Ukraine's PM: Mutual effort for energy efficiency in Eastern Europe

Ukraine is one of NIB’s nine focus countries outside its member states. Mykola Azarov, Ukraine’s Prime Minister, sees possibilities in the field of energy.

NIB is one of the international financial institutions entitled to grant long-term investments within the framework of the E5P (Eastern Europe Energy Efficiency and Environmental Partnership). How could this partnership be of use in Ukraine?

“Ukraine uses over three times more energy per unit of its GDP than the average EU country, and billions of dollars are needed for long-term energy projects. As NIB gives preference to ecofriendly investments that reduce transborder pollution in member countries and in neighboring regions, I see our cooperation within the framework of the E5P as mutually beneficial.

In 2008, the State Export-Import Bank of Ukraine and NIB concluded a US $50 million loan agreement for the implementation of environmental projects. The proceeds of the loan were committed to fund projects for reequipping and modernising domestic industrial facilities, reducing energy consumption rates and cutting down hazardous emissions. We hope that NIB will continue to finance our efforts to become energy efficient.”

What role is there for international financial institutions such as NIB in your country’s economic development?

“For countries with a transition economy, the global financial crisis made 2009 an extremely difficult year. In Ukraine, the interest of commercial banks in energy efficiency projects waned both at the municipal and the national level due to a tariff policy on gas. The population paid only one-fourth of the price of gas, while the previous government had concluded a 10-year contract with Russia under which the gas price increased sharply.

In such situations cooperation with international financial institutions is invaluable.”

What areas have the most potential for cooperation between Ukraine and the Nordic and Baltic countries?

“Renewing our country’s economy means attracting not less than a trillion US dollars over the next 10 years. Apart from energy, transport and infrastructure are vital. There are, for example, 100 large bridges that need to be modernised, not to mention the need for new bridges, which will take years to construct. Another area is the agri-industry, where, for example, technologies for the manufacture of eco-friendly food products are needed. High-tech and IT is another sector.

We want to make Ukraine Europe’s most attractive investment climate.”