Lithuania and Ukraine Agreed to Cooperate in the Field of Energy

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2017 12 12

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On 8 December, during the visit to Vilnius by the Ukrainian President Petro Poroshenka, a memorandum of understanding (MOU) was signed on the cooperation between Lithuania and Ukraine in the field of energy.  In the presence of the presidents of both countries, the memorandum was signed by the Ministers of Energy of both countries, namely, Žygimantas Vaičiūnas and Ihor Nasalyk.

By their signatures the ministers endorsed the commitment to work together and share their expert experience in the field of decommissioning of nuclear power plants and to cooperate in developing biomass and low-capacity liquefied natural gas (LNG) markets in Ukraine by conceiving solar energy projects. 

“Similar challenges in the region, the experience gained, new and successfully implemented energy projects, new technology and innovation in the field of energy prompt Lithuania and Ukraine to open the topic of new projects in our bilateral dialogue. Lithuania has taken the direction of renewable energy sources and of innovation, it has developed new instruments for effective operation of energy source markets. We are ready to share our experience in this field with our European neighbour Ukraine which is now on the way of reforms. The today’s agreement marks the beginning of cooperation and draws clear practical directions,”  Žygimantas Vaičiūnas, Minister of Energy, said.

As he put it, one of the examples is the challenging project of decommissioning of Ignalina nuclear power plant which requires exclusively high competences. The experience gained by Lithuania is invaluable to Ukraine which is currently decommissioning and will decommission its nuclear power plants in the future.

One more area of cooperation included in the memorandum is the development of natural gas markets. Lithuania has an extraordinary experience in this field. It has built its experience of the area in recent years when the project of Klaipėda LNG terminal was implemented as well as the provisions of the EU third energy package, which helped Lithuania dramatically increase its  energy independence and enabled it to ensure competitive prices to consumers.

“Over the last several years, Lithuania has substantially reformed its power, natural gas and heating sectors. We have become more energy independent because we have diversified our energy supply sources, and this, in turn, has brought more competition to the energy market and drastically reduced prices to consumers. Today Ukraine is facing the same challenges with regard to natural gas supply that Lithuania was facing a few years ago, “ Mr Vaičiūnas noted.

This year, low capacity LNG cargo handling activities have been launched, regional natural gas market of all the Baltic countries has been developed as well as the LNG exchange – these are a few more fields in which the Ukrainian energy specialists will get and broaden their experience from the Lithuanian energy companies and experts.

Yet another important area of bilateral cooperation is the development of the biomass market. The Lithuanian biofuel exchange Baltpool is one the most advanced exchanges in the worlds. It is a unique trading platform which enables fast, transparent and secure purchases and sales of biomass. The Ukrainian energy specialists find it relevant to take over the experience of founding and developing such exchange.

The signed MOU stipulates that the ministries of the countries and energy companies will share their know-how and initiate new projects in all the aforementioned fields. It is planned to organise bilateral meetings of energy specialists and companies in developing joint technical projects or consultations with regard to legal regulation. 

Today, there is also a bilateral economic forum of Lithuania and Ukraine taking place. The forum will mostly focus on renewable energy and cooperation opportunities in the sectors of biomass and solar energy.

The memorandum of understanding can be found here.