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Ukraine

Compliance with EITI (UA0040)

Overview

At-a-Glance

Action Plan: Ukraine Second Action Plan 2014-2015

Action Plan Cycle: 2014

Status: Inactive

Institutions

Lead Institution: Ministry of Energy

Support Institution(s): Ministry of Economic Development, Ministry of Finance, Ministry of Ecology and Natural Resources, International Renaissance Foundation, NGO Dixie Group, NGO Kyiv International Energy Club Q-Club, NGO Analytical Centre of Regional Cooperation, the international initiative “Publish What You Pay,” other unspecified NGOs and international organisations

Policy Areas

Extractive Industries

IRM Review

IRM Report: Ukraine End-of-Term Report 2014-2016

Starred: No

Early Results: Major Major

Design i

Verifiable: Yes

Relevant to OGP Values: Access to Information Civic Participation , Public Accountability

Potential Impact:

Implementation i

Completion:

Description

Taking measures concerning the acquisition by Ukraine of the status of compliance with the Extractive Industries Transparency Initiative standards

IRM End of Term Status Summary

8. EITI Compliance

Commitment Text: 8. Taking measures for Ukraine to obtain the status of compliance with the Extractive Industries Transparency Initiative standards.

Expected result: national legal framework brought into conformity with the EITI standard; a report in Ukrainian and in a foreign language prepared according to the above-mentioned standard.

Lead institution(s): Ministry of Energy

Supporting institution(s): Ministry of Economic Development, Ministry of Finance, Ministry of Ecology and Natural Resources, International Renaissance Foundation, NGO Dixie Group, NGO Kyiv International Energy Club Q-Club, NGO Analytical Centre of Regional Cooperation, the international initiative “Publish What You Pay,” other unspecified NGOs and international organisations

Start Date: Not specified                                                        End Date: 31 December 2015

Commitment aim

In October 2013, prior to the commitment period, Ukraine was accepted as an Extractive Industries Transparency Initiative (EITI) candidate country. This commitment aimed to advance Ukraine’s compliance with EITI standards, which was an important step for ensuring transparency and preventing embezzlement of revenues received from the extractive industry. While the title of the commitment (“taking measures”) was too broad, the expected outputs included bringing national law into compliance with EITI standards, and preparing a report in line with those standards. A similar commitment was included in the previous OGP action plan. According to the State Statistics Service, the oil and gas sector’s contribution to Ukraine’s GDP is about 1.3%. The 2013 EITI report documented USD 3.3 billion of payments by oil and gas companies (including oil and gas transportation companies).[Note 33: https://eiti.org/ukraine.]

Status

Midterm: Substantial

The national multi-stakeholder group (MSG) developed the terms of reference for the independent administrator for Ukraine’s first EITI report. The report was to include the oil and gas sectors. The first country EITI report was scheduled to be prepared by the end of 2015.[Note 34: http://bit.ly/1ODYqyS. ] In August 2015, the MSG selected the company, Ernst & Young, to independently develop the EITI report. It also selected the national secretariat for the MSG through an open competition.[Note 35: http://bit.ly/1jQx6jZ. ] The report was eventually delayed due to the failure of the Ukranafta company (majority stake owned by the state) and the State Fiscal Service to provide information required for the report.[Note 36: Independent Reporting Mechanism (IRM) Progress Report 2014-15: Ukraine, 42. ]

In addition, in June 2015, Parliament adopted the Law on Amendments in the Legislation to Ensure Transparency in the Extractive Industries. The draft law was prepared by MSG members and civil society experts. In its preamble, the law directly refers to the OGP plan. It includes important changes in the Subsoil Code within the Law on Oil and Gas. It also instructs the government to develop procedures for ensuring transparency in the extractive industries, and to adopt the international reporting standards by users of subsoil resources. The amendments of June 2015 were seen as an interim measure. The MSG started working on a new comprehensive draft law on the transparency of extractive industries.[Note 37: Ibid, 42-43. ]

End of term: Substantial

Ukraine’s first EITI report for 2013 was published in November 2015. The country’s validation against the EITI Standard will commence on 1 July 2017.[Note 38: https://eiti.org/ukraine. ] According to the government’s self-assessment report, the preparation of the second national report has begun; based on the tender, the government selected an independent administrator to prepare the report, which was due in December 2016.[Note 39: Text of the report available at http://bit.ly/2nAPbaw.] The country’s second report will include the coal and iron ore sectors. In December 2015, the government adopted regulations on ensuring transparency in the extractive industries in accordance with the 2015 law. It also reported on a number of awareness-raising activities with civil society involvement.

