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Analysis of the Official U.S. Position on the Support of Ukraine’s Energy Security

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Analysis of the Official U.S. Position
on the Support of Ukraine’s Energy Security

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Analysis of the Official U.S. Position on the Support of Ukraine’s Energy Security

  1. 1. Analysis of the Official U.S. Position on the Support of Ukraine’s Energy Security Sergey Logvin, Sagatom Saha 1) to SUPPORT the Government of Ukraine in restoring its sovereign and territorial integrity; 2) to CONDEMN and OPPOSE all of the destabilizing efforts by the Government of the Russian Federation in Ukraine in violation of its obligations and international commitments; 3) to NEVER RECOGNIZE the illegal annexation of Crimea by the Government of the Russian Federation or the separation of any portion of Ukrainian territory through the use of military force; 4) to DETER the Government of the Russian Federation from further destabilizing and invading Ukraine and other independent countries in Central and Eastern Europe and the Caucuses; 5) to ASSIST IN PROMOTING reform in regulatory oversight and operations in Ukraine›s energy sector, including the establishment and empowerment of an independent regulatory organization; 6) to ENCOURAGE and SUPPORT fair competition, market liberalization, and reliability in Ukraine›s energy sector; 7) to HELP Ukraine and United States allies and partners in Europe reduce their dependence on Russian energy resources, especially natural gas, which the Government of the Russian Federation uses as a weapon to coerce, intimidate, and influence other countries; 8) to work with European Union member states and European Union institutions to PROMOTE energy security through developing diversified and liberalized energy markets that provide diversified sources, suppliers, and routes; 9) to CONTINUE TO OPPOSE the Nord Stream 2 pipeline given its detrimental impacts on the European Union›s energy security, gas market development in Central and Eastern Europe, and energy reforms in Ukraine; and 10) the United States Government should PRIORITIZE the export of United States energy resources in order to create American jobs, help United States allies and partners, and strengthen United States foreign policy. 1) The U.S. considers that Russia uses its position in the energy markets to manipulate internal politics of other countries. 2) The Export-Import Bank of the United States and Overseas Private Investment Corporation should play key roles in financial support of critical energy projects that contribute to energy security. 3) 30 mln USD is allocated from the Countering Russian Aggression Fund for 2018 and 2019 to help with the promotion of energy security. 4) Countering Russian Influence in Europe and Eurasia action will be in force 5 years after enactment of the Countering America›s Adversaries Through Sanctions Act. (Act HR 3364 Countering America’s Adversaries Through Sanctions Act, Section 257-259) OFFICIALLY WHY TASKS, ASSIGNEES REPORTING The Secretary of State along with the U.S. Agency for International Development and the Secretary of Energy shall work with the Government of Ukraine to develop a plan to achieve following strategic goals: 1) to increase energy security; 2) to increase amount of energy produced; and 3) to reduce reliance on Russian energy imports. The mentioned strategies include market liberalization, effective regulation and oversight, supply diversification, energy reliability, and energy efficiency. In particular, in the annex we listed activities identified by the U.S. Congress, with the responsible bodies, identified by DiXi Group think tank according to their powers and areas of responsibility. The Secretary of State has 180 days to submit a report on the implementation of the provisions of the Ukraine Freedom Support Act. The report has to include progress, level of funding that has been allocated and expended. Also, the first report should contain information on the implementation of the provisions starting from 2014 and should be submitted no later than January 28, 2018.
  2. 2. ANNEX. Plan to Promote Ukraine’s Energy Security Activity Responsible ministries Other government agencies and institutions State-owned and private companies 1. Promotion of advanced technology and modern operating practices in Ukraine’s oil and gas sector Ministry of Energy and Coal Industry of Ukraine Ministry of Environment and Natural Resources of Ukraine Ministry of Economic Development and Trade of Ukraine State Service for Geology and Mineral Resources of Ukraine Subsoil users (companies engaged in exploration and production) 2. Modern geophysical and meteorological survey work as needed followed by international tenders to attract qualified investment into exploration and development of areas with untapped resources in Ukraine Ministry of Environment and Natural Resources of Ukraine Ministry of Economic Development and Trade of Ukraine State Service for Geology and Mineral Resources of Ukraine Subsoil users (companies engaged in exploration and production) 3. Broadening of Ukraine’s electric power transmission interconnection with Europe Ministry of Energy and Coal Industry of Ukraine NEURC Coordination Center for the introduction of a new electricity market National Power Company “Ukrenergo” as operator of the Integrated Power System of Ukraine 4. Strengthening of Ukraine’s capability to maintain electric power grid stability and reliability Ministry of Energy and Coal Industry of Ukraine NEURC National Power Company “Ukrenergo” as operator of the Integrated Power System of Ukraine, distribution system operators 5. Independent regulatory oversight and operations of Ukraine’s gas market and electricity sector NEURC Antimonopoly Committee of Ukraine 6. Implementation of primary gas law including pricing, tariff structure, and legal regulatory implementation Ministry of Energy and Coal Industry of Ukraine Ministry of Economic Development and Trade of Ukraine NEURC 7. Privatization of government owned energy companies through credible legal frameworks and a transparent process compliant with international best practices Ministry of Economic Development and Trade of Ukraine Ministry of Energy and Coal Industry of Ukraine State Property Fund of Ukraine 8. Procurement and transport of emergency fuel supplies, including reverse pipeline flows from Europe Ministry of Energy and Coal Industry of Ukraine NEURC (in market monitoring) National Joint-Stock Company “Naftogaz of Ukraine” Subsoil companies 9. Provision of technical assistance for crisis planning, crisis response, and public outreach Ministry of Energy and Coal Industry of Ukraine Ministry of Information Policy of Ukraine (in information campaigns) National Security and Defense Council of Ukraine 10. Repair of infrastructure to enable the transport of fuel supplies Ministry of Energy and Coal Industry of Ukraine NEURC (in market monitoring) Public Joint- Stock Company “UKRTRANSGAZ” / “MGU” 11. Repair of power generating or power transmission equipment or facilities Ministry of Energy and Coal Industry of Ukraine NEURC (in market monitoring) National Power Company “Ukrenergo” as operator of the Integrated Power System of Ukraine 12. Improved building energy efficiency and other measures designed to reduce energy demand in Ukraine Ministry for Regional Development, Construction and Housing of Ukraine State Agency of Energy Efficiency and Energy Saving of Ukraine Energy Efficiency Fund

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