On Monday (14 August), Ukraine’s Deputy Energy Minister Yaroslav Demchenkov took part in working group consultations on Ukraine’s plan for the implementation of the European Commission’s “Ukraine Facility” financing instrument.
In June, the European Commission proposed a dedicated financing instrument (known as “Facility”) for Ukraine’s recovery and reconstruction between 2024-2027, providing up to 50 billion euros of financing throughout this four-year period.
The initial discussions on the energy working group focused on the development of the electricity, oil and gas markets. Representatives from businesses, industry associations, government officials, and analytical centres participated in the group’s work, with the Kyiv School of Economics providing analytical and consulting support to the working groups.
“We are devising a sectoral plan with an understanding of Ukraine’s prospects for EU accession. Our goal is to achieve carbon neutrality in the electricity sector by 2050 through the increased share of green generation, the development of nuclear energy, and the implementation of energy efficiency measures. The Euro-integration of energy markets is a prerequisite for achieving energy system stability, enhancing its resilience, and ensuring sustainability,” said Yaroslav Demchenkov in his opening statement.
During the working group sessions, Deputy Minister Demchenkov and representatives from KPMG delved into the details of Ukraine’s 2050 energy strategy, presented by Energy Minister German Galushchenko at a Ukraine Recovery Conference in June, and outlined their vision of the sector’s development, modelling and plans for market integration, as well as regulatory and legislative changes.
“The war and Russia’s behaviour have changed the political landscape and architecture of energy markets. Turbulence in natural gas markets and uncertainty about reliable supply sources in the coming years compel us to reconsider investment decisions in the oil and gas complex,” said Deputy Minister Demchenkov.
“We must expand opportunities for natural gas extraction, storage and supply, while also supporting measures to reduce emissions in the oil and gas sector. This includes promoting the development of renewable gases, hydrogen extraction, storage, and transportation, as well as biomethane. Gas will play its role as a transitional fuel and a source of flexibility for the growing renewable energy generation,” the Deputy Minister added.