In June 2016, a group of MPs submitted to Parliament a draft law on the disclosure of information in extractive industries. The draft law builds on the 2015 amendments, and suggests a comprehensive framework for transparency in the sector. It was developed by the Ukrainian multi-stakeholder group, together with external experts and Members of Parliament, in line with recommendations from the first EITI Report. It institutionalises the EITI national coordination and reporting mechanism, aligns Ukrainian legislation with the relevant EU law, and establishes detailed requirements on disclosure of information in the sector, including beneficial ownership.

Did it open government?

Access to information: Major

Civic Participation: Major

Public accountability: No change

The commitment sought to continue working toward compliance with international standards on transparency in extractive industries. If the overall goal of the commitment (i.e., obtain status of compliance) is achieved, it could have a transformative effect. Following a delay, the government published its first national EITI report, which has become an important milestone. The report discloses information about key Ukrainian oil and gas fields, license holders, production volumes, as well as the payments companies made to budgets of all levels.

The government also began preparing the second national report. Additionally, Parliament passed important amendments in the legislation to introduce transparency instruments in the extractive industries and government policy. A comprehensive law on transparency in the extractives sector has been developed, and is pending in Parliament. The EITI process in Ukraine was the first to involve genuine multi-stakeholder dialogue within the MSG, including with a number of NGOs and experts.

The Multi-Stakeholder Group is composed of six CSOs (International Renaissance Foundation; “Centre of Globalistics Strategy I,” DIXI Group, Sustainable Development Institute, Analytical Centre of Regional Cooperation, Chapter in Donestk Oblast of the NGO “All-Ukrainian People’s Control”), six private enterprises, and six government ministries. As members of the MSG, civil society groups play an active role in monitoring and evaluating EITI compliance. The MSG oversees EITI reporting, including selecting and managing the Independent Administrator in charge of carrying out evaluations. CSOs share an equal level of decsion-making power as all other MSG members, and directly influence and decide policies related to EITI activities.[Note 40: Main UA EITI Work Plan 2015-2016 https://eiti.org/sites/default/files/documents/2015_ukraine_work_plan.pdf.] During its meeting in November 2016, the MSG decided to train local NGO representatives on how to use the EITI report data and monitor implementation of recommendations.[Note 41: Institute for Budgetary and Socio-economic Research, 16 November 2016, http://www.ibser.org.ua/en/news/msg-meeting-covering-operational-results-ukraines-extractive-industries-2014-2015.]

All these activities have strongly improved progress toward full EITI compliance as envisioned by the commitment. The cooperative process has also increased access to information and civic participation in a major way. 

Carried forward?

The commitment was carried over to the new action plan. It provides for the adoption of the law on the disclosure of information in extractive industries, and publication of the second and third national reports (in December 2016 and December 2017, respectively). The commitment no longer aims to achieve Ukraine’s compliance with the EITI Standard, a factor that diminishes the commitment’s ambition.

Theme III. Prevent and combat corruption


Ukraine's Commitments

  1. Infrastructure data portal

    UA0070, 2018, E-Government

  2. open standard for e-system

    UA0071, 2018, E-Government

  3. Ensuring openness and transparency of selling public assets and property

    UA0072, 2018, E-Government

  4. Transparency in public procurement (Prozorro)

    UA0073, 2018, E-Government

  5. Awarenss raising about social and economic development

    UA0074, 2018, Aid

  6. e-calls for proposals to support CSOs

    UA0075, 2018, Civic Space

  7. Beneficial ownership registry

    UA0076, 2018, Beneficial Ownership

  8. Anti-corruption Training

    UA0077, 2018, Anti-Corruption Institutions

  9. Publishing environmental information

    UA0078, 2018, E-Government

  10. Database of natural resources

    UA0079, 2018, E-Government

  11. Interactive map of mines

    UA0080, 2018, E-Government

  12. Priority electronic services

    UA0081, 2018, Citizenship and Immigration

  13. online platform for executive bodies and CSOs

    UA0082, 2018, Civic Space

  14. EITI online data

    UA0083, 2018, E-Government

  15. electronic resources for education

    UA0084, 2018, E-Government

  16. online verification of education certificates

    UA0085, 2018, E-Government

  17. Free access to national repository for academic texts

    UA0086, 2018, E-Government

  18. Administrative Service Decentrilisation and Improvement

    UA0057, 2016, Capacity Building

  19. United State Portal Extension; Electronic Government Information Services Unification; Modern Tools for Electronic Identification

