EC Talks With Ukraine, Moldova About Accession to Energy Community

November 28, 2008 // Published as a news service by IHS

During the talks, held in Vienna on Nov. 25 and 26, both countries demonstrated their strong willingness to join the Energy Community, to prepare for the implementation of the necessary European Union (EU) legislation and to pursue the necessary reforms of their energy markets.

Ukraine and the Republic of Moldova presented their initial assessment and timetable for the implementation of the Energy Community Treaty in relation to their energy policy strategy and planned reforms of the energy sector.

The meeting allowed for a comprehensive review of the requirements to be met by both countries. In both cases, the discussions were very constructive and did not reveal major obstacles to a swift negotiating process.

Andris Piebalgs, EC energy commissioner, welcomed the positive outcome of the first negotiations, stating, "This first meeting confirmed that it is possible to progress quickly and to conclude the negotiations with Ukraine and Moldova possibly in 2009. We hope to open negotiation with Turkey as well in the coming weeks."

In the past, Ukraine, Moldova and Turkey introduced a request to become parties to the Energy Community Treaty. Following a decision taken by the Ministerial Council of the Energy Community, on July 15, 2008, the European Council of Ministers mandated the EC to carry out negotiations with these three countries.

In its second Strategic Energy Review adopted on Nov. 13 (see IP/08/1696), the EC indicated that "the accession of Ukraine, the Republic of Moldova and Turkey to the Energy Community would catalyze their energy sector reforms and result in a mutually beneficial enlarged energy market based on common rules."

It was agreed that second rounds of negotiations with Ukraine and the Republic of Moldova would be organized in February 2009 in Brussels.

Background
The Energy Community Treaty entered into force on July 1, 2006. The EC, Albania, Bosnia-Herzegovina, Croatia, the former Yugoslav Republic of Macedonia, Montenegro, Serbia, and Kosovo pursuant UNSCR 1244 are parties to this treaty. Ukraine, the Republic of Moldova, Turkey, Norway and Georgia have currently the status of observers.

The general objective of the Energy Community is to create a stable regulatory and market framework in order to:

• Create an integrated energy market allowing for cross-border energy trade and linked to the EU market.
• Enhance the energy security of supply.
• Attract investment in power generation and networks in order to ensure stable and continuous electricity supply.
• Improve the environmental situation in relation with energy supply.

In order to pursue these objectives, the main instrument of the Energy Community Treaty is the implementation of key parts of the EU acquis. Contracting parties have the obligation to implement these instruments within specific time frames.

Since July 1, 2006, all institutions of the Energy Community have been established and begun operation, these being the Ministerial Council, the Permanent High Level Group, the Regulatory Board, the Electricity and Gas forums, and the Secretariat in Vienna.

For more information, see the Energy Community web site.

Source: European Commission.