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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

Anti-Corruption, Extractive Industries, Public Participation

IRM Review

IRM Report: Ukraine End-of-Term Report 2014-2016, Ukraine IRM Report 2014 – 2015

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


Commitments

  1. Expand budget transparency system

    UA0087, 2020, Anti-Corruption

  2. Transparency of public assets

    UA0088, 2020, Access to Information

  3. Create general education distance learning system

    UA0089, 2020, E-Government

  4. Open Science

    UA0090, 2020, Access to Information

  5. Online platform for patents and innovation

    UA0091, 2020, Capacity Building

  6. Audit of beneficial ownership register

    UA0092, 2020, Anti-Corruption

  7. Expand uses for e-democracy platform

    UA0093, 2020, Access to Information

  8. Electronic system for transparency in extractive industries

    UA0094, 2020, Anti-Corruption

  9. Establish National Centre for Open Data Competence

    UA0095, 2020, Access to Information

  10. Digital accessibility for persons with disabilities

    UA0096, 2020, E-Government

  11. Increasing youth participation in policy

    UA0097, 2020, Capacity Building

  12. Publish information related to road system

    UA0098, 2020, E-Government

  13. Register for infrastructure contract information

    UA0099, 2020, Anti-Corruption

  14. Publish gender-disaggregated open data

    UA0100, 2020, Access to Information

  15. Infrastructure Data Portal

    UA0070, 2018, Anti-Corruption

  16. Open Standard for e-System

    UA0071, 2018, E-Government

  17. Ensuring Openness and Transparency of Selling Public Assets and Property

    UA0072, 2018, E-Government

  18. Transparency in Public Procurement (Prozorro)

    UA0073, 2018, Access to Information

  19. Awarenss Raising About Social and Economic Development

    UA0074, 2018, Aid

  20. e-Calls for Proposals to Support CSOs

    UA0075, 2018, Civic Space

  21. Beneficial Ownership Registry

    UA0076, 2018, Anti-Corruption

  22. Anti-Corruption Training

    UA0077, 2018, Anti-Corruption

  23. Publishing Environmental Information

    UA0078, 2018, E-Government

  24. Database of Natural Resources

    UA0079, 2018, Access to Information

  25. Interactive Map of Mines

    UA0080, 2018, E-Government

  26. Priority Electronic Services

    UA0081, 2018, Citizenship & Immigration

  27. Online Platform for Executive Bodies and CSOs

    UA0082, 2018, Civic Space

  28. EITI Online Data

    UA0083, 2018, Access to Information

  29. Electronic Resources for Education

    UA0084, 2018, Access to Information

  30. Online Verification of Education Certificates

    UA0085, 2018, E-Government

  31. Free Access to National Repository for Academic Texts

    UA0086, 2018, E-Government

  32. Administrative Service Decentrilisation and Improvement

    UA0057, 2016, Capacity Building

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

    UA0058, 2016, Capacity Building

  34. System for Entities Performing Government Functions

    UA0059, 2016, Anti-Corruption

  35. Free Urban Planning Documentation

    UA0060, 2016, E-Government

  36. Beneficial Ownership Verification System

    UA0061, 2016, Anti-Corruption

  37. CoST Beneficial Ownership Standards

    UA0062, 2016, Anti-Corruption

  38. Transpartent Budget System

    UA0063, 2016,

  39. Starred commitment Open Public Procurement

    UA0064, 2016, Access to Information

  40. Starred commitment Extractive Industries Transparency Initiative

    UA0065, 2016, Anti-Corruption

  41. Environmental Public Monitoring

    UA0066, 2016, Access to Information

  42. Community Policing System

    UA0067, 2016, Education

  43. Draft Law on Public Consultations

    UA0068, 2016, Legislation & Regulation

  44. Development of E-Democracy.

    UA0069, 2016, Anti-Corruption

  45. Improve Government Rules on CSO Involvement

    UA0031, 2014, E-Government

  46. Financing of Charities

    UA0032, 2014, Civic Space

  47. Not-For-Profit Status for CSOs

    UA0033, 2014, Civic Space

  48. Public Participation Law

    UA0034, 2014, E-Government

  49. Establishing Rules on Processing Official Information

