Energy policy of Ukraine:international dimension

results of the year 2015

Key achievements: depoliticization of gas issue

The russian gas purchase price is fair

Solution of gas disputes transformed from format "Ukraine-Russia" to format "Ukraine-Russia-EU"

Increased transparency of gas sphere in the triangle "EU-Ukraine-Russia"

337 $/ TCM

227$/TCM

І quarter 2015 IV quarter 2015

Key achievements:diversification of energy supply

The volume of reverse gas supply increased

Treaty of the Interconnector with FGSZ (Hungary) was signed

Ensured supply of nuclear fuel from "Westinghouse" (USA)

Deficit anthracite coal comes from 3 different sources: from ATO area, the Russian Federation and the Republic of South Africa

2014 р. 2015 р.

4 billion m³ 10 billion m³

Key achievements: implementation of EU legislation

Plans of implementation of some legislative acts of the EU in the energy sector approved by the Government

Law "On natural gas market" and relevant secondary legislation were developed and adopted

Gas sector reform plan was approved by the Government The text of the draft law "On electricity market" was finalized

First report on The Extractive Industries Transparency Initiative (EITI) standard

was released

Bilateral contacts: the language of statistic

16 4344

25

49309

Ministers - 16

Ambassadors - 43

Foreign companies - 44

International financial organizations - 25

International organozations - 49

Working meetings - 309

Total number of meetings – 486

Minister of Energy and Coal Industry of Ukraine

Volodymyr Demchyshyn

US Special Envoy Amos Hochstein

US Secretary of Energy Ernest Moniz

Minister of Industry and Trade of Czech Republic

Jan Mladek

Minister of Economic Affairs of the Netherlands

Henk Kamp

Minister of Foreign Affairs of DenmarkMartin Lidegaard

Deputy Prime Minister of GeorgiaKakha Kaladze

Vice-President of EC Maroš Šefčovič

Intensification of bilateral contacts

Minister of Energy of Romania

Andrei Gerea

EU Commissioner Miguel Arias Cañete

Minister of Ecology, Sustainable Development

and Energy of FranceSégolène Royal

Minister of Energy of BulgariaTemenuzhka PetkovaMinister of Economy

of the Slovak RepublicVazil Hudák

Minister of Energyof the Republic of

LithuaniaRokas Masiulis

Participation in key foreign events

СERAWeek, Houston – participation at special energy panel

International conference (the Hague II) in the Hague – final document of the International Energy Charter was signed

59-th session of General Conference of IAEA, Vienna

13-th Ministerial Council of the Energy Community meeting, Tirana

7-th annual Atlantic Council Energy and Economic Summit, Istanbul

Participation in energy events:new energy networking

• G7 Seminar “Energy security and Ukraine’s energy sector challenges”, Berlin

• XXVI International gas conference, Paris

• 10-th anniversary of Energy Community Treaty, Vienna

• International Conference on extraction of minerals and energy sources, Melbourne

• 26-th session of Energy Charter Conference, Tbilisi

• 10-th annual Ukraine Investment Summit, London

Participation in thematic events in Ukraine:support of dialog with partners

• International Conference for reforms support in Ukraine

• International Conference «Ukrainian energy infrastructure and legislation»

• First and second Ukrainian-Japanese Seminars on energy security

• ХІІІ International Forum «Fuel and Energy complex of Ukraine: the present and the future»

• 6-th Ukraine-EU energy day

Deeping cooperation with IFIs: from money to real projects

A loan agreement for modernization of pipeline Urengoy-Pomary-Uzhgorod was signed – €300 million

Credit for projects of reconstruction and modernization of the eastern regions infrastructure of Ukraine (on energy– €200 million)

Сredit agreement on clean technology – $378 millionFinancing of the working out of secondary legislation to the Gas market LawGrant for implementation of Extractive Industries Transparency Initiative– $300 thousand for 2015 and $400 thousand for 2016

Credit agreement to finance gas purchases with the EU was signed– $300 million

International support:“yes” to reforms in Ukrainian energy sector

• Declaration of G7 Ministers of Energy of – the existing dynamics in reforming the energy sector of Ukraine was noted

• 17th EU-Ukraine Summit – Joint Declaration – the ongoing reform of tariffs and prices on energy recourses, the adoption of the new Gas market Law, submitting the draft law on Regulator to the Parliament were noted

• Final Declaration of the Riga summit “Eastern Partnership” – the progress achieved by major energy infrastructure projects was recognized

• Ukrainian-American working group on energy security – the progress in reforming of the energy sector of Ukraine was supported

• 13th Ministerial Council meeting of the Energy Community - Ukraine recognized as participating country, which has achieved the greatest success in implementing the rules of the Third Energy Package in 2015

Cooperation with the Energy Community: new page in relations

The Law “On natural gas market” was drafted and adopted

A “road map” on secondary legislation to the law “On natural gas market” was adopted

The work on the draft Law “On electricity market” was finished, the “road map” on secondary legislation to the law was prepared and agreed, the work on its development was started

The text of the draft law "On National energy regulator" was finalized

The application of the requirements on emissions into the atmosphere (EU Directive 2010/75) was postponed

