Extractive Industries Transparency Initiative (EITI) – an independent and freely supported at the international level standard of transparency, which is being implemented in 51 countries and includes countries such as Norway, UK, Germany, and others.
The purpose of EITI implementation in Ukraine is to ensure transparency in the management of natural resources and disclosure of government revenue from the mining sector, primarily for the oil and gas sector companies, as well as coal and iron ore sectors. The mechanism of action of the standard is that mining companies publish information about payments to the budget and state authorities and the Government publishes the amount of revenues from extractive companies. The data compares annual report of the National EITI and accompanied by an international expert assessment. This process is controlled by a Multi-stakeholder group (MSG), consisting of representatives of the Government, extractive companies and the civil society.
In Ukraine, the authority responsible for EITI implementation and preparing reports is Ministry of Energy and Coal Industry. For the purpose of effective EITI implementation in Ukraine, there was created the National EITI Secretariat in Ukraine, which is supported by the World Bank
The first national EITI Report in Ukraine was published on December 2015. This report covers the sector of oil and gas extraction and consists of two parts: the contextual information and information on reconciliation of payments. Contextual information includes general information about the industry, the largest oil and gas in Ukraine, the volume of hydrocarbon production, the figures for 2013 and historical information, data on stocks of basic hydrocarbons in Ukraine, substantial work on the exploration, conducted in 2013, oil transportation and gas extracted in Ukraine, monitoring subsoil, which granted special permission, the role of oil and gas industry in the economy of Ukraine, regulatory and fiscal regulation of oil and gas sector in Ukraine in 2013, and features floor ovazhennya public authorities and others.
The second national EITI report was published on February 2017. 2nd report includes data on 97 companies, which have been extracting gas, oil, coal, iron titanium and manganese ore in Ukraine in 2014 and 2015. In the second report, in addition to contextual information and information on reconciliation of payments there is also submitted additional data on the beneficial owners and more attention is paid to municipalities.
As part of improving regulatory support for EITI in Ukraine was developed and registered in the Verkhovna Rada the draft Law of Ukraine №6229 “On ensuring transparency in the extractive industries”, which also increase transparency in the extractive industries contribute to the fulfillment of Ukraine’s obligations under the Association Agreement between Ukraine on the one hand, and the European Union, the European Atomic energy community and their member states, on the other side.
It should be noted that EITI implementation in Ukraine is part of the Government Anti-Corruption Strategy for 2015-2017 years, Initiative is included in Partnership “Open Government” action plan for 2016-2018 years and is one of the international commitments of our country.