It’s important that the data made public by the Ministry of Energy and Coal Industry are thoroughly detailed – DiXi Group expert

18 July 2019The situation with the making official data public and its importance to society was discussed at the meeting by the participants of the government-public initiative Together Against Corruption, among whom was Andri Bilous, DiXi Group expert. It took place on 17 July presided by the Public Secretary of the Ministry of Energy and Coal Industry. “As for making data public, the Ministry of Energy and Coal Industry is one of the leaders among other executive authorities,” said Andrii Bilous, Open Data Manager at DiXi Group, during his speech. “At the same time, it is not the formal fulfillment of Resolution 835, it is the making data public with ensuring a sufficiently high level of their quality. They are structured in tabular format, data are updated cumulatively, therefore, it is easy to compare them, and all data are updated regularly.” Despite this, the ministry has room for improvement. So, in expert’s opinion, one should pay extra attention to working with journalists, namely, to tell what data are published, where they are and how to work with them. “We should also work on automating the internal processes of data processing, which would allow more optimal use of human resources,” said Andrii Bilous. “It’s especially important that the data provided by the Ministry of Energy and Coal Industry were deeply detailed. The value of the maximum disaggregated data is that it makes it possible to better see the trends, look for interconnections with other data and identify non-obvious things.” As stated on the official website of the Ministry of Energy and Coal Industry, Maksym Nemchynov, Public Secretary, supported the proposals of experts to introduce additional measures aimed at communicating the requested information to the public. The data of the Ministry of Energy and Coal Industry of Ukraine is opened within the framework of the USAID Transparent Energy Project conducted by DIXI GROUP NGO. It is aimed at improving financial transparency in the energy sector of Ukraine.

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EnergoTransparency Association has considered the Development Strategy for 2020

17 July 2019DiXi Group representatives took part in strategic session of EnergoTransparency Association, which took place in Kyiv on 15-16 July. During the meetings, the members of the Association and representatives of the Renaissance Foundation, Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), as well as the National Secretariat of the Extractive Industries Transparency Initiative (EITI) have developed and approved the goals for the next year, the organizational structure of the Association and the project management regulations to be implemented within the framework of the Association's strategic goals. To ensure the effectiveness of their work, the participants in strategic session agreed on the key functions of the Secretariat, the Board and Association members and the rules for their interaction in order to achieve the success of the projects. “During the brainstorming and group work, the meeting participants formulated for themselves the basic rules of work, and also approved the long-term goal of the Association, which is to create a network of professional organizations that will promote EITI in Ukraine,” said Olga Truten, DiXi Group's Sustainable Development Manager. The EnergoTransparency Association was registered in 2019 to promote the international standard of the Extractive Industries Transparency Initiative (EITI) in Ukraine at the general public level and in the mining regions. The Association's mission is to join the efforts of civil society to cooperate with the authorities and mining companies for the effective management of natural resources and preservation of the environment. The founders of the Association are non-governmental organizations DiXi Group, New Energy, Agency for Development and Cooperation, Bureau of Development. Only members of the Association may be members of a Multi-Stakeholder Group on the implementation of EITI in Ukraine. The event was organized by DiXi Group within the framework of EnergoTransparency Association Institutional Support Project implemented with the support of the International Renaissance Foundation.

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Experts call for a continuation of the European course of reforms in energy and environment sectors after parliamentary elections

