Europese Commissie en internationaal monetaire instellingen sluiten akkoord met Oekraïne over hervorming gassector (en)

IP/09/1218

Brussels, 31 July 2009

Commission and International Financial Institutions reach agreement with Ukraine on reform of the Ukrainian gas sector

Commission President, José Manuel Barroso i said: 'I'm extremely pleased that political agreement has been reached with Ukraine on reform of its gas sector which opens the way for a financial assistance package to be provided by the International Financial Institutions to Ukraine. The agreement should provide the stability needed to significantly reduce the risk of a further gas crisis between Ukraine and Russia and therefore provide the security of supply that Member States and our consumers expect.

The commitments made by Ukrainian Prime Minister Tymoshenko should ensure increased transparency and long-term viability of Ukraine's gas sector, and I very much hope that the strict timeframes set out in the reform agenda are fully respected.

I would like to thank the International Financial Institutions for their commitment and flexibility in finding a solution to the structural issues facing Ukraine. This is an extraordinary display of collective effort. The European Commission will continue to support reform of the energy sector in Ukraine building on the achievements of the Joint EU-Ukraine International Investment Conference on the modernisation of Ukraine's gas transit system, the Joint Memorandum of Understanding on Energy and the negotiations on Ukraine's accession to the Energy Community Treaty.

I believe this agreement should help Ukraine become a more reliable energy partner for the benefit of both the European Union and Ukraine's own people.'

Background:

JOINT STATEMENT OF INTENT REGARDING SUPPORT TO GAS SECTOR REFORM IN UKRAINE AND THE PURCHASE OF GAS FROM RUSSIA

Considering Ukraine’s intention gradually to integrate into the single energy market of the European Union, in particular via membership of the Energy Community and progress in implementing the Memorandum of Understanding on Energy signed in December 2005, and the EU’s readiness to support this;

Considering the undertakings for reform contained in the Joint Declaration agreed at the Joint EU-Ukraine International Investment Conference on the Modernization of Ukraine’s Gas Transit System of 23 March 2009 as well as commitments related to the EU-Ukraine Association Agreement;

Considering the undertakings made by Ukraine in respect of the International Monetary Fund in the context of the IMF’s Standby Loan arrangement with Ukraine;

Given that the European Commission is giving consideration to a large macro-financial assistance programme for Ukraine intended to contribute to covering Ukraine’s external financing needs and supporting the authorities’ economic stabilization and reform programme, and in particular the reform of the social safety net;

Considering the conclusions of the European Council of 18/19 June 2009 regarding the importance of the security of supply of energy to the European Union, in particular as regards gas transiting from Russia via Ukraine;

Taking into account the agreements reached between Gazprom and Naftogaz Ukrainy of 19 January 2009 regarding the supply of gas to Ukraine and transit of Russian gas through Ukraine ;

Conscious of the need to ensure a regular and reliable supply of gas to Ukraine, the European Union and other states in accordance with contractual obligations and commi tments under international law;

Recognising that further reforms, based on a broad political consensus, are essential in order to ensure a sustainable, reliable and accountable gas sector in Ukraine operating for the benefit of the Ukrainian public and consumers:

The European Bank for Reconstruction and Development is ready to consider extending a sovereign-guaranteed loan to Naftogaz which, subject to agreed transition reforms being implemented by Naftogaz and the Government of Ukraine, will provide Naftogaz with working capital for immediate gas storage requirements and longer term finance to support an investment programme for the rehabilitation of the existing gas transit system. Subject to detailed due diligence, funding of up to US$300 million for immediate working capital and, in 2010, up to US$450 million for investment could be proposed for decision to the Board of the EBRD, with no more than US$450 million to be committed at any one time.

The World Bank will consider providing budget support to the government through a Development Policy Loan (DPL 4) sized preliminary and subject to confirmation up to US$500 million aimed at supporting cross-sectoral fiscal and structural reforms, including in the gas sector, targeted social assistance for the vulnerable population, and public procurement. The Development Policy Loan (DPL4) will be considered by the management of the World Bank immediately upon the satisfactory completion of all the reform measures agreed with the Government in the matrix of development policy of this operation, and subject t o the IMF’s SBA being on track.

The European Investment Bank confirms its willingness to consider sovereign guaranteed long-term loans to support and co-finance the rehabilitation and upgrade of the existing gas transit system. The EIB underlines its statutory position regarding financing long-term investments rather than short-term working capital or trade gas. Subject to due diligence, up to $450 million for long-term investment could be proposed for decision to the Board of the EIB.

The overall package would include technical assistance.

In close cooperation with the International Monetary Fund and consistent with the Fund-supported Stand-By arrangement with Ukraine, the European Commission together with the European Bank for Reconstruction and Development, the European Investment Bank, and the World Bank (“the International Development Banks”) intend, subject to their individual rules, capacities and conditions:

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  T o work together in the development of a support package to the Ukrainian authorities designed to assist in developing a sustainable solution to Ukraine’s medium-term gas transit and gas payment obligations;

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  To continue to support Ukraine’s economic stabilization and reform, including reform of the gas sector and accompanying reform of the social safety net.

In this context, the European Commission and the International Financial Institutions welcome the commitments made by Ukraine in the Prime Minister’s letters of 28 July (ref 11271/0/2-09) and 29 July (ref 11271/1/2-09) received by President Barroso. The European Bank for Reconstruction and Development would like to recall the particular importance of the commitments of the Ukrainian Government in the context of an eventual release of funds under the ir proposed support programmes.

The European Commission will continue to facilitate discussions between the International Financial Institutions and the Ukrainian authorities regarding this package of support measures concerning reform in the gas sector, including through providing verification of key data.

The European Commission will also facilitate the swift accession process for Ukraine to the Energy Community Treaty.

For their part the International Financial Institutions will continue to develop specific proposals for support with the Ukrainian authorities.

The International Financial Institutions will undertake the necessary due diligence work, recognizing that appropriate confidentiality agreements will need to be signed.

Brussels, London, Luxembourg, Washington, 31 July 2009