US says transparency will be key to Ukraine energy sector upgrade

by Admin
US says transparency will be key to Ukraine energy sector upgrade

Russia’s intensive bombardment of Ukraine in recent months has significantly diminished the country’s ability to generate energy. This week, during Ukraine’s Recovery Conference in Berlin, Ukrainian President Volodymyr Zelenskyy appealed for help in repairing Ukraine’s electricity network and for long-term investment in its energy system. President Joe Biden emphasized that the U.S. will lead the international effort to prevent Russia from weaponizing winter conditions against Ukraine.

During the conference, U.S. officials announced $824 million in energy sector assistance for Ukraine. Of this amount, $500 million is new funding recently approved by Congress, while $324 million has been repurposed from previously approved funds.

The money will be used for reconstruction of thermal power infrastructure, accelerating the development of renewable energy projects, such as wind and battery storage, supporting the creation of a decentralized energy system to enhance resilience against air attacks and protect energy infrastructure.

Geoffrey R. Pyatt, the U.S. assistant secretary of state for energy resources, told VOA the U.S. is committed to supporting Ukraine but is looking for accountability and transparent governance. This interview has been edited for clarity and brevity.

VOA: During the conference, Penny Pritzker [U.S. special representative for Ukraine’s economic recovery] emphasized the need for transparency and reforms. How does the United States view the current Ukrainian government structure and decision-making process, particularly in light of the latest government reshuffling?

Geoffrey R. Pyatt: This is a very personal issue for me because I’ve been working on these issues, helping the people of Ukraine for 11 years now. The guidelines of the roadmap are very clear, it’s laid out in the EU accession agreement. Of course, there’s more work to be done. My team and the energy bureau are very engaged on issues of corporate governance around Naftogaz, around UGV [the country’s largest gas producer UkrGasVydobuvannya], around the whole energy sector that has seen so much lack of transparency in the past. In terms of what has to be done, it’s what the Ukrainian people themselves are asking for. It’s what the Ukrainian people expect. And it’s also all the steps that are part of becoming a member of the EU.

VOA: You mentioned oversight boards in state companies. Last year, this issue caused significant tension in Ukraine. How is Ukraine fulfilling its obligations regarding transparency?

Pyatt: It’s getting better, I mean, let me give you one example, Naftogaz is a company that had huge problems in the past, in part because Russia used gas, transit and gas sales as a vector of corruption to maintain control over the people of Ukraine. The answer to that is to build a corporate governance structure that meets the highest European Union OECD standards.

Naftogaz CEO [Oleksiy] Chernyshov has committed to that objective. He has brought in a new advisory board, which has credible international partners. That doesn’t mean the problem is solved. But you can look at the performance figures that Naftogaz has established over the past year and for the first time in many years Naftogaz production numbers went up from domestic sources of gas. I can’t tell you whether those are new molecules, or those are molecules that just weren’t in the books before. But in either scenario, that’s a positive development and it reflects progress.

VOA: U.S. officials often repeat that the U.S. will support Ukraine until victory is achieved. How does this victory look for you?

Pyatt: It looks like a Ukraine, which is a member of the EU, which has secured its borders, where people are able to come back. The mothers and the children that have fled over the course of this two and a half terrible years. Every time I come out of these meetings, I feel reassured that Ukraine is going to win, Ukraine is going to continue to stand for the values that we hold dear, and that Putin will lose, because he does not understand the essential human component of what’s going on.

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