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The Cabinet approved signing of the Agreement with the European Union on funding of the program of “Continued support for the implementation of Ukraine’s Energy Strategy.”
As explained by experts from the Ministry of Economic Development and Trade, the purpose of the Agreement is assisting Ukraine in execution of the program for effective implementation of the energy sector development strategy, financial strengthening in the sector, and ensuring environmental protection, the Information-Analytical Bulletin of the Cabinet of Ministers of Ukraine reports.
Assistance provided by the European Union for the program will total 45 million EUR.
Experts of the energy market stress the importance for the Ukrainian economy of continued reforms in the energy sector. These reforms are envisioned by the obligations of Ukraine under the Energy Community Treaty.
Experts remind that the government has done a considerable amount of work in recent years to meet Ukraine’s obligations in the framework of the EU Second and Third Energy Packages.
The Laws of Ukraine “On principles of natural gas market functioning” and “On principles of electricity market functioning in Ukraine" have been passed and will come in full force from the beginning of 2015. Implementation of these laws, according to experts, will split the functions of the producer (wholesaler), supplier and sale of gas and electricity to final consumers. Experts stress that it will result in de-monopolization of the gas and electricity markets of Ukraine. And the competition on those markets will help keep account of the consumed energy and to significant raise the energy efficiency of the economy.