The document outlines Ukraine's significant energy reforms achieved in 2015 and the need for continued reforms in 2016. Key recommendations include unifying energy prices, developing real energy markets, and ensuring transparency while also seeking Western support to combat corruption linked to Gazprom. The report emphasizes the involvement of proactive government and societal support as conducive to reform success.

1. Securing Ukraine’s
Energy Sector
Anders Åslund
Senior Fellow
Atlantic Council, Washington, DC
April 4, 2016

2. 3 Simple Theses
1. Ukraine carried out its most far-
reaching energy reforms ever in 2015
2. In 2016 Ukraine needs to complete
its energy reforms
3. The West can and should support
Ukraine in its energy reforms

3. Achievements in 2015
 Household prices raised 4 times to 50 of cost
recovery & international prices fell by half
 Most energy subsidies eliminated 7% of GDP!
 Social cash compensation to 4.3 mn households,
social equity
 Gas consumption fell by 20% in 2015, same in
2016?
 Sharply reduced gas purchases from Russia to
6.1 bcm, while 10.3 bcm from EU

4. Reform Priorities for
Ukrainian government 2016
1. Unify energy prices!
2. Develop real energy markets!
3. Establish independent energy regulator!
4. Ensure full transparency!
5. Make taxation & regulation of
independent producers reasonable!

5. Reform Priorities for
Ukrainian government 2016
6. Break up Naftogaz!
7. Continue to improve corporate
governance!
8. Stop buying gas from Russia!
9. Make gas transit from Russia orderly!
10. End the 2009 gas contract with Russia!

6. Recommendations for West
1. Free Ukraine from Gazprom’s corrupt acts!
2. Facilitate orderly gas transit through Ukraine!
3. Pursue EU competition policy against
Gazprom!
4. Investigate Gazprom as a criminal
organization!
5. Implement EU 3rd energy package!
6. Support Ukraine internationally!

7. Politically Possible
Energy oligarchs are down & out
Naftogaz managers drive reform
Strong government support
Sufficient parliamentary support
Extraordinary transparency
Society understands
West is engaged