Statement on renewable energy sector crisis in Ukraine

Statement on renewable energy sector crisis in Ukraine

Canada-Ukraine Chamber of Commerce (CUCC) follows a dialogue between the Government of Ukraine and representatives of a green energy sector (RES), including foreign investors in this field, among whom are members of our Chamber in respect to the possibility of unilateral retroactive review of so-called «green tariffs.»

We are firmly convinced that Governments’ actions that might lead to a drastic change in any sector of business, in particular one that is sensitive and with a high level of foreign investor involvement as a green energy sector, require well balanced and thoroughly analyzed approaches. In this respect, proper communication of possible or planned government decisions and/or actions to a wide array of stakeholders is crucial.

The retroactive approach is not an acceptable solution to any issues, including regulatory, and especially those that lead to worsening of conditions for subjects of implemented changes. It also does not meet an established common international and Ukrainian practice. Once and if implemented, such amendments will draw the attention of the international business community, decrease investment attractiveness of the country and will lead to worsening of business conditions for existing RES producers. It also will not serve the purpose of often-stated priorities of the new government to attract foreign investments.

With this statement, CUCC is joining the calls of American Chamber of Commerce and US-Ukraine Business Council to Ukrainian Government to discuss RES-sector suggestions on (1) outstanding financial liabilities resulting from the inability to pay by State Enterprise “Guaranteed Buyer”, (2) implementation of the appropriate mechanism of RES producers reimbursement for generated energy and (3) finalize and sign mutually beneficial Memorandum of understanding between the Government of Ukraine and RES business community.

June 10th, 2020

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