Experts Call for the Soonest Selection of a Model for Creating Oil Reserves in Ukraine

20 May 2019Increasing dependence on external supply of petroleum products, primarily from the Customs Union countries, necessitates accelerating the work on the creation of the minimum oil and petroleum products stocks in Ukraine, as provided for by EU Directive 2009/119/EC.

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A DiXi Group expert about implementation of the Ukraine-EU Association Agreement: energy reform is simultaneously the most successful and the most disastrous

05 July 2019The fulfillment of Ukraine’s commitments under the Ukraine-EU Association Agreement was discussed at the press briefing held at the Ukrainian Crisis Media Center on 4 July. An assessment of the situation in the energy sector was provided by DiXi Group President Olena Pavlenko. Reform in the energy sector is simultaneously the most successful and the most disastrous, Olena Pavlenko said at the briefing. Among the achievements were implementation of the gas market and daily balancing of the gas market, and the attempt to monetize household subsidies. And also, ratification of Annex 27 to the Association Agreement. “This is the first most advanced agreement between Ukraine and the EU on mutual integration of markets. It says there that Ukraine must consult with the EU concerning development of certain legislative norms and abolish its legislative provisions not conformant with European norms. A part of the EU legislation – Network Codes – must be adopted without essential changes,” Olena Pavlenko said. The issues concerning unbundling of Naftogaz and liberalization of deliveries to household consumers remain unresolved. The biggest disaster was the Constitutional Court’s decision regarding independence of the National Commission for Regulation of the Energy and Utilities Sectors (NCREUS). This is a very acute issue, which should be (have been?) discussed at the Ukraine-EU Summit, Olena Pavlenko stressed. “The decision of the Constitutional Court concerned not the law on the regulatory authority in general but its specific provisions, and some of these provisions explicitly stipulate the regulator’s independence,” Olena Pavlenko said. “At the same time, the Association Agreement and EU directives concerning the electricity and gas markets clearly state that the regulatory authority for these markets must be independent. Therefore, we have a contradiction between an international agreement signed by Ukraine and a decision of the Constitutional Court. This is an alarming situation, because the more legislation concerning integration of markets Ukraine will adopt, the more attempts could be made to overrule certain norms via the Constitutional Court.” The situation with the fulfillment of commitments under the Ukraine-EU Association Agreement is described in DIXI Group’s annual monitoring report Ukraine and the Association Agreement: Endless Repair. The report states that due to elections in both Ukraine and the EU, the year 2019 will become a year of challenges in preserving the pace and quality of pro-European reforms. Unceasing monitoring and pressure from the broad public and European partners to continue reforms, ensuring continuing publicity of the government and successful completion of civil service reform could become a response to these challenges.

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DIXI Group Vice President joins the work on writing the Toronto Principles

05 July 2019A vision document titled The Toronto Principles was presented by representatives of Ukrainian NGOs during the third Ukraine Reform Conference held in Canada on 2-4 July. In this document, they presented their vision of reforms in the next five years. Among the document’s coauthors was DiXi Group Vice President Anton Antonenko. “Speaking about energy, we propose to set as the goal of reform modernization of the energy sector via liberalization, transparent functioning and improved energy efficiency,” Anton Antonenko said. “Increasing the competitiveness of energy markets and opening the sector to quality investments were also some of the topics discussed at the conference’s meetings, such as the one with Kurt Volker, the U.S. Special Representative for Ukraine.” In particular, The Toronto Principles urge to complete reforms of the electricity and gas markets, abolish government subsidies to the energy sector, implement reform of the coal market and reduce coal consumption, implement competition in the heat supply sector, promote development of renewable energy sources, improve the effectiveness of energy consumption, protect vulnerable consumers. The document also urges to improve good governance, ensure energy independence, and implement energy efficiency programs in power generation, transmission and consumption, particularly in the housing sector. Civic organizations also presented Sectoral Briefs on Reforms in Ukraine: analytical documents prepared for the conference in Canada. These documents set out details of the goals and key objectives of reforms in 12 areas of national policy. The Toronto Principles is a vision document conveying generalized vision of over 80 civil society organizations (CSO), representatives of the private sector and citizens actively supporting reforms in Ukraine. The “Principles” envisage joint accountability, experience and ability of these organizations to represent views of Ukrainian civil society. This document was prepared during December 2018 – June 2019 by a group of experts coordinated by the Coalition Reanimation Package of Reforms by consulting with over 100 sectoral experts.

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