10 July 2019On the eve of the parliamentary elections in Ukraine, the experts of the Energy Reforms coalition identified the priority tasks for the implementation of the Association Agreement in the energy and environment sectors. This was discussed during the Briefing “Energy and Environment Reforms: Autumn is Coming” organized by the Energy Reforms coalition of experts within the framework of the project “Enhancing impact of civil society in monitoring and policy dialogue on energy and related sectors’ reforms in line with the Association Agreement implementation” financed by the European Union and co-financed by the International Renaissance Foundation. One of the significant changes in the gas market was the long-awaited launch of daily balancing – a regime that is as close as possible to the functioning of markets in the EU. At the same time, government initiatives on regulated prices for the population were political in nature and did not solve the structural problems of opening this market segment for competition. “The payment crisis faced by Naftogaz also requires immediate decisions. As autumn comes closer, not only these issues will become more pressing. The unbundling and establishing an independent GTS operator, where there is still no full agreement between the government and Naftogaz, as well as conducting gas transit negotiations are the challenges that require coordination both within the country and internationally,” said Roman Nitsovych, the Expert of Energy Reforms Coalition, Research Director at DIXI GROUP. From 1 July 2019, a new model of the electricity market has been launched in Ukraine without a preliminary full testing. “The implementation is not in line with the Law on the Electricity Market and may have serious financial and technical consequences. The expert community should work on minimizing the negative consequences and on ways of proper implementation of the Law,” stressed Illia Populiakh, the Member of Energy Reforms Coalition. The expert also drew attention to the need for elaborating a decision on the future status of NEURC, taking into account the significant risks for the business climate and the entire energy system. In coalition members’ opinion, the issue of the Regulator's (in)dependence will be one of the key issues this autumn. Energy Reforms experts believe that energy efficiency should remain a state’s priority, along with market/market parity prices for energy resources. Given the artificial reduction in gas and utilities prices, there will be a decline in public interest in energy-efficiency measures. “Current problem is regular interruptions of the single state programme “Warm Loans”, as well as delay in the launch of the Energy Efficiency Fund. In the state budget for 2020 there should be made provisions for at least UAH 2 billion for “Warm Loans” programme, as well as launch of the Fund and full monetization of housing subsidies,” said Tetiana Boiko a Coalition Expert and Coordinator of the Energy Programmes at Civic Network OPORA. In the field of environmental protection, the National Emissions Reduction Plan for Large Combustion Plants requires attention. This document is important for reducing emissions of sulfur dioxide, nitrogen oxides and dust from large combustion plants with a capacity of 50 MW and above. “The analysis of environment stances of political forces that will replace the existing parliament and government does not inspire much optimism about the priority of environmental issues for them, but we nonetheless hope for the irreversibility of already implemented reforms and support for the implementation of the Association Agreement in the field of environmental protection and climate change,” noted Nataliia Andrusevych Expert of the Energy Reforms Coalition, Chairman of the Board of Resource and Analysis Center “Society and Environment”. “The issue of choosing a model for creating oil reserves and adopting regulatory acts regulating the mechanisms of reserves formation, conditions for their storage, unblocking (use) and upgrading needs to be resolved as soon as possible,” said expert Hennadii Riabtsev. According to experts, the implementation of Directive 2009/119/EU will require modification, submission and approval of the following regulatory acts: • Resolution of the Cabinet of Ministers of Ukraine on approval of the selected model of minimum oil and petroleum products reserves; • the Law of Ukraine “On Minimum Reserves of Oil and Petroleum Products”; • amendments to the Tax Code of Ukraine No. 2755-VI of 2 December 2010 concerning the target direction of a part of the excise tax on sold petroleum products to the formation and maintenance of minimum stocks; • amendments to the Law of Ukraine “On Licensing of the Types of Economic Activity” No. 222-VIII of 2 March 2015 concerning the inclusion in the list of licensed types of economic activity consisting in maintaining minimum stocks of oil and petroleum products; • amendments to the Law of Ukraine “On the State Material Reserve” No. 51/97-VR of 24 January 1997 and the Reso-lution of the Cabinet of Ministers of Ukraine “On Approval of the Regulation on the State Reserve Agency of Ukraine” No. 517 of 8 October 2014 concerning the establishment of responsibility and duties the State Reserve in the system of formation and maintenance of the minimum stocks of oil and petroleum products; • The Government decree on approval of the regulation on the central company for managing the minimum stocks of oil and petroleum products. As the availability of only oil reserves in their present sense does not guarantee the reliable functioning of critical infrastructure, the experts of the Energy Reforms Coalition advise that the implementation of Directive 2009/119/EU be carried out simultaneously with the formation of all types of fuel and energy reserves, as well as excess maneuvering capacity in the energy sector. Expert opinions are based on the results of regular monitoring of Ukraine's implementation of the Association Agreement with the EU in the areas of energy and environment. The members of six working groups are responsible for the expertise and provide the latest information on reforms and related analytical products. The Coalition consists of: Civic Organization Dixi Group, Civic Network OPORA, All-Ukrainian Civic Organization Energy Association of Ukraine, Resource and Analysis Center “Society and Environment”, and Association “European-Ukrainian Agency”. The results of regular monitoring of Ukraine's implementation of the Association Agreement with the EU in the areas of energy and environment, as well as analytical note “Creation of Oil Reserves: One Can No Longer Delay” are available on the official website of the Energy Reforms Coalition (http://enref.org/)

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Nord Stream 2 will lead to a rise in gas prices for Eastern Europe – Dixi Group President

09 July 2019The expert pointed to the risks of Gazprom's project to increase gas supplies to Europe bypassing Ukraine Nord Stream 2 gas pipeline will create many problems for the Central and Eastern Europe countries. This is how Olena Pavlenko, the President of Dixi Group, commented on the resolution of the committee of the OSCE Parliamentary Assembly, which called the North Stream 2 and TurkStream gas pipelines potential levers of political and economic pressure. Pavlenko said that by supplying about 60% of gas to Germany, Russia would have additional political levers of influence on this country, which plays an important role in shaping the policy, including security policy, of the European Union. “Russia's experience of using gas for geopolitical purposes is well known in Ukraine,” Pavlenko said. She also forecasts a rise in gas prices for a number of countries, including Ukraine, due to the route change. North Stream 2 will not create any additional sources of supply. It will just reorient the same Russian gas, and block other possible options for diversification,” expert noted. The OSCE Parliamentary Assembly Committee is concerned about the implementation of North Stream 2 and TurkStream projects. The resolution calls on the governments of the OSCE member states to abandon the use of energy resources as an instrument of subjugation and pressure on countries dependent on their import or transit. It is worth reminding that a consortium of companies headed by Gazprom has already built the Nord Stream gas pipeline bypassing Ukraine. TurkStream gas pipeline will switch the volumes of Russian gas transported by the southern section of the Ukrainian gas transmission system (GTS) to the maritime route. In Ukraine, it is expected that the construction of Nord Stream 2 gas pipeline will lead to a complete stop of the Russian gas transit through the territory of Ukraine.

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