The European Union's increasing dependence on the stability of
Russian gas and oil supplies makes the reliability of Ukraine's
transit networks a key factor for ensuring a non-interruptible supply
of energy resources to the EU. While requiring significant resources
for maintaining the energy transit networks' proper operation, the
Ukrainian transit infrastructure is definitely a very attractive
investment destination.
Further investment in developing Ukraine's energy transit
capacities was a key topic discussed by European and Ukrainian experts
and policymakers in Brussels at the International Round Table
'European Union and Ukraine: issues of energy security'.
According to Volodymyr Nesterenko, energy sector analyst at the
Kyiv-based Concorde Capital investment bank, Ukraine's current energy
sector investment needs are valued at USD 35bn. Primary investment
destinations are the network's modernization and enhancing energy
export capacities.
European policy-makers paid special attention to Ukraine as a key
player in the diversification of energy supplies. According to MEP
from Poland Jerzy Buzek, Ukraine could help the EU in decreasing its
dependence on Russian energy supplies, and the extension of the Odessa
- Brody oil pipeline to Gdansk would be a great step towards such
diversification.
On the other hand, Ukrainian experts are concerned about internal
challenges in the Ukrainian energy sector that impede further
investments and scare European investors. According to Oleksandr
Kamenets, president at the Private Investments Protection Association,
instability and reshuffling attempts on Ukraine's electricity market,
especially those caused by Russian businessman Kostyantyn
Grygoryshyn's companies' attempts to gain control over regional energy
companies by force, can harm the country's export potential and
decrease investment attractiveness.
Among other challenges to the development of the energy sector,
Oleksiy Tolkachov, head of the Public Committee for the National
Security of Ukraine, sees the inadequacy of current energy policies in
Ukraine. Mr. Tolkachov stresses that the existing energy strategy of
Ukraine for 2007-2030 is unrealistic. He announced the plans of the
round table organizers to launch a public campaign aimed at the
revision of the state energy strategy and a push for clearer and
forward-looking objectives. "A sound and clear national energy
strategy itself is not the key investment attraction factor, but it
defines the overall energy sector environment, thus making it more
transparent and understandable to investors," says Mr. Tolkachov.
The Round Table participants also signed a final declaration,
stressing the need to involve the wider public and independent experts
in developing proposals for national governments regarding an
All-European energy policy.