Where should attention be focused in order to reform Ukraine’s energy sector? What will membership in “Energy Community” bring to Ukraine’s energy sector? What alternatives, if any, exist to Russian gas imports? How can the government liberalize the energy market and bring tariffs in line with the actual cost of generation?
| Policy analysis document prepared for the project “Ukraine’s integration strategy in the European Energy Community” |
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| The purpose of reforming the gas market should be to protect the interests of consumers and providers alike. Ukraine can do this by carrying out the commitments it has taken on in the European Energy Community, especially the requirements of the EU’s Third Energy Package. The structural changes that this initiative requires on the gas market, starting with the unbundling of NAK Naftogaz Ukrainy, will usher in a new level of transparency and competitiveness on this market. |
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Energy is one of the most important and integral components of Ukraine’s economy. At the same time, energy security is one of the weakest links in the country’s national security strategy. |
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As 2010 approaches, the EU is holding its breath and wondering what New Year’s gift Ukraine and Russia will bring—stable natural gas supplies or yet another mid-winter crisis. In fact, the stability of Russian gas supplies through Ukraine is still not guaranteed. It is jeopardized every month now.
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On 8 October, negotiations on Ukraine’s membership in the Energy Community came to an end. Expectations are that the countries that are already members of the Community will support Kyiv at their December summit. However, now is the time to discuss the benefits and drawbacks for Ukraine, as membership will mean serious changes in the country’s energy sector.
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