level - within Cluster 3 of the Subcommittee on Economy and other Sectoral Cooperation of the EU-Ukraine Association Committee.
The issues of coordination of activities in the energy sector with the EU and the Eastern Partnership countries are discussed within the framework of specially created additional cooperation mechanisms, in particular the EU Energy Panel - Eastern Partnership and Platform 3 "Connectivity, Energy Efficiency, Environment and Climate Change".
Among the issues on the agenda of these mechanisms are the further prospects of the Eastern Partnership in the field of energy, the development of interconnected energy systems, the possibility of financing certain projects and the implementation of energy reforms.
Some issues related to the implementation of projects to improve energy infrastructure in the gas and electricity sectors are discussed within the High Level Group of Central and South-Eastern Europe (CESEC).
The state of harmonization of Ukrainian legislation and cooperation with the EU.
Ukraine ensures the adoption of basic laws, as well as regulations - secondary legislation aimed at implementing European law in the Ukrainian legal system in the field of fuel and energy.
The Law of Ukraine "On the Natural Gas Market" entered into force on October 1, 2015. The adoption of the law marked the fulfillment of the Ukrainian obligations to the Energy Community assumed by signing the Treaty establishing the Energy Community and implementing the provisions and requirements of the EU Third Energy Package (EU Directive 2009/73/EС "On common rules for the internal market in natural gas" and EU Regulation 715/2009 "On conditions for access to the natural gas transmission networks").
To date, the procedure of reforming (unbundling) NJSC "Naftogaz of Ukraine" has been completed. The independent gas transmission system operator, GTS Ukraine Operator LLC, was separated from Naftogaz Ukraine and transferred under the management of JSC MGU, which reports to the Ministry of Finance of Ukraine. In April 2020, the new Operator became an observer member of the European Network of Gas Transmission System Operators ENTSO-G . From January 1, 2020, GTS Ukraine Operator LLC is responsible for gas transmission to European countries and within the domestic market, including the use of an extensive system of gas storage facilities in Ukraine (indicators of transit and gas level in storage facilities by reference).
On 22 September 2016 the Verkhovna Rada (parliament) of Ukraine adopted the Law of Ukraine "On the National Commission for State Regulation of Energy and Public Utilities".
The Law of Ukraine "On the Electricity Market" was adopted by the Verkhovna Rada of Ukraine on 13 April 2017. On 19 July 2017 the Cabinet of Ministers of Ukraine approved the Plan for organizing the preparation of draft acts necessary to ensure the implementation of the Law of Ukraine of "On the Electricity Market", that includes more than 50 drafts of legislation.
Ukraine's new Energy Strategy until 2035 "Security, Energy Efficiency, Competitiveness" was approved on 18 August 2017. To date, the Action Plan for the implementation of the First stage of the Energy Strategy of Ukraine (2020) has been adopted and implemented, which was approved by the order of the Cabinet of Ministers of Ukraine dated 06.06.2018 №497.
The signing ceremony of the "Agreement on the conditions for the future unification of the energy systems of Ukraine and Moldova with the energy system of continental Europe" took place in Brussels on 28 June 2017 during the Assembly of the European Network of Transmission System Operators (ENTSO-E). According to the procedure, the Agreement must also be signed by "Moldelectrica SE" and all system operators that are part of the ENTSO-E Regional Group "Continental Europe".
The agreement entered into force on July 7, 2017 after the signing of the document by a sufficient number of system operators that are part of the ENTSO-E Regional Group "Continental Europe".
ENTSO-E has started publishing data on the unified energy system of Ukraine on the electronic online platform ENTSO-E Transparency Platform.
Ukraine has carried out preparatory work for the development of the project of unification of the Ukrainian and Polish energy systems, the implementation of the project "Energy Bridge Ukraine - European Union". Negotiations were conducted and a positive preliminary assessment was received from the European Commission, the management of the European Network of Transmission System Operators ENTSO-E.
The State Reserve Agency of Ukraine, within the Concept of reforming the state material reserve system, initiated the implementation of the requirements of Directive 2009/119 / ЕС, which obliges member states of the European Energy Community to create minimum stocks of crude oil and petroleum products in case of emergencies.
Together with the experts of the Energy Community, the State Reserve calculated the minimum amount of oil and oil products, as well as developed the Action plan for the Work plan for the implementation of Directive 2009/119 / EC.
Today Ukraine is implementing measures to further reforming the gas and electricity markets in accordance with the norms and rules of the EU's Third Energy Package and provisions of the updated Memorandum of Understanding on the Strategic Energy Partnership between Ukraine and the European Union. Ukraine is taking an active part in the discussion of possible amendments to the Energy Community Treaty.
The Annex XXVII to the Ukraine-EU Association Agreement was updated by the Decision №1/2019 of the EU-Ukraine Association Council of 8 July 2019. It contains a list of binding EU acts in the field of energy, taking into account Ukraine's commitments under the Energy Community and the development of EU law in this area in aimed at integration of Ukraine into the European Union's energy market in the gas and electricity sectors.