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Supporting energy sector reform in Ukraine

 

The project Supporting the Energy Sector Reform in Ukraine aims to help the Ukrainian authorities implement reforms in the country’s energy sector and promote its efficiency for increasing its attractiveness, competitiveness and development. The project focuses on competition, investment, responsible business conduct, anti-corruption and corporate governance of state-owned enterprises (SOEs) in the energy sector.

The Project Supporting the Energy Sector Reform in Ukraine is carried out in the context of the OECD-Ukraine Action Plan, the project encompasses a mix of analytical and capacity-building activities to ensure relevance and support to Ukrainian institutions in reforming the energy sector. The project will run from January 2019 until December 2021. It is implemented with the financial support of the Government of Norway.

What's the issue?

Despite important reforms implemented to date by Ukraine, a great deal remains to be done to underpin and ensure an effective energy sector reform. Ukraine faces major challenges in improving energy efficiency. The energy sector represents 12.6% of the country’s GDP, yet issues regarding governance, pricing policy, bid-rigging, management and security of energy assets have continued to pose barriers to its development.

The OECD is assisting Ukraine advance towards its energy goals domestically and fulfil commitments made to the EU by providing analysis, policy recommendations and capacity-building activities to enhance energy sector reform.

  Tor Martin Møller

Mr. Andreas Schaal, Director of OECD Global Relations and Mr. Tor Martin Møller, Deputy Director, Section for Russia, Eurasia and Regional Cooperation, Norwegian Ministry of Foreign Affairs

 

 

KEY MILESTONES IN 2021

  • SOE sector reform: In 2021, the OECD will carry out an assessment of Ukraine’s position relative to the SOE Guidelines building on earlier Reviews conducted by the OECD on corporate governance reform in the aviation, the hydrocarbons and the electricity sector in Ukraine.
  • Competition in the energy sector: the OECD will finalise the assessment of procurement practices of energy SOEs in Ukraine, looking at Ukrenergo as case study.  The work is benchmarked against the OECD Fighting Bid-Rigging Guidelines.  The report will be launched at an international event in the summer and a series of capacity-building seminars will be organised with Ukrainian stakeholders throughout the year.
  • Investment climate in the energy sector: the OECD will finalise the assessment of the investment climate against the OECD Policy Framework for Investment, focusing on the energy sector.  A report summarising the findings and recommendations will be launched in early spring.  This work builds on previous Investment Policy Reviews of Ukraine.
  • Responsible Business Conduct in the energy sector: the OECD will assess the compliance of Ukraine’s energy companies to the OECD Responsible Business Conduct Guidelines.  A report summarising the findings and recommendations will be launched in early spring.  A series of capacity-building seminars will be organised throughout the year.  
  • Anti-corruption in the energy sector: the OECD will analyse the measures put in place to tackle corruption in the energy sector and provide recommendations to close corruption loopholes.  The Anti-Corruption Review of Ukraine will be finalised at the autumn session of the OECD Istanbul Anti-Corruption Plan.  A report describing the types of corruption schemes in the energy sector will also be prepared and shared with the government for action. A series of capacity-building seminars to implement OECD recommendations will take place throughout the year.

past events

 

 

kick- off of the OECD Antimonipoly.

 

 

 

Kick-off of the OECD Anti-Corruption Review of the Energy Sector  in   Ukraine

28 May 2021, 9:00 -10:30 (Paris time) for more information: click here

This event will provide a platform to kick off the work on the Anti-Corruption Review of the Energy Sector in Ukraine. It aims at harnessing strong political support and involvement of key governmental and non-governmental stakeholders, including the National Corruption Prevention Agency (NACP), the Ministry of Energy, Ministry of Finance, Ministry of Economic Development and Trade, and other public bodies and SOEs within Ukrainian energy sector, as well as of the anti-corruption law enforcement bodies, civil society, international community and business associations. 

 Image launch anti- corruption

Стартовий захід Антикорупційного огляду сектору енергетики в Україні

28 травня 2021, 10:00 – 11.30 (за київським часом), більше інформації за посиланням

Захід створить платформу для початку роботи над Антикорупційним оглядом енергетичного сектору в Україні. Цей захід спрямований на залучення потужної політичної підтримки від ключових державних органів влади та неурядових зацікавлених сторін а саме: Національного агентства з питань запобігання корупції (НАЗК), Міністерства енергетики, Міністерства фінансів, Міністерства розвитку економіки, торгівлі та сільського господарства України, державних підприємств, а також антикорупційних та правоохоронних органів, громадянського суспільства, міжнародного співтовариства та бізнес-асоціацій.

