Energy & transport international relations

Ukraine is a key transit country for energy resources from Russia to the EU, particularly for gas and, in the future, for oil. A major challenge is the need to guarantee the overall performance, safety and security of the Ukrainian natural gas transit network, and this has been one of the main objectives of the enhanced EU-Ukraine energy co-operation since 2001.

The General Affairs and External Relations Council of 21st February 2005 underlined that, with the appointment of a new Government in Ukraine and its ambitious programme of reforms, the EU was committed to supporting Ukraine at this crucial moment. As part of this, it was decided to enhance co-operation in the energy sector, where the priorities for EU action are:

the development of appropriate conditions for facilitating the creation of an internal Ukrainian gas and electricity market through a reform based on the convergence of the regulatory framework with that of the EU.
the promotion of concrete infrastructure projects of common interest with the aim of enhancing the security of energy supplies of both the Ukraine and of the EU. This should include the safe, transparent and reliable transit of energy resources across the Ukraine.
the implementation of the action plan in the framework of EURATOM in order to improve nuclear safety.
co-operation to effectively address the challenge of improving energy efficiency and energy savings, as well as promoting new and renewable energy.
to enhance the physical safety and security of the energy infrastructure, including energy installations, networks and maritime transportation of energy resources.

In order to progress on these issues, a Memorandum of Understanding on Energy was elaborated between the services of the European Commission and the Ukrainian Ministry of Energy and signed by Commission President Barroso, UK Prime Minister Blair representing the EU Presidency and Ukraine President Yushchenko on the margins of the EU-Ukraine Summit held on 1st December 2005.

This Memorandum of Understanding provides a comprehensive framework for implementing energy co-operation between the EU and Ukraine by establishing roadmaps for key energy sectors, namely nuclear safety, the integration of electricity and gas markets, enhancing the security of energy supplies and the transit of hydrocarbons, and improving the effectiveness, safety and environmental standards in the coal sector. In addition, it is foreseen to develop a roadmap on energy efficiency, renewables and measures to tackle climate change.

On 18th October 2006, the first progress report [ UKR ] on the implementation of the Memorandum of Understanding was signed jointly by Commissioners Piebalgs and Ferrero-Waldner with Ukrainian Energy Minister Boiko ( press release). The EU-Ukraine Summit of 27th October 2006 took note of this report.

On 14 September 2007, the second progress report [ UKR ] on the implementation of the Memorandum of Understanding was signed jointly by Commissioners Piebalgs and Ferrero-Waldner with Ukrainian Energy Minister Boiko. The EU-Ukraine Summit the same day took note of this report.

On 29 August 2008, a third progress report [ UKR ] on the implementation of the Memorandum of Understanding on energy was signed jointly by Commissioners Piebalgs and Ferrero-Waldner with Ukrainian Energy Minister Prodan.
The EU-Ukraine Summit on 9 September 2008 took note of this report.