Energy
26 August 2026 12:00

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 2016 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 integration of the EU and Ukrainian energy markets is addressed by the EU-Ukraine High-Level Working Group on Market Integration, established in 2021 at the initiative of the European Commission.

The overall objective of the Working Group is to implement a roadmap that will enable Ukraine to become part of the decarbonised and integrated EU energy market. This objective is pursued through the establishment of an appropriate international legal and regulatory framework, as well as the necessary policy and market conditions. The roadmap also emphasizes the link between the implementation of reforms and the benefits of market integration, while promoting the elimination of manual or ad hoc market interventions and preventing backsliding on energy sector reforms.

Some issues related to the implementation of joint projects with the EU Member States to improve energy infrastructure in the gas and electricity sectors are discussed within the framework of High Level Group of Central and South-Eastern Europe (CESEC).

In the context of European integration, cooperation between Ukraine and the Energy Community plays a key role. This cooperation includes the implementation of the EU energy acquis, financial support for energy infrastructure development, and the integration of Ukraine into the European energy market. It is also aimed at strengthening energy security, enhancing market liberalisation, and aligning Ukraine's national legislation and regulatory framework with EU standards.

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. In April 2020, the new Operator became an observer member of the European Network of Gas Transmission System Operators ENTSO-G.

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).

Following Russia's military aggression against Ukraine, on 16 March 2022 the power systems of Ukraine and Moldova were successfully synchronised with the Continental European power system under an emergency procedure. As of 1 January 2024, the Ukrainian transmission system operator NPC Ukrenergo became the 40th full member of the European Network of Transmission System Operators for Electricity (ENTSO-E).

Since June 2022, Continental European transmission system operators have gradually increased the cross-border electricity trading capacity available to Ukraine and Moldova, taking into account power system stability and security considerations.

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. 

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.

Ukraine's Energy Strategy until 2050 was approved by Cabinet of Ministers Resolution No. 373-r of 21 April 2023. The Strategy reflects the objectives of the European Green Deal and is based on the principles of an integrated approach to energy policymaking and implementation, creating the conditions necessary for the sustainable development of Ukraine's economy.

On 2 February 2023, the Prime Minister of Ukraine, Denys Shmyhal, and the President of the European Commission, Ursula von der Leyen, signed the Memorandum of Understanding on a Strategic Partnership on Biomethane, Hydrogen and Other Synthetic Gases between Ukraine and the European Union. The Memorandum extends the existing EU–Ukraine energy cooperation to renewable gases produced through sustainable processes. It reaffirms the commitment of both parties to reducing dependence on fossil fuel imports, particularly Russian natural gas, while advancing the transition towards climate neutrality.

The Ukraine Plan, approved by Cabinet of Ministers Resolution No. 244-r of 18 March 2024 for the implementation of the EU's Ukraine Facility, recognises the strategic importance of the energy sector for Ukraine's economy. In particular, it identifies seven key reforms and sixteen performance indicators, together with an implementation timetable, aimed at strengthening energy security, promoting the transition to low-carbon and renewable energy sources, and enhancing the long-term resilience of Ukraine's energy sector.

To support the negotiations on Ukraine's accession to the European Union in the field of energy, on 17 December 2025 the Cabinet of Ministers adopted Resolution No. 1460-r, approving Ukraine's negotiating position for Cluster 4 – "Green Agenda and Sustainable Connectivity" within the accession negotiations with the European Union.

On 7 April 2026, the Verkhovna Rada of Ukraine adopted a law implementing EU legislation on energy market integration, security of energy supply, and competitiveness in the energy sector. The Law establishes the legal basis for the further integration of the Ukrainian and EU electricity markets and represents an important step towards Ukraine's full participation in the European internal energy market.

EU support for Ukraine's energy sector 

In response to the challenges faced by Ukraine as a result of Russia's full-scale military aggression, the European Union has provided extensive emergency assistance to Ukraine's energy sector and has supported a number of initiatives aimed at the decentralisation, restoration, and increased resilience of the country's energy system.

Since February 2022, the EU has allocated more than €4 billion to support Ukraine's energy security. The principal assistance mechanisms include the Ukraine Energy Support Fund, the EU Civil Protection Mechanism, humanitarian assistance, and funding derived from the proceeds of immobilised Russian sovereign assets.

Furthermore, on 24 February 2026, the European Commission announced a €920 million support package to help Ukraine prepare for the 2026–2027 winter season. The funding is intended to support electricity generation, strengthen the resilience of energy networks, improve energy efficiency, and ensure reliable heat supply.

In addition, the European Commission plays an active role in the G7+ Energy Coordination Group for Ukraine, established in 2022 to coordinate and mobilise international donor assistance, particularly for the restoration, protection, and modernisation of Ukraine's energy infrastructure. The Coordination Group brings together the G7 countries, an additional 16 partner countries, as well as international financial institutions and other international organisations.

Cooperation in the nuclear energy sector

Cooperation in the field of nuclear energy includes the harmonisation of Ukraine's legislation with the EU acquis, the development of cooperation with the European Atomic Energy Community (Euratom), the modernisation of nuclear infrastructure in accordance with European standards, the improvement of systems for the management of spent nuclear fuel and radioactive waste, as well as the promotion of scientific and technical cooperation and the training of highly qualified specialists.

Furthermore, such cooperation enables Ukraine to participate in EU mechanisms governing the peaceful use of nuclear energy and contributes to ensuring the safe operation of nuclear power plants in accordance with international and European nuclear safety standards.

Another important area of cooperation concerns ensuring the safe operation of the Chornobyl Nuclear Power Plant facilities and addressing the long-term consequences of the Chornobyl nuclear disaster.

On 10 November 2020, during the plenary session of the European Nuclear Safety Regulators Group (ENSREG), Ukraine's request was considered and the status of observer was granted to the State Inspectorate for Nuclear Regulation of Ukraine. This will allow Ukraine to better integrate into the European network of regulators, participate in expert discussions of new technologies and processes, as well as improve cooperation in the field of nuclear safety and radioactive waste management.

In February 2024, the European Commission launched the European Industrial Alliance on Small Modular Reactors (SMRs) with the objective of accelerating the development, demonstration, and deployment of Small Modular Reactors across Europe. Ukrainian public institutions participating in the Alliance include the State Enterprise "State Scientific and Technical Centre for Nuclear and Radiation Safety" (SSTC NRS) and JSC National Nuclear Energy Generating Company Energoatom (NNEGC Energoatom).


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