NAFTOGAZ: Terms of the "winter package", including natural gas price, agreed by the Ukrainian, Russian and European sides

Volodymyr Demchyshyn, Minister of Energy and Coal Industry of Ukraine, Aleksander Novak, the Russian Energy Minister, and Maroš Šefčovič, Vice-President of the European Commission, have discussed and agreed all substantial commitments of the governments of Russia and Ukraine, as well as the European Commission which are to be included in the Binding Protocol within the framework of the new gas supply "winter package".
All key components of the Addendum to the gas supply agreement between Naftogaz and Gazprom have been agreed. The signing of this protocol will require a separate procedure. Russian Energy Minister Alexander Novak said Moscow offered a cut of "about $20" per 1,000 cubic metres from the provisionally set price of US $252. The Wall Street Journal reported that the tentative deal became possible after a $1 billion financing package provided by international financial institutions led by the World Bank. Read more at http://www.naftogaz.com

About coming big sale of state owned enterprises in Ukraine

More than a year ago, Ukrainian govenmrnt announced "the largest privatization in 23 years" and half year ago prepared  the first annual review of the TOP 100 state-owned enterprises (SOEs), which comprise 80% of all the SOE sector revenues and 90% of SOE sector assets. However, over this year: privatization proceeds amounted just USD 467 million.
Recently a list of a dozen companies that are top priorities for privatization is being compiled by government; the action plan on five of them is already in place and waits to be approved by the end of September. The 2015 budget expects USD 17bn in privatization proceeds. 
According to the Ministry of Economy, Ukraine has 3,374 state-owned enterprises as of today.  Only 1,920 out of them are operating.  Cumulatively, they generated losses even before the Maidan. In 2014, their financial performance deteriorated further. Read more at http://ukrainianweek.com/

USAID helps fighting corruption in Ukraine

U.S. Agency for International Development (USAID) Administrator Rajiv Shah  announced in June $10 million in additional U.S. support for Ukraine, largely for corruption fighting measures. This includes assistance in areas not previously addressed, by helping Ukrainians develop institutions and mechanisms to better monitor how their government is working for them.
Shah announced the investment during remarks at the Kyiv National Economics University before an audience of students, staff, civil society and government ministers. Over the past 20 years, USAID has invested close to $2 billion in Ukraine to build a stronger more stable economy, develop and strengthen democratic structures, strengthen civil society and provide better healthcare. Read more at https://www.usaid.gov

Two foreign companies begin importing gas to Ukraine and selling it to domestic consumers

This news was announced by Andriy Kobolev, the chairman of the national joint-stock company Naftogaz.

According to Kobolev, Slovak gas transportation system operator Eustream a.s. and U.S. gas trader TrailStone are the first western gas operators which join Ukrainian natural gas market. New participants of the Ukrainian gas sales market are ready to pay VAT for imports of gas to Ukraine (in comparison to the state holding, which has the privilege of not paying VAT).  Read more at http://en.interfax.com.ua

INOGATE to hold series of events on energy policy in Ukraine

High-level events will be focused on Energy Market Reform and Sustainable Energy Policy for Ukrainian policy and decision-makers to help Ukraine not only to decrease energy dependence on Russian gas, but to improve the economic situation in the country.
The first in the series of policy talks will be organised in mid-October and will be devoted to the topic of energy tariffs as well as regulation of end-customer tariffs and the application of subsidies. INOGATE is an EU-funded programme promoting international energy co-operation between the European Union and the Partner Countries of Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Tajikistan, Turkmenistan, Ukraine and Uzbekistan. Read more at http://finchannel.com

Government helps homeowners to save energy and money

This week State Agency of Ukraine on Energy Efficiency and Energy Saving reimbursed 22 million Hryvnia to homeowners who borrowed money from designated banks to buy energy efficient equipment and materials.
According to the program the government provides compensation from the state budget up to 70% of amount of loans taken by homeowners to improve building’s thermal insulation  and install energy efficient equipment.  Read more at http://saee.gov.ua

About importance of Ukraine's debt deal

Larry Summers, former U.S. treasury secretary, who has been watching debt negotiations  closely for more than 30 years, statesthat Ukraine has gotten as good and fast a deal as any he has ever seen.

The deal  reduces the principal value of Ukraine’s debt and eliminates principal payments for the next four years, unlocks substantial support from the IMF and other international financial institutions,  brings forward the day when Ukraine can attract significant private capital flows, establishes clear principles that will enable Ukraine to defer all principal payments on its obligation coming due to Russia.  He also noted that “historians will wonder why the international community has invested more than 10 times as much money in supporting a recalcitrant Greece as in supporting a reforming Ukraine, since the start of their crisis. Perhaps intra-European Union loans are in some special category, but as of this moment the IMF’s potential exposure to Greece is $41 billion compared to only $22 billion for Ukraine”. Read more at http://www.washingtonpost.com/

Canadian government provided EUR 200,000 grant to the National Reform Council of Ukraine

Ambassador Extraordinary and Plenipotentiary of Canada to Ukraine Roman Vashchuk, Vice President of the Agriteam Canada Consulting Ltd. Gale Turner, and EBRD Director for Ukraine  Sevki Acuner signed the grant agreement on the allocation of EUR 200,000 to support the National Reform Council of Ukraine. The funds are provided by the Canadian Department of Foreign Affairs, Trade and Development (DFATD). Read more at http://www.ukrinform.ua

KyivPost about three priorities for Ukraine's energy sector

The first priority for Ukraine’s energy sector is taking reform and policy steps to ensure that there is enough energy to get through the winter is critical. This is short term goal which, in fact, comes to the big question is whether there will be enough gas supplies to heat Ukrainian homes through April and how to boost coal inventory levels to be able to generate enough electricity at coal fired power plants.
At the same time, Ukraine  must also adopt a long-term strategy to make sure this situation doesn’t happen again. This means including the second and third priorities: boosting domestic energy production and improving energy efficiency. Read more at www.kyivpost.com