Publication from DAF

Publication Launch Event: Fighting Bid Rigging in the Energy Sector in Ukraine:A Review of Ukrenergo

Tuesday, 15 June 2021, 9:30 – 12:00 (Paris time), 10:30 – 13:00 (Kyiv time)

 Please register here /Please find agenda here

This online event will provide a platform to discuss the main findings, assessment and issues arising from the OECD review of procurement in Ukraine’s energy sector, looking at Ukrenergo as a case study. Representatives of OECD and Ukraine will present the conclusions and recommendations of the OECD review Fighting Bid Rigging in the Energy Sector in Ukraine: A Review of Ukrenergo, and provide suggestions to improve competition practices going forward. This event marks the completion of the OECD review, and introduces the next phase of this work, which entails a series of workshops organised for procurement officials from Ukrenergo, the Anti-Monopoly Committee of Ukraine, representatives from SOEs and the Government of Ukraine. This event marks the completion of the OECD review, and introduces the next phase of this work, which entails a series of workshops organised for procurement officials from Ukrenergo, the Anti-Monopoly Committee of Ukraine, representatives from SOEs and the Government of Ukraine.

 fighting-bid-rigging-in-the-energy-sector-in-Ukraine-2021

Презентація публікації - «Боротьба зі змовою на торгах при здійсненні державних закупівель у секторі енергетики України: огляд НЕК «Укренерго»

Вівторок, 15 червня 2021 року, 09:30–12:00 (за паризьким часом), 10:30–13:00 (за київським часом)

Щоб зареєструватися, скористайтеся посиланням /проєкт порядку денного за посиланням

Цей онлайн захід стане платформою для обговорення основних висновків, результатів оцінювання та проблем, виявлених під час огляду публічних закупівель у енергетичному секторі України, проведеного ОЕСР на прикладі НЕК «Укренерго». Представники ОЕСР і України представлять висновки та рекомендації огляду ОЕСР «Боротьба зі змовою на торгах при здійсненні державних закупівель у секторі енергетики України: огляд НЕК «Укренерго», а також розкажуть про прогрес у вдосконаленні конкурентних практик. Цей захід знаменує собою завершення огляду ОЕСР і початок нового етапу роботи, що передбачає проведення низки семінарів, організованих для посадових осіб із питань публічних закупівель НЕК «Укренерго», Антимонопольного комітету України, представників ДП і Уряду України.

 Responsable Business Conduct due dilligente practices in Ukraine's Energy sector

Promoting Responsible Business Conduct in Ukraine’s Energy Sector

June 23, 2021, 10:00 a.m. CEST/11:00 a.m. EEST

This online event will provide a platform to discuss the main findings, assessment and issues arising from the OECD Study on Responsible Business Conduct Due Diligence Practices in Ukraine’s Energy Sector. The study

has been carried out by the OECD Centre for Responsible Business Conduct (RBC Centre) in the context of the project Supporting Energy Sector Reform in Ukraine.

The meeting is an invitation-only event. Participants will include key energy practitioners that were surveyed, as well as other governmental and non-governmental Ukrainian stakeholders.

For more information including the report and key findingsclick here

 Responsable Business conduct due Dilligente Practices in Ukraine's Energy sector UA

Сприяння відповідальному веденню бізнесу в енергетичному секторі України

23 червня 2021 року 10.00 (за Парижем)/ 11.00 (за Києвом)

Цей онлайн-захід стане платформою для обговорення основних висновків, результатів оцінювання та проблем, виявлених у ході дослідження ОЕСР «Належні перевірки у практиці відповідального ведення бізнесу в енергетичному секторі України». Дослідження було проведене Центром ОЕСР з відповідального ведення бізнесу (Центр з ВВБ) в рамках проєкту «Підтримка реформи сектору енергетики в України». Ця зустріч є заходом закритого типу. Серед учасників будуть основні енергетичні компанії-респонденти, а також інші урядові та неурядові зацікавлені сторони з української сторони.