Cooperation with the Energy Community: new obligations in the energy sector

• EU Directive 2012/27 on energy efficiency

• Regulation (EU) №347 / 2010 on energy infrastructure

• Regulation (EU) №431/2014 for amending Regulation №1099 / 2008 on energy statistics

Cooperation with EU:support and dialogue

Ministry intensified the process of implementation of the Third Energy Package

Joint report on the cooperation in the energy sector in 2014 was signed

Meeting of Cluster №3 on energy, environment, transport and climate action issues was held

The "Energy Bridge" project, aimed to develop interstate electricity network infrastructure was presented

Cooperation with Japan: an access to new eastern horizons

Cooperation with NEDO on "Demonstration project for replacement of the steam turbine" on Trypilska TPP

Technical audit of Trypilska TPP and Burshtynska TPP (JCOAL) were conducted and respective reports were presented

Master Plan (strategy of Ukraine’s energy development) with IEEJ was developed

First and second Ukrainian-Japanese seminar on energy security were heldJICA mission to select the potential energy projects was started

New initiatives: from words to actions

Negotiations process with the EU on a new text of the Memorandum of understanding in the energy sector was launched

The Work on development of the energy diplomacy Strategy was started

The Mechanism of rapid response to problems related to the activities of investors in the energy sector was introduced

The list of participants was updated and the first meeting of the Multilateral Working Group on monitoring of efficiency of the commitments under the Energy Community was held

The candidature from Ministry for the post of Deputy Chairman of the Working Group of the Energy Charter on Trade and the Transit was nominated and supported

The new area of responsibility: from vertical tasks to horizontal initiatives

To develop a new law "On electricity market" and corresponding secondarylegislation

To develop the reform plan of the oil and gas sector

To develop the model of restructuring of gas sector, including NJSC "Naftogazof Ukraine"

To implement the Mechanism of rapid response to problems related to theactivities of investors

Status of tasks fulfillment in 2015

Continue a contract on gas supply from Russia within so called "winter package"

Development and adoption of the secondary legislation to the Law "On natural gas market"

The adoption of the new Law "On electricity market"

To sign agreements on interconnectors between EU operators and Ukraine

To purchase a necessary amount of energy resources for the heating season (gas and coal)

To develop and draft a new Memorandum of Understanding in the energy sector between Ukraine and the EU

To develop a contingency plan for the energy sector of Ukraine

To implement a rapid response mechanism regarding problematic issues that foreign investors may face in the energy sector of UkraineTo conduct a number of bilateral intergovernmental joint commissions (Iran, Norway, Czech Republic)To hold Second Ukraine-Japan energy seminar To participate in the Energy Community Ministerial Meeting

To hold an annual Energy Forum

To create a "diplomatic club" within the Ministry

Status of tasks fulfillment in 2015

Main tasks for 2016:fulfillment of obligations

To adopt the new Law "On electricity market"

Development and adoption of the secondary legislation to the Law "On electricity market"

Strengthen effective coordination between the CGA on the development of positions within the Energy Community

To draft and sign a new Memorandum of Understanding in the energy sector between Ukraine and the EU

To create a "diplomatic club" within the Ministry

To launch initiative on attracting of talented students to work within the Ministry

Main tasks for 2016: facilitate dynamics of bilateral contacts

To conduct a number of bilateral intergovernmental joint commissions (Iran, Norway, Czech Republic)

To sign the agreement between the Government of Ukraine and the Government of Australia on cooperation on nuclear energy for peaceful purposes usage

To continue cooperation with JICA on possible investment projects

To finalize institutional and legislative work regarding Demonstration Project realization on replacement of steam turbine on Trypilska TPP (NEDO)

Main tasks for 2016 :from "firefighting" to strategic planning

To work out the concept and strategy of the development of the energy sector

To work out and to present strategy of energy diplomacy

To adopt the Government decision regarding the National Plan on emission reductions from large combustion plants

To adopt the model of restructuring of the oil and gas sector and together with NJSC "Naftogaz of Ukraine“ restructuring

To approve the Plan on the Development United Energy System of Ukraine

To review the approaches of cooperation with donors

Publicity and cooperation with the public:from offices to accounts

- 17 interviews were given in 2015 - 246 posts posts were made on Facebook and 636 posts

on Twitter

Our team 2015

Viktoria RUZHENKOVA

KostyantinKRAPIVIN

OlenaIVANOVA

AnastasiyaIVLIYEVA

OksanaBONDARCHUK

IevgenLYTVYNENKO

OksanaPOPLAVSKA

InessaGREBENYOK

MykhailoBNO-AIRIIAN

InnaSHCHERBAN

Andriy GRYSHCHENKO

Our team 2016

New tasks: •Strategic planning of Fuel and Energy Sector development and implementation of investment projects•Cooperation with international financial organizations•Coordination of research and environmental protection, metrology, certification and accreditation activities•The application of energy efficient technologies and the widespread use of alternative energy sources

THANK YOU FOR ATTENTION!

Ministry of Energy and Coal Industry of UkraineDepartment of Strategic Planning and European Integration

Kyiv 2015