Improving Transparency and Accountability in the Extractive Industries (UA0113)

Improving Transparency and Accountability in the Extractive Industries in Accordance with the Updated International Standard of the Extractive Industries Transparency Initiative

This Action Plan provides for the continued implementation of the Extractive Industries Transparency Initiative (EITI) in Ukraine, building on the experience gained under previous action plans for the Open Government Partnership Initiative. In 2023, the international EITI Board adopted a new standard for the sound management of oil, gas and mineral resources (hereinafter referred to as the 2023 EITI Standard). Therefore, it has become necessary to update national legislation and reporting practices in line with the new requirements. Currently, the Law of Ukraine "On Ensuring Transparency in the Extractive Industries" does not fully incorporate the provisions of the 2023 EITI Standard, in particular with regard to the disclosure of information on greenhouse gas emissions, gender aspects, social and environmental impacts, the energy transition and anti-corruption policies. This limits data analysis and public oversight and reduces the effectiveness of governance in the sector.

To ensure the effective implementation of the Extractive Industries Transparency Initiative (EITI) in Ukraine, it is necessary to streamline the preparation and publication of the annual Country Report on its implementation through the EITI online platform, ensure effective coordination and communication among all stakeholders, and comply with the requirements of the 2023 EITI Standard and the recommendations issued by the EITI International Secretariat following the validation carried out in 2024.

The EITI Country Report covers a wide range of data on the activities of the extractive sector, including not only information on payments but also statistical and contextual indicators of public interest. Every year, the amount of information disclosed increases significantly, making the EITI Country Report an increasingly lengthy document. A considerable amount of data has already been published on the EITI online platform in Ukraine; however, the new requirements of the 2023 EITI Standard call for an even greater volume of information to be collected, analysed and published. The digitalisation of reporting processes, the automation of data collection and the transition to the systematic disclosure of information by reporting entities will enhance user-friendliness, improve the understanding of data and ensure its effective use by all stakeholders.

It is envisaged that conditions will be created to enable reporting entities to submit their reports directly via the EITI online platform in Ukraine, which will help to improve the quality and timeliness of annual reports. It is also essential to draft amendments to the Law of Ukraine "On Ensuring Transparency in the Extractive Industries", expand the scope of information subject to disclosure, including data on greenhouse gas emissions, social and environmental projects, reserves, projections, anti-corruption programmes and gender aspects, and introduce requirements for the publication of the results of post-project monitoring and environmental audits. It is also important to refine the terminology and procedures relating to production-sharing agreements.

The expected outcomes of these measures are:

processes for collecting, analysing and disseminating information on the extractive industries have been improved, and opportunities for public oversight in the sector have been enhanced;

Ukraine's international obligations under the Extractive Industries Transparency Initiative have been fulfilled, and the conditions have been created for the successful completion of the next validation round in accordance with the 2023 EITI Standard;

The principles of sustainable development and the energy transition have been integrated into the management of the extractive industries.

It is anticipated that this activity will be submitted to the Open Gov Challenge organised by the international Open Government Partnership, as it aims to update the national regulatory and institutional framework for transparency in the extractive industries and to digitise and systematise data disclosure through the EITI online platform in Ukraine. Despite the ongoing shelling and destruction of energy, gas and other extractive-industry infrastructure, Ukraine will ensure the continued implementation of the EITI and transition from a predominantly reporting-based approach to the systematic digital disclosure of an expanded range of data, while enhancing public accountability and opportunities for public oversight. The main thematic area of the Open Gov Challenge in which the activity will be presented is the fight against corruption, as its implementation will help to increase the transparency of financial flows and management decisions in the sector, expand the scope of mandatory disclosure, improve reporting rules and strengthen mechanisms for preventing corruption risks. An additional thematic area is digital governance, given the introduction of digital reporting tools, the automation of data collection and the publication of data via the EITI online platform in Ukraine.

Milestones Table:

Steps

1. Launch of the EITI online platform in Ukraine

Responsible agency:
Ministry of Energy
State Tax Service
Ukrainian Geological Survey
Ministry of Economy and Environment
Ministry of Justice

Completion time/period:
June 2026 - December 2027

Partners:
Energy Transparency Association (subject to consent)
other civil society organisations (subject to consent)
Multi-stakeholder group on the implementation of the EITI in Ukraine (subject to consent)
German Society for International Cooperation (GIZ) (subject to consent)
International Renaissance Foundation (subject to consent)
other international organisations, development partners engaged in international technical assistance projects (programmes) (subject to consent)

Delivery indication:
The EITI online platform in Ukraine has been commissioned for full-scale operation;
the main part of Ukraine's EITI Country Report has been prepared in digital format;
draft regulatory acts have been prepared to provide for the digitalisation of data collection and analysis processes via the EITI online platform in Ukraine.

2. Conducting public consultations on the disclosure of data and information in accordance with the requirements of the 2023 EITI Standard, in particular with regard to greenhouse gas emissions, gender issues, social and environmental projects, anti-corruption policies, post-project monitoring and environmental auditing, as well as refining the terminology and procedures related to production-sharing agreements and other aspects of operations in the extractive industries

Responsible agency:
Ministry of Energy
State Tax Service
Ukrainian Geological Survey
Ministry of Economy and Environment

Completion time/period:
June 2026 - December 2027

Partners:
Energy Transparency Association (subject to consent)
other civil society organisations (subject to consent)
Multi-stakeholder group on the implementation of the EITI in Ukraine (subject to consent)
German Society for International Cooperation (GIZ) (subject to consent)
International Renaissance Foundation (subject to consent)
other international organisations, development partners engaged in international technical assistance projects (programmes) (subject to consent)
Secretariat of the Extractive Industries Transparency Initiative (subject to consent)

Delivery indication:
At least five events were held as part of the public consultation process.

3. Drafting proposals for amendments to legislation on transparency and accountability in the extractive industries

Responsible agency:
Ministry of Energy
Ministry of Digital Transformation
Ministry of Economy and Environment
Ministry of Justice
Ministry of Finance
State Tax Service
Ukrainian Geological Survey

Completion time/period:
June 2026 - December 2027

Partners:
Energy Transparency Association (subject to consent)
other civil society organisations (subject to consent)
Multi-stakeholder group on the implementation of the EITI in Ukraine (subject to consent)
German Society for International Cooperation (GIZ) (subject to consent)
International Renaissance Foundation (subject to consent)
other international organisations, development partners engaged in international technical assistance projects (programmes) (subject to consent)

Delivery indication:
A draft bill has been drawn up and submitted to the Cabinet of Ministers of Ukraine for review.

4. Development of a communications strategy for the implementation of the EITI in Ukraine

Responsible agency:
Ministry of Energy
State Tax Service
Ukrainian Geological Survey
Ministry of Economy and Environment

Completion time/period:
June 2026 - December 2027

Partners:
Energy Transparency Association (subject to consent)
other civil society organisations (subject to consent)
Multi-stakeholder group on the implementation of the EITI in Ukraine (subject to consent)
German Society for International Cooperation (GIZ) (subject to consent)
International Renaissance Foundation (subject to consent)
other international organisations, development partners engaged in international technical assistance projects (programmes) (subject to consent)

Delivery indication:
The communications strategy for the implementation of the EITI in Ukraine has been developed and approved.