Ukraine is now at the crossroads between regulated and market energy sector. This applies to both the electricity market and the gas market. According to Ukraine’s Prime Minister Denys Shmyhal, the country is moving towards the formation of full-fledged market relations.
“This is our path to the European Union, the introduction of fair tariffs and transparent rules of the game in the energy sector,” said the Prime Minister, during a round table discussion on the National Economic Strategy 2030.
During the round table, priority vectors of energy development, plans for the implementation of the European Green Deal initiative in Ukraine, as well as comprehensive solutions on subsoil use reform were presented. According to Mr Shmyhal, the Government aims at several strategic tasks to be implemented in the coming years. In particular, those are an increase in domestic gas production, which is a crucial project within the framework of the national security of Ukraine.
“At the end of last year and the beginning of 2021, 8 production sharing agreements have been signed,” the Prime Minister continued. “These deals are a message to the market and the investors in which direction we are moving. Thanks to these agreements, Ukraine can grow gas production by hundreds of millions of cubic meters, as well as receive more than 10 billion hryvnias [300 million euros] in investments in the industry. The Government also granted Naftogaz the right to explore and develop the Yuzivska gas-bearing area, as well as the Black Sea shelf. Therefore, we enforce our strategic goal of increasing our own production by taking concrete steps.”
Mr Shmyhal named the integration of Ukraine’s energy sector with the European energy system as another priority for the Government team. First of all, it concerns the integration of the United Energy System of Ukraine into the ENTSO-E (the European Network of Transmission System Operators), which is to take place in 2023.
“We have already begun to pass the relevant tests and in 2022 the technical aspects of the integration of Ukraine’s energy system with the European one should be completed,” he announced. “This means that in 2023 Ukraine will be a few steps closer to the EU. In addition, the implementation of the Green Course remains a priority in our cooperation with European partners. This is the basis of Ukraine’s environmental policy and concern for the future of our country.”