DiXi Group congratulates everyone on International Anti-Corruption Day
International Anti-Corruption Day for DiXi Group is not just a UN-initiated celebration, but a day when we summarize what the team has already done in this direction and determine what steps need to be taken in the future in order to make the energy sector more transparent and markets more competitive and open.
- Since 2009, DiXi Group has been actively involved in the implementation of the Extractive Industries Transparency Initiative in Ukraine. Many years of effort have not been in vain: compared to 2014, the percentage of mining companies that provide data on payments in favour of the state for reconciliation increased from 31 to 81%. This indicates that the mining industry in Ukraine is becoming more transparent and businesses are not afraid to show how much they pay in taxes. The first EITI report in 2013 highlighted the situation with the extraction and transportation of only two minerals, namely oil and gas. The EITI report 2017, presented this summer, is no less than a mining encyclopedia that examines the regulatory environment, legislation, data on exploration and production of oil, gas, iron ore, titanium and manganese, coal, clay, sand and stones. In 2018, our efforts led to the adoption of the Law of Ukraine “On Ensuring Transparency in Extractive Industries”, which is a successful case for other EITI member states, and this year we facilitated the adoption of secondary legislation and joined the relevant Multi-Stakeholder Group that oversees the implementation of the EITI. Our team is proud to be directly involved in increasing the transparency of the domestic extractive sector, as transparency is the main enemy of corruption.
- Even in the training field that has recently appeared in DiXi Group, our team is doing everything possible to ensure that civil servants know how open and competitive energy markets should work. During 2020, the recently launched educational platform “Kyiv School of Energy Policy”, among other things, focused on a topic that has never been considered before as part of the training of Ukraine’s regulatory authorities. Specifically, the professional monitoring of energy markets by national regulators in accordance with the rules of REMIT (Regulation on Wholesale Energy Market Integrity and Transparency) applicable in the EU. During the 4 courses, more than 100 civil servants, including leadership and officials of the National Energy and Utilities Regulatory Commission and the National Securities and Stock Market Commission, were trained to understand the different types and volumes of manipulation in wholesale energy markets.
- And the Energy transparency index has become the icing on the transparency cake. Two years ago, DiXi Group think tank team developed the Index and for the first time comprehensively assessed the sector’s information openness in Ukraine. The final score of Ukraine at that time was 43 out of 100 possible, last year this figure rose to 48 points, and in 2020 reached 58 points. That is, if two years ago the openness of the sector was assessed as low, today it is already at the average level. However, from the very beginning, the Index was conceived as a flexible and universal tool that can be used not only for Ukraine but also for a group of countries, such as the Eastern European region, Energy Community member states, countries of Baltic-Black Sea cooperation and in a wider international format. That is why in 2020 the Index became international for the first time: together with partners, our team conducted assessments for three countries of the region that are members of the Energy Community, namely Ukraine, Moldova and Georgia. And on 17th of December, these results will be presented at the presentation “International Energy Transparency Index 2020: sector openness test – positive or negative?”
We believe that the international format will provide a much better incentive for national governments to improve transparency, disclose information and data needed by stakeholders to better understand the sector, and to make informed and effective decisions based on data and policy analysis. When the Index evaluates and compares several countries, a competitive spirit immediately emerges that motivates them to be better. And where there is healthy competition, there is less and less room for corruption.
We are grateful to all our partners and donors, in particular, USAID, the Renaissance Foundation and the Eastern Partnership Civil Society Forum for their comprehensive support of our ideas and activities in the field of anti-corruption. We sincerely believe that increasing the transparency of the energy sector and developing open and competitive markets are the most effective weapons against corruption!