Більше інформації включаючи звіт та ключові висновки за посиланням

 This review evaluates corporate governance framework of the Ukrainian state-owned enterprise sector relative to the OECD Guidelines on Corporate Governance of State-Owned Enterprises (the “SOE Guidelines”).

Roundtable Discussion:Corporate Governance of SOEs in Ukraine: A Review of Ukraine’s position against the OECD SOE Guidelines

Thursday,24 June 2021, 10:00-12:30(Paris Time)(TBC), 11:00-13:30(kyiv Time) 

Please REGISTER HERE/ Please find agenda HERE

The virtual roundtable will serve as a platform to discuss the results and recommendations stemming from the OECD Review of the Corporate Governance of State-Owned Enterprises in Ukraine. The event marks the finalisation of the Review of Ukraine’s state-owned enterprise sector relative to the OECD SOE Guidelines, carried out with the support of the Norwegian Ministry of Foreign Affairs. Findings of the Review will be presented and deliberated among a panel of distinguished discussants representing key governmental and non-governmental stakeholders, and international partners. The aim will be to identify steps in advancing Ukraine’s reform efforts in line with international standards.

 Corporate Governance of SOEs in Ukraine: A Review of Ukraine’s position against the OECD SOE Guidelines

Дискусія за круглим столом: Корпоративне управління державних підприємств (ДП) в Україні: огляд позиції України щодо Керівних принципів ОЕСР

Дата: четвер, 24 червня 2021 року

10:00-12:30(за паризьким часом)(TBC), 11:00-13:30(за київським часом) 

Щоб зареєструватися,скористайтеся посиланням /проєкт порядку денного за посиланням

Віртуальний круглий стіл послужить платформою для обговорення результатів та рекомендацій, що походять від Огляду ОЕСР корпоративного управління державних підприємств в Україні. Ця подія ознаменує завершення Огляду сектору державних підприємств України щодо Керівних принципів ОЕСР, проведено за підтримки Міністерства закордонних справ Норвегії. Результати огляду будуть представлені та обговорені серед групи видатних учасників дискусії, які представляють ключові державні та неурядові зацікавлені сторони та міжнародних партнерів. Основною метою буде визначити кроки щодо просування зусиль України щодо реформ відповідно до міжнародних стандартів.

 

 Key publications and resources on energy reform in ukraine

Publication from DAF

 

Fighting bid rigging in public procurement in the energy sector in Ukraine - OECD (2021)

Боротьба зі змовою на торгах в енергетичному секторі в Україні

Public procurement plays a strategic role in a country’s economy, and the quality of services that the government provides to its citizens. OECD countries spend on average 12% of their GDPin the procurement of goods, services and works.

Due to the size of the involved financial flows, public procurement is exposed to risks of collusion among suppliers as well as fraud and corruption. In Ukraine, bid rigging is an administrative offence and has long been an enforcement priority for the Ukrainian Competition Authority, AMCU. Against this background, and in the context of the OECD project Supporting the Energy Sector Reform in Ukraine, with the financial support of the Government of Norway, the OECD assessed the procurement practices of Ukrenergo, the Ukrainian energy state-owned enterprise and national-grid operator, against the Recommendation on Fighting Bid Rigging in Public Procurement.  

This review evaluates corporate governance framework of the Ukrainian state-owned enterprise sector relative to the OECD Guidelines on Corporate Governance of State-Owned Enterprises (the “SOE Guidelines”).

OECD Review of the Corporate Governance of State-Owned Enterprises in Ukraine (2021)

This review evaluates corporate governance framework of the Ukrainian state-owned enterprise sector relative to the OECD Guidelines on Corporate Governance of State-Owned Enterprises (the “SOE Guidelines”). It was requested by Ukraine’s Ministry for the Development of Economy, Trade and Agriculture under the authority of the Prime Minister of Ukraine. The review received financial support from the Norwegian Ministry of Foreign Affairs. The work was implemented in the context of the Memorandum of Understanding for Strengthening Co-operation between the OECD and the Government of Ukraine

 

State-Owned Enterprise Reform in the Electricity Sector in Ukraine (2020)
Реформа підприємств державної форми власності у секторі електроенергетики України (2020)

While important progress has been made in recent years – both at the company and state level – most corporate governance reforms remain nascent and fragile. To realise long-term and sustainable impact, reforms should be anchored in more robust legislative and policy frameworks, which would also help to avoid ad hoc changes subject to undue political interference. Furthermore, in order to be truly effective, these reforms need to be combined with improvements in the design and functioning of the newly launched electricity market. To address these challenges, the OECD Review identifies a set of 19 detailed recommendations that draw on the OECD SOE Guidelines as a point of departure and serve as a roadmap for reform going forward.

