Ukraine and the USA signed a memorandum for $522 million on strengthening the energy system

Author:
Sofiia Telishevska
Date:

Ukraine and the USA signed a memorandum on cooperation in the field of stability of the energy system of Ukraine. $522 million was allocated for its strengthening.

The agreement provides for the restoration of critical infrastructure, the introduction of distributed generation, the reform of the energy sector and the promotion of Ukraineʼs post-war transition to a low-carbon, competitive and EU-integrated energy economy.

"The US government intends to provide aid to Ukraine in the total amount of $522 million, of which $422 million is new aid in the field of energy, and $100 million — on the condition that the relevant bodies of the state authorities of Ukraine implement the measures specified in paragraph 3 of this section," the message reads.

The conditions for providing assistance are a number of steps in energy sector reforms, namely:

  • approval of the new charter and creation of the supervisory board of "Operator GTS of Ukraine" LLC — by October 30, 2023;
  • progress in the implementation of the plan for the corporatization of "Energoatom" State Enterprise (the beginning of the tender procedure for the election of members of the Energoatom Supervisory Board by November 30, 2023, the creation of Energoatom PJSC by December 31, 2023);
  • By April 1, 2024, the National Commission for State Regulation of Energy and Public Utilities should establish the procedure, scope, extent and frequency of submitting information on wholesale trade in energy carriers related to the REMIT legislation.

The memorandum by its nature is not a binding agreement.