Discussion “Ukraine and the RGI: which solutions does the extractive industry require?” was held in Kyiv in the Parliament Committee on Fuel and Energy Complex 19.07.2017

The purpose of the event is to present the Resource Governance Index – RGI 2017*, as well as the results of the prepared analysis made in order to identify the necessary changes in the Ukrainian legislation for further reformation of the extractive sector.

During the discussion, the participants discussed the reasons of the inefficiency of the Ukrainian legislation in extractive industry and explore possible solutions for previously identified problems. The results of this discussion will lead to the creation of a Roadmap for further reforms required to eliminate problems and clarify next steps for further development of legislation.

The event was attended by deputies of the relevant committees of the Verkhovna Rada, representatives of the Ministry of Energy and Coal Industry, the Ministry of Ecology and Natural Resources,National Secretariat UAEITI,  the Natural Resources Governance Institute (NRGI), extractive companies, specialised NGOs and leading mass media.

The 2017 RGI assesses how 89 resource-rich countries govern their oil, gas and mineral wealth.

The index composite score is made up of three components. Two measure key characteristics of the extractives sector – value realization and revenue management – and a third captures the broader context of governance — the enabling environment. These three overarching dimensions of governance consist of 14 subcomponents, which are calculated by aggregating external data and 149 questions.

Independent researchers, overseen by NRGI, in each of the 89 countries completed a questionnaire to gather primary data on value realization and revenue management. For the third component, the RGI draws on external data from over 20 international organizations. The assessment covers the period 2015-2016.

Ukraine’s oil and gas sector scores a weak 49 of 100 points and ranks 44th among 89 assessments in the 2017 Resource Governance Index (RGI). Satisfactory performance in the value realization component is offset by poor performance in the revenue management component. Ukraine ranks fourth among nine countries in the Eurasia region covered in the Index, following Mongolia, Kazakhstan and the Kyrgyz Republic. Ukraine performs best in the value realization component, with a satisfactory score of 61 of 100 points, and worst in revenue management, with a poor score of 40 of 100 points. Ukraine’s enabling environment score of 45 of 100 points is due to political instability and failing control of corruption.

You can read more about RGI 2017 :

Resource Covernance Index. Ukraine

Resource Governance Index Home Work for Ukraine