MEPs call on Ukraine to increase its energy sphere transparency

MEPs Guntars Krasts and Yerzi Buzek call on Ukraine to increase transparency in the energy sphere.

They claimed this during roundtable “Ukraine-EU: Energy Security Issues” on 22 March in Brussels.

In particular, deputy president of the committee for economic and monetary affairs G.Krasts (the right-wing parties group, Latvia) stressed that EU would like to regard Ukraine as a more stable partner, but, according to him, to reach this goal, Ukraine should render transparent its energy market as soon as possible and refuse from collaborating with companies, the transparency of which is doubtful.

He was supported by Mr.Buzek (member of the European People’s Party and European Democrats faction, Poland), who noted that Ukraine could help EU to implement its energy strategy, but at first it should interest EU with its attractive proposals.

The Ukraine’s energy security was the topical issue in the speech of Association for Private Investments Defense President Oleksander Kamianets, who turned the attention of roundtable participants to significant internal and foreign problems, which negatively influence the state and perspectives of developing the collaboration between Ukraine and EU in the power industry sphere, and potentially threaten the energy security of both Ukraine and EU.

Speaking about the foreign problems, Oleksander Kamianets mentioned the scandal with Hungarian companies Emfesz Kft and Energo Odbyt. In October-November of 2006, contracts on supplies to Hungary of 160 MW and 45 MW of electrical energy respectively were signed with these companies. However, the companies cannot export the Ukrainian electrical energy, as the very first attempt to change the contractor was opposed by MVM Hungarian state energy company, subject to Hungarian lawmaker Laslo Kapoyi. MVM made a demand to sell 350 megawatt solely to System Consulting company. Otherwise, the Hungarian state company refuses to accept the Ukrainian electrical energy at all. Ukrinterenergo company, the Ukrainian electrical energy exporter, was forced to agree under this pressure, and to increase the share of System Consulting at the expense of disrupting contracts with Emfesz Kft and Energo Odbyt.

As for internal problems, Oleksander Kamianets mentioned the activities of Russian businessman Konstantin Grygorishin in Ukraine. In particular, he expressed an opinion that the attempts to re-distribute the market of regional energy-distribution companies, perpetrated in 2005 by representatives of Russian businessman Konstantin Grygorishin, did not contribute to the joint operation of energy market inside the country, as well as to fulfilling export contracts.

This discussion was reflected in the concluding statement, adopted by the roundtable participants.