Monitoring of the Energy Strategy of Ukraine 2035

Monitoring the Energy Strategy of Ukraine 2035 (2020)
МОНІТОРИНГ РЕАЛІЗАЦІЇ ЕНЕРГЕТИЧНОЇ СТРАТЕГІЇ УКРАЇНИ НА ПЕРІОД ДО 2035 р (2020)

In 2017, the government adopted the Energy Strategy of Ukraine until 2035 (ESU 2035) as part of its efforts to promote a more systematic and holistic approach to energy sector reform.  In December 2019, a presidential decree tasked the Cabinet of Ministers with revising the current strategy. By providing an assessment and recommendations on the implementation framework of the ESU 2035, this OECD report aims to provide a benchmark to support this work, while assessing the progress that has been made towards energy strategy goals.

 

 Snapshot of Ukraine’s Energy Sector: Institutions, Governance and Policy Framework (2019)  

Snapshot of Ukraine’s Energy Sector: Institutions, Governance and Policy Framework (2019) 
Огляд енергетичного сектору України:інституції, управління та політичні засади (2019)

This report provides an overview of Ukraine’s energy sector. It presents the structure of the sector, identifying the main state and corporate actors, and clarifying roles and responsibilities, as well as reporting mechanisms. It also elucidates the relationships among actors, including government bodies, regulators, state-owned enterprises and other stakeholders. It looks at the mechanisms in place for licencing and for monitoring the energy strategy.

Eurasia-cover-SOE Reform in the Hydrocarbons Sector in Ukraine-2019

State-Owned Enterprise Reform in the Hydrocarbons Sector in Ukraine (2019)
Реформування підприємств державної форми власності в секторі вуглеводнів в Україні (2019)

This publication is the first important output of the energy sector reform project. It provides a review of SOE Reform in the Hydrocarbons sector in Ukraine, looking at the Corporate Governance of Naftogaz as a case study, and puts forward 16 detailed recommendations in line with the OECD Guidelines on Corporate Governance of SOEs (2015).

 

 Enhancing Competitiveness in Ukraine through a Sustainable Framework for Energy Service Companies (ESCOs)

Enhancing Competitiveness in Ukraine through a Sustainable Framework for Energy Service Companies (ESCOs) (2019) 
Підвищення конкурентоспроможності в Україні шляхом створення сталого законодавчого підґрунтя для роботи енергосервісних компаній (2019)

This report assesses the progress made by Ukraine in the implementation of the 2015 OECD recommendations for developing a sustainable energy savings market with ESCOs in Ukraine. 
 

  Access the International Energy Agency's online Ukraine Energy Service Companies profile 

 

OECD standards & benchmarking

Some of the activities are benchmarked against specific OECD standards, namely:

Working with OECD committees & working parties

Project findings will be presented to OECD committees and working parties for peer review discussion and monitoring of results. Participating committees and working parties include:

This work could potentially lead to the invitation of Ukraine to align, and eventually adhere, to some OECD instruments and bodies as appropriate. 

Contact us

For more information about the work on Ukraine, please contact:
Ms. Gabriela Miranda, Country Manager for Ukraine
gabriela.miranda@oecd.org

 EUR logo Norway

 

The OECD Review "State-Owned Enterprise Reform in the Electricity Sector in Ukraine" will be launched at a webinar on 22 June 2020, involving a broad range of government and non-governmental stakeholders and will serve as a kick-off for a country review of Ukraine against the OECD Guidelines on Corporate Governance of State-owned Enterprises to be conducted in 2020-2021, as per Ukraine’s request to become adherent.

For more details, contact the OECD Corporate Governance and Corporate Finance Secretariat

 

 

Download the key policy insights note in English

Завантажити короткий підсумок проекту ОЕСР Підтримка реформ енергетичного сектору в Україні тут (українською)

 

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