Policy Papers

• 03.10.2014

  Improving gas transmission network regulation in Ukraine by implementing Energy Community rules - a tailor made proposal

  (Code:PP_03_2014)

  Gas transit through Ukraine and gas imports by Ukraine are decreasing. The pipeline system is ageing and the current regulatory framework does not meet the European standards. In this context, the current organisation of the Ukrainian gas transmission system is revealing its substantial weaknesses: The high degree of government intervention in determining access conditions and tariffs is scaring off (potential) users and the lack of a sufficient and predictable income stream prevents long-term investments into the infrastructure. One key question when discussing reforming the regulatory framework is how gas transmission tariffs are structured and determined. The tariffs determine the business case for the operator and provide incentives for modernisation and efficient operation.

  Authors:  Georg Zachmann, Sophia Ruester
  Tags:  German Advisory Group
• 01.09.2014

  Ukrainian Machine Building: Strategic options and short term measures in view of trade disruptions with Russia

  (Code:PP_02_2014)

  Ukraine faces the possibility of major trade disruptions with Russia due to the current political tensions. The machine building sector is most exposed to the Russian market among all Ukrainian sectors, with 32% of output being exported to Russia. For this reason, the focus of the present paper is on this sector.

  Authors:  Kovalchuk Artur, Naumenko Dmytro, David Saha, Ricardo Giucci
  Tags:  German Advisory Group
• 03.02.2014

  Evaluating the options to diversify gas supply in Ukraine

  (Code:PP_01_2014)

  Ukraine is economically dependent on natural gas imports from Russia. This allows Russia to arbitrarily set the price or demand for economic (and political) concessions. In the past, Ukraine was able to use its significant role as a transit country for Eurasian gasto Europe to, nevertheless, negotiate relatively moderate prices. But this role isvanishing. After the completion of the first two strings of Nord Stream, 64% of theexports to Europe could circumvent Ukraine. If either South Stream or the next twostrings of Nord Stream are completed, Ukraine could be fully circumvented.

  Authors:  Georg Zachmann, Науменко Дмитро
  Tags:  German Advisory Group