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III CEE Energy Policy Forum

III CEE Energy Policy Forum Challenges and opportunities of the EU- Ukrainian gas market integration. Ukraine Gas Infrastructure as a part of European market & Association Agreement. Budapest, May 30-31 th 2018. Igor Stukalenko associate expert CGS Strategy XXI. …. Lets be clear:

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III CEE Energy Policy Forum

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  1. III CEE Energy Policy Forum Challenges and opportunities of the EU- Ukrainian gas market integration Ukraine Gas Infrastructure as a part of European market & Association Agreement Budapest, May 30-31th 2018 Igor Stukalenko associate expert CGS Strategy XXI

  2. …. Lets be clear: it is in Europe strategic interest to keep the gas coming through this (Ukraine)route. Any other solution is economically less interesting Source: Energy Commissioners opening speech at the International Investment Conference on the Rehabilitation of Ukraine Gas Transit Network. Brussels, 23 March 2009 CGS Strategy XXI, Budapest, May 30-31th 2018

  3. “The external size of the internal gas networks market don’t stop at the EU borders” • Ukrainian powerful corridors should be • made full use of. • AA makes Ukraine as an important and integral part of the European gas market. CGS “Strategy XXI”, Budapest, May 30-31th 2018

  4. EU – Ukraine Association Agreement • entered into force on 1 September 2017!!! • Energy provisions of the Agreement: • trade related energy - chapter 11 (title IV) • Energy cooperation- chapter 1 (title V) • EWM - annex XXVI (title IV) • Legislation of EU - annex XXVII (title V) CGS “Strategy XXI”, Budapest, May 30-31th 2018

  5. Article 274 requires to coordinate actions and cooperate on usage and development of the infrastructure Some problems with implementing these requirements exist. CGS “Strategy XXI”, Budapest, May 30-31th 2018

  6. TITLE V. ECONOMIC AND SECTOR COOPERATION. CHAPTER 1. ENERGY COOPERATION ARTICLE 338 Mutual cooperation shall cover, among others, the following areas: (a) implementation of energy strategies and policies and development/elaboration of forecasts and scenarios, ….., as well as infrastructure developments; (b) establishing effective mechanisms to address potential energy crisis situations in a spirit of solidarity; CGS “Strategy XXI”, Budapest, May 30-31th 2018

  7. Early Warning Mechanism (ANNEX XXVI to Chapter 1 ENERGY COOPERATION) • Early assessment of potential risks • Definite coordinators • Consultation procedure • Monitoring group • Ability to invite to the third party Emergency – disruption of the gas supply between Ukraine and EU NS2 is an emergency in accordance with AA CGS “Strategy XXI”, Budapest, May 30-31th 2018

  8. Institutional framework of AA Summit meetings Association Council (AC)- may update the annexes , create sub-committee Association committee –assists the AC Sub-committees – (There is no gas subcommittee yet!) Parliamentary Association Committee- make recommendations to the AC Civil Society Platform (CS on the Ukrainianand ESC) – make recommendations to the AC CGS “Strategy XXI”, Budapest, May 30-31th 2018

  9. Gas supply from the EU to Ukraine was a good example of a neighborly cooperation and solidarity in the difficult period. • To summarize: • Ukraine-EU AA is a possibility of cooperation that isn’t used enough • A special committee in the area of gas infrastructure usage under the AA should be created • The threats which NS2 creates should be treated as very serious and this calls for putting in place EWM according to the AA CGS “Strategy XXI”, Budapest, May 30-31th 2018

  10. Thank You! Igor Stukalenko, Centre for Global Studies STRATEGY XXI https://geostrategy.org.ua/ IStukalenko@gmail.com Budapest, May 30-31th 2018

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