State and Prospects of Extractive Industries Transparency Initiative Implementation in Ukraine

Ukraine has taken the first steps towards becoming an Extractive Industries Transparency Initiative (EITI) candidate, an international standard that strengthens resource revenue transparency. However, under current circumstances further implementation of the Initiative in Ukraine has stalled and prospects are uncertain, given that the country is on the verge of major reforms of the oil and gas sector.

Ukraine has taken the first steps towards becoming an Extractive Industries Transparency Initiative (EITI) candidate, an international standard that strengthens resource revenue transparency. However, under current circumstances further implementation of the Initiative in Ukraine has stalled and prospects are uncertain, given that the country is on the verge of major reforms of the oil and gas sector.

With this in mind, the Kyiv International Energy Club Q-Club, with support from Revenue Watch Institute, the EITI Secretariat and International Renaissance Foundation, held a conference on October 23 called “State and Prospects of Extractive Industries Transparency Initiative Implementation in Ukraine”.

The event was held in Kyiv and gathered together representatives of several government ministries, Verkhovna Rada Committee on Fuel and Energy Complex, Naftohaz of Ukraine, State Service of Geology and Mineral Resources of Ukraine, American Chamber of Commerce, representatives of the embassies of Norway, Canada, Germany, the United States and Azerbaijan, directors of Ukrainian mining companies, energy experts and specialists from NGOs. Two key participants were EITI Secretariat Regional Director for Central Asia and the Caucasus Richard Dion and World Bank EITI Consultant Tatiana Sedova.

Market players agreed that EITI is a plus for private companies because greater openness makes them more attractive to investors, who are also interested in knowing how a government spends the money they pay in taxes, fees and other charges.

For a company, EITI is important not only from a business perspective, but also in gaining support from local communities and organizations. The participants stressed that stronger public awareness, participation and pressure can move Ukraine’s energy sector towards greater transparency.

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