The EBRD and Energy Community Secretariat are strengthening their joint emergency support for Ukraine’s energy sector. A Memorandum of Understanding (MoU) was agreed on the margins of the international donors’ conference “Standing with the Ukrainian People” in Paris.
A key objective of the MoU, which provides a framework for the joint collaboration between the two organisations, is to coordinate activities associated with the war on Ukraine, focusing on energy infrastructure, which has been severely damaged by Russian bombings. The Energy Community Secretariat will, along with the European Commission, the Emergency Response Coordination Centre and the Ukrainian authorities, ensure that donated and procured energy and energy-related goods are delivered to Ukraine in line with the country’s needs.
The EBRD will also set up a digital platform called “AidEnergy”, in partnership with other donors and international financial institutions (IFIs). The platform will allow the Ukrainian Ministry of Energy to create a centralised list of energy sector needs across all key energy companies and identify the donors and recipients, thus ensuring streamlined communication. This will replace the manual process that currently exists. Beyond the immediate emergency needs, the collaboration will also include support to help identify future needs and proactively procure equipment to meet expected future needs.
While the MoU will focus mainly on emergency support for Ukraine, the two organisations intend to work more broadly together to strengthen national and regional energy security. To achieve this they will create a joint crisis response that includes investment and policy support in the economies where they operate.
The cooperation will also help to further the implementation of EU-relevant energy market legislation, such as the Third Energy and Clean Energy packages. The EBRD and Energy Community Secretariat are already working on developing a transparent and liquid energy exchange, which is an important step towards integrating into the EU market.
Another crucial component of the reconstruction phase in Ukraine is improved corporate governance of state-owned enterprises. This will help attract the significant foreign private sector investment that is needed for recovery.
Background
The EBRD and the Energy Community Secretariat are already successful, long-standing partners in the Western Balkans. In 2012 the EBRD, along with the Energy Community Secretariat, the European Commission, WBIF and bilateral donors, established the Regional Energy Efficiency Programme (REEP) to address barriers to energy efficiency in the Western Balkans. The MoU provides an opportunity to leverage that cooperation and support the continued provision of vital energy services in Ukraine during the winter and beyond.
Bolstering Ukraine’s energy security has been one of the EBRD’s key priorities during the war on Ukraine, in addition to supporting trade finance to maintain the flow of essential goods, food security and vital infrastructure. The EBRD has committed to investing €3 billion in 2022 and 2023 to address the Ukrainian economy’s challenges following Russia’s invasion.
The Energy Community Secretariat, based in Vienna, is part of the Energy Community that was set up in 2006 to bring together the European Union and its neighbours to create an integrated pan-European energy market. The Secretariat has the mandate to monitor the implementation of this energy market, support investments, integrate climate and energy actions, pursue sustainability of energy systems and improve the environmental situation in Ukraine and the other eight signatories of the Energy Community Treaty.
The EBRD is a multilateral bank committed to foster transition towards open market-oriented economies and promote private and entrepreneurial initiatives in the more than 30 countries where in operates in Europe, Africa and Asia. Supporting Good Economic Governance is one of the Bank’s strategic priorities.