Statement by Prime Minister of Ukraine Denys Shmyhal at a Government session

Dear colleagues, fellow Ukrainians!

Today is the 422nd day of the full-scale war. Ukraine is fighting. Ukraine is winning. Ukraine is changing and starting to rebuild.

We do not stop the reforms for the rapid transformation of our country. The Government has identified 10 priority reforms for the near future. This is what is needed to bring our victory closer, to restore and build a strong European Ukraine.

Today, the focus is on comprehensive reform of the energy sector.

Energy is one of the five key sectors of recovery identified for this year, and at the same time one of the ten priority areas of reform.

Let’s look at the current situation. The heating season is over. It was a difficult winter. The hardest in our history. We have survived. Now we can say with certainty that we have won the battle for light and heat. I am very grateful to the power engineers, air defence forces, rescuers and all those who worked together with the Government as a single team for this victory on the energy front.

How do we end this heating season? We have a surplus of power in the energy system. 1.4 million tonnes of coal in stock. 8.5 billion cubic metres of gas in storage. Last year we accumulated enough resources. This played an important role. Now we are starting to accumulate resources again for the next heating season.

We are approaching our work systematically. We have seven specific tasks in the energy sector with different deadlines, but all of them are of key importance for Ukraine’s energy security and energy independence.

First. Restoration of the energy system. russian terrorists have destroyed a lot. Therefore, a large-scale campaign to repair, rebuild, construct, reconstruct and protect our energy system is already underway. This applies to both generation and distribution. The reconstruction will be combined with modernisation. We are attracting resources and expertise from partners. The Deputy Prime Minister for Restoration and the Minister of Energy will soon present a detailed plan on how this restoration, reconstruction and protection will take place.

Second. Decentralisation of the power system. We will develop small-scale generation, which is less vulnerable to enemy attacks. More gas-turbine and gas-piston plants that can be rapidly deployed. Introduction of energy storage facilities that accumulate energy. An element of decentralisation will be to encourage Ukrainians to install solar panels along with individual energy storage units. We will use microgrid and smart grid technologies. This will allow us to better control the load on the power system and respond more effectively to challenges.

Third. Integration with the EU. Ukraine’s power system is already part of the European one, but there is still work to be done before full integration.

Firstly, the implementation of EU directives. Secondly, market mechanisms that ensure transparency and a fair approach. And thirdly, increasing physical capacities for exporting and importing electricity with the EU. We have a huge potential in this field. Energy will become one of the drivers for the future recovery and growth of the Ukrainian economy.

The fourth task. Development of clean, green generation. Ukraine will be part of the EU, and therefore part of the European Green Deal. We will continue to use reasonable approaches to stimulate and support green power generation. We will use auctions, certificates of origin and other tools to increase the share of green generation in Ukraine.

The fifth task. Domestic gas production. Firstly, stabilisation, then a significant increase. We rank second in Europe in terms of gas deposits. And we must ensure that we are fully self-sufficient in gas. We are actively attracting private investors, including the world’s largest companies. We have a working instrument, the Production Sharing Agreement (PSA), and 10 fields are already operating under this mechanism. We are eliminating the scheme of dormant licences. We are developing electronic auctions. We plan to become the “gas safe” of Europe, as Ukraine has the largest gas storage facilities on the continent.

The next steps in the future include the development of the Black Sea gas shelf and deposits in the Carpathians, increasing biomethane production and integration into the European hydrogen infrastructure.

Sixth. Energy efficiency. Reducing energy consumption in homes, public buildings and throughout the country. The key task is thermal modernisation. The KPI we are currently setting for the responsible teams is to reach the level of 1,500 apartment buildings and 1,000 public buildings per year. We are solving two issues at once. The first is to reduce energy consumption across the country. The second is a positive effect for each individual household.

The seventh task. Oil refining and oil transportation. Ukrainian oil pipelines are operating efficiently, and we will store oil reserves in newly built reliable storage facilities. The use of the latest technologies for geological exploration will help increase oil production. And the modernisation of oil pipelines will open up the possibility of transporting oil to Germany, Hungary, Slovakia, and the Czech Republic, with the option of importing it to strengthen Ukraine’s energy security.

A separate task, which includes many of the points mentioned above, is to prepare for the autumn and winter period. We are preparing for various scenarios. We are repairing the damaged facilities. We are building new ones. We are accumulating energy resources. We are mobilising assistance from international partners for all these purposes.

We have identified those responsible for each task. We have a roadmap. We have projects. We are building a modern energy system based on market rules for our energy independence.

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Today we have several decisions on the agenda related to the energy sector. First, utility tariffs. We have a moratorium on raising prices for gas, heat and hot water. Today, the Government is adopting a resolution prohibiting the collection of utility debts from internally displaced persons who have left the temporarily occupied territories or territories where hostilities are taking place. This refers exclusively to debts that have accumulated since the start of the full-scale russian invasion. This is a fair decision that will be in force until the end of martial law.

At the same time, we are approving a draft law on compensation for losses to companies that supply electricity, gas, water and heat to the frontline or temporarily occupied territories. Soon we will liberate all our lands, and therefore it is important to preserve the ability of critical infrastructure to operate in wartime conditions.

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At one of the last governmental meetings, I voiced clear priorities of our Government in the area of veterans’ policy. One of these priorities is the reform of medical and social expert commissions and military medical commissions. Today, we are adopting a resolution to simplify the travel of our wounded soldiers for treatment abroad. Now they will be able to receive such a referral at the medical facility where they are undergoing treatment or rehabilitation. No delays, no queues, no bureaucracy.

In conclusion. Today, the Government will make an important decision for thousands of Ukrainians whose homes have been damaged by the war.

We are adopting a resolution that will allow us to begin testing the eRestoration programme, which will allow people to receive funds to repair their homes. We are testing it to avoid mistakes and misunderstandings in the future.

The service will be available in Diia starting May 10. The allocated funds can be spent on construction materials or contractor services. The amount of compensation will be determined by a special commission, and the funds will be transferred to a special bank account. The priority for compensation will be given to combatants, families of fallen service members, Ukrainians mobilised in the Army, large families and people with disabilities.

Deputy Prime Minister for Restoration Oleksandr Kubrakov and the Ministry of Digital Transformation will communicate all the necessary details of the programme.

Each restored house is a step towards the large-scale reconstruction and revival of Ukraine.

So, let’s mobilise our forces and resources to achieve the victory.

Thank you for your attention! Glory to Ukraine!