    UA0035, 2014, Access to Information

  50. Access to Urban Planning Documents

    UA0036, 2014, E-Government

  51. Starred commitment Access to Communist-Era Archives

    UA0037, 2014, Legislation & Regulation

  52. Starred commitment Draft Law on Open Data

    UA0038, 2014, Access to Information

  53. Starred commitment Supervisory Mechanism for the Right to Information

    UA0039, 2014, Access to Information

  54. Compliance with EITI

    UA0040, 2014, Anti-Corruption

  55. Monitoring of Infrastructure Projects

    UA0041, 2014, Anti-Corruption

  56. Adopt Regional Anti-Corruption Programmes

    UA0042, 2014, Anti-Corruption

  57. Corruption Risk Assessment Methodology

    UA0043, 2014, Anti-Corruption

  58. Starred commitment Asset Disclosure on a Single Web Portal

    UA0044, 2014, Anti-Corruption

  59. Law on Administrative Procedure

    UA0045, 2014, Legislation & Regulation

  60. Law on Streamlining Payment of Administrative Fees

    UA0046, 2014, E-Government

  61. Administrative Services Portal

    UA0047, 2014, Access to Information

  62. Draft Law on Decentralisation of Administrative Services

    UA0048, 2014, Legislation & Regulation

  63. Draft Law on Social Services

    UA0049, 2014, E-Government

  64. e-Government Laws

    UA0050, 2014, E-Government

  65. Electronic Readiness Assessment

    UA0051, 2014, E-Government

  66. Government Regulations on Open Data

    UA0052, 2014, Access to Information

  67. Electronic Democracy Development Roadmap

    UA0053, 2014, Anti-Corruption

  68. Open Budget Initiatives

    UA0054, 2014, Access to Information

  69. e-Petitions

    UA0055, 2014, Access to Justice

  70. e-Governance Training for Local Government

    UA0056, 2014, Capacity Building

  71. Laws on Public Participation

    UA0001, 2012, Civic Space

  72. Amendments to the Law on Community Associations

    UA0002, 2012, Civic Space

  73. Amendments to Resolutions on Collaboration with Civil Society

    UA0003, 2012, E-Government

  74. Training for Public Servants on Consultations

    UA0004, 2012, Capacity Building

  75. Harmonisation of Access to Information Laws

    UA0005, 2012, Access to Information

  76. By-Laws on Access to Information

    UA0006, 2012, Access to Information

  77. Guidelines for Classifying Data

    UA0007, 2012, Public Participation

  78. Public Information Recording Systems

    UA0008, 2012,

  79. Law on Public Broadcasting

    UA0009, 2012, Civic Space

  80. Public Access to Information in State Registers

    UA0010, 2012, E-Government

  81. Starred commitment Extractive Industries Transparency Initiative

    UA0011, 2012, Anti-Corruption

  82. Law for Controlling Declarations of Public Servants

    UA0012, 2012, Anti-Corruption

  83. Public Declarations of Officials’ Assets

    UA0013, 2012, Anti-Corruption

  84. Guidelines on Conflicts of Interest

    UA0014, 2012, Anti-Corruption

  85. Updated Anti-Corruption Laws

    UA0015, 2012, E-Government

  86. Regional Anti-Corruption Programmes

    UA0016, 2012, E-Government

  87. Law on Competitive e-Government Procurement

    UA0017, 2012, Anti-Corruption

  88. Starred commitment Administrative Services Reforms

    UA0018, 2012, E-Government

  89. Electronic Access to Administrative Services

    UA0019, 2012, E-Government

  90. Governmental Web Portal of Administrative Services

    UA0020, 2012, E-Government

  91. Administrative Services in a Digital Format

    UA0021, 2012,

  92. Starred commitment Regional Administrative Service Centres

    UA0022, 2012,

  93. Programme for Promotion of e-Government

    UA0023, 2012, E-Government

  94. Electronic Collaboration Between Executive Agencies

    UA0024, 2012,

  95. Web-Based Petitions System

    UA0025, 2012, E-petitions

  96. One Stop Shop for e-Reporting

    UA0026, 2012, E-Government

  97. e-Region Pilot Project

    UA0027, 2012, E-Government

  98. Network of e-Government Practitioners

    UA0028, 2012, Public Participation

  99. Public Libraries as Bridges Towards e-Governance

    UA0029, 2012, E-Government

  100. e-Government Knowledge Management Portal

    UA0030, 2012,

Open Government Partnership