The EU-Ukraine Association Agreement (AA), which includes a Deep and Comprehensive Free Trade Area (DCFTA), was signed on 21 March 2014 in Brussels. On 16 September 2014, the AA was simultaneously ratified by the European Parliament and the Verkhovna Rada of Ukraine. The AA includes strong provisions on energy cooperation as well as several commitments by Ukraine to increase energy security, steps to radically reform the energy sector to make it more efficient and attractive for investors, and to develop competitive, transparent and non-discriminatory energy markets in line with EU acquis.  

The AA has two energy-related chapters: Chapter 11 on trade related energy and Chapter 1 on energy cooperation including nuclear issues under the Title V ‘Economic and Sector Cooperation. This is complemented by Annex XXVII which lists energy-related legislative acts of the EU which Ukraine commits to adopt and implement. On 24 November 2016, the Memorandum of Understanding on a Strategic Energy Partnership was signed. It provides a basis for the integration of Ukraine’s energy market with that of the EU. In 2019, the energy Annex XXVII to the AA was amended to reflect the evolving EU acquis and to strengthen the monitoring of the adoption and implementation process. Ukraine is now asked to consult the draft legislation related to the implementation of the EU energy acquis in the framework of the AA with the European Commission before it enters into force. 

The specific objective of this assignment was to support the Contracting Authority with a) market analysis and b) compatibility assessments with EU acquis of Ukrainian (draft) legal acts issued by the Ukrainian Parliament and the Cabinet of Ministers of Ukraine in the energy sector under Annex XXVII namely: Electricity, gas, oil, energy infrastructure, energy efficiency, exploration of hydrocarbons, eco-design, nuclear safety, and related urgent information exchange mechanisms, radiation protection, safe management of spent fuel and radioactive waste, and supervision and control of shipments of radioactive waste and spent fuel. 

Under the provisions of Annex XXVII, the Ukrainian Government has the obligation to notify the European Commission and to wait for the assessment results before putting the relevant law into force. 

• Conducted stakeholder consultations to identify main flaws, problems, and inconsistencies of Ukrainian energy law 
• Conducted compliance gap reviews and compatibility (legal) assessments against EU energy acquis of Ukrainian (draft) legislation in the energy sector and provided a legal opinion on compatibility 
• Conducted market analysis of the Ukrainian energy market with particular focus on: gas and gas transmission; electricity and renewables; and nuclear materials supply
• Conducted the formal meetings with the Contracting Authority and Government in order to discuss draft legislation
• Market analysis of the Ukrainian energy market to provide the Contracting Authority with a high level overview and background on ongoing developments (gas and gas transmission, electricity and renewables, nuclear material supply).