    UA0058, 2016, Capacity Building

  20. System for Entities Performing Government Functions

    UA0059, 2016, Capacity Building

  21. Free Urban Planning Documentation

    UA0060, 2016, E-Government

  22. Beneficial Ownership Verification System

    UA0061, 2016, Beneficial Ownership

  23. CoST Beneficial Ownership Standards

    UA0062, 2016, E-Government

  24. Transpartent Budget System

    UA0063, 2016,

  25. Starred commitment Open Public Procurement

    UA0064, 2016, Capacity Building

  26. Starred commitment Extractive Industries Transparency Initiative

    UA0065, 2016, Extractive Industries

  27. Environmental Public Monitoring

    UA0066, 2016, Environment and Climate

  28. Community Policing System

    UA0067, 2016, Education

  29. Draft Law on Public Consultations

    UA0068, 2016, Legislation & Regulation

  30. Development of E-democracy.

    UA0069, 2016,

  31. Improve government rules on CSO involvement

    UA0031, 2014, E-Government

  32. Financing of charities

    UA0032, 2014, Civic Space

  33. Not-for-profit status for CSOs

    UA0033, 2014, Civic Space

  34. Public participation law

    UA0034, 2014, E-Government

  35. Establishing Rules on Processing Official Information

    UA0035, 2014, E-Government

  36. Access to Urban Planning Documents

    UA0036, 2014, E-Government

  37. Starred commitment Access to Communist-Era Archives

    UA0037, 2014, Legislation & Regulation

  38. Starred commitment Draft law on open data

    UA0038, 2014, Legislation & Regulation

  39. Starred commitment Supervisory mechanism for the right to information

    UA0039, 2014, Legislation & Regulation

  40. Compliance with EITI

    UA0040, 2014, Extractive Industries

  41. Monitoring of infrastructure projects

    UA0041, 2014, Anti-Corruption Institutions

  42. Adopt regional anti-corruption programmes

    UA0042, 2014, Anti-Corruption Institutions

  43. Corruption risk assessment methodology

    UA0043, 2014, Anti-Corruption Institutions

  44. Starred commitment Asset disclosure on a single web portal

    UA0044, 2014, Asset Disclosure

  45. Law on administrative procedure

    UA0045, 2014, Legislation & Regulation

  46. Law on streamlining payment of administrative fees

    UA0046, 2014, E-Government

  47. Administrative services portal

    UA0047, 2014, E-Government

  48. Draft law on decentralisation of administrative services

    UA0048, 2014, Legislation & Regulation

  49. Draft law on social services

    UA0049, 2014, E-Government

  50. e-Government laws

    UA0050, 2014, E-Government

  51. Electronic readiness assessment

    UA0051, 2014, E-Government

  52. Government regulations on open data

    UA0052, 2014, E-Government

  53. Electronic democracy development roadmap

    UA0053, 2014, E-Government

  54. Open budget initiatives

    UA0054, 2014, E-Government

  55. e-Petitions

    UA0055, 2014, E-Government

  56. e-Governance training for local government

    UA0056, 2014, Capacity Building

  57. Laws on public participation

    UA0001, 2012, Civic Space

  58. Amendments to the law on community associations

    UA0002, 2012, Civic Space

  59. Amendments to resolutions on collaboration with civil society

    UA0003, 2012, E-Government

  60. Training for public servants on consultations

    UA0004, 2012, Capacity Building

  61. Harmonisation of access to information laws

    UA0005, 2012, E-Government

  62. By-laws on access to information

    UA0006, 2012, Legislation & Regulation

  63. Guidelines for classifying data

    UA0007, 2012, Public Participation

  64. Public information recording systems

    UA0008, 2012, Records Management

  65. Law on public broadcasting

    UA0009, 2012, Civic Space

  66. Public access to information in state registers

    UA0010, 2012, E-Government

  67. Starred commitment Extractive Industries Transparency Initiative

    UA0011, 2012, E-Government

  68. Law for controlling declarations of public servants

    UA0012, 2012, Asset Disclosure

  69. Public declarations of officials’ assets

    UA0013, 2012, Asset Disclosure

  70. Guidelines on conflicts of interest

    UA0014, 2012, Conflicts of Interest

  71. Updated anti-corruption laws

    UA0015, 2012, E-Government

  72. Regional anti-corruption programmes

    UA0016, 2012, E-Government

  73. Law on competitive e-government procurement

    UA0017, 2012, E-Government

  74. Starred commitment Administrative services reforms

    UA0018, 2012, E-Government

  75. Electronic access to administrative services

    UA0019, 2012, E-Government

  76. Governmental web portal of administrative services

    UA0020, 2012, E-Government

  77. Administrative services in a digital format

    UA0021, 2012,

  78. Starred commitment Regional administrative service centres

    UA0022, 2012, Public Service Delivery

  79. Programme for promotion of e-government

    UA0023, 2012, E-Government

  80. Electronic collaboration between executive agencies

    UA0024, 2012,

  81. Web-based petitions system

    UA0025, 2012,

  82. One stop shop for e-Reporting

    UA0026, 2012, E-Government

  83. E-region pilot project

    UA0027, 2012, E-Government

  84. Network of e-government practitioners

    UA0028, 2012, Public Participation

  85. Public libraries as bridges towards e-governance

    UA0029, 2012, E-Government

  86. E-government knowledge management portal

    UA0030, 2012,