WASHINGTON, D.C. - The United States Congress passed major legislation outlining the policy of the United States to support the government of Ukraine. The ten sections of the Statement of Policy are found in Section (a) below.

In Section (b), found below, the legislation states: 'The Secretary of State, in coordination with the Administrator of the United States Agency for International Development and the Secretary of Energy, shall work with the Government of Ukraine to develop a plan to increase energy security in Ukraine, increase the amount of energy produced in Ukraine, and reduce Ukraine’s reliance on energy imports from the Russian Federation."

The energy security plan developed under paragraph (1), found below, shall include strategies for market liberalization, effective regulation and oversight, supply diversification, energy reliability, and energy efficiency, such as through supporting the twelve items shown below [A through L]. 

The UKRAINIAN ENERGY SECURITY section of the law is found in the U.S. Code, Title 22, Chapter 102, Subchapter II, paragraph 9546, of the Countering America's Adversaries Through Sanctions Act, Public Law 115-44 (CAATSA) signed by the President of the United States on August 2, 2017, https://www.law.cornell.edu/uscode/text/22/9546.

UKRAINIAN ENERGY SECURITY ------

(a) STATEMENT OF POLICY 

It is the policy of the United States

(1) to support the Government of Ukraine in restoring its sovereign and territorial integrity;

(2) to condemn and oppose all of the destabilizing efforts by the Government of the Russian Federation in Ukraine in violation of its obligations and international commitments;

(3) to never recognize the illegal annexation of Crimea by the Government of the Russian Federation or the separation of any portion of Ukrainian territory through the use of military force;

(4) to deter the Government of the Russian Federation from further destabilizing and invading Ukraine and other independent countries in Central and Eastern Europe and the Caucuses;

(5) to assist in promoting reform in regulatory oversight and operations in Ukraine’s energy sector, including the establishment and empowerment of an independent regulatory organization;

(6) to encourage and support fair competition, market liberalization, and reliability in Ukraine’s energy sector;

(7) to help Ukraine and United States allies and partners in Europe reduce their dependence on Russian energy resources, especially natural gas, which the Government of the Russian Federation uses as a weapon to coerce, intimidate, and influence other countries;

(8) to work with European Union member states and European Union institutions to promote energy security through developing diversified and liberalized energy markets that provide diversified sources, suppliers, and routes;

(9) to continue to oppose the NordStream 2 pipeline given its detrimental impacts on the European Union’s energy security, gas market development in Central and Eastern Europe, and energy reforms in Ukraine; and

(10) that the United States Government should prioritize the export of United States energy resources in order to create American jobs, help United States allies and partners, and strengthen United States foreign policy.

(b) PLAN TO PROMOTE ENERGY SECURITY IN UKRAINE -----
(1) In general ------

The Secretary of State, in coordination with the Administrator of the United States Agency for International Development and the Secretary of Energy, shall work with the Government of Ukraine to develop a plan to increase energy security in Ukraine, increase the amount of energy produced in Ukraine, and reduce Ukraine’s reliance on energy imports from the Russian Federation.

(2) Elements -----

The plan developed under paragraph (1) shall include strategies for market liberalization, effective regulation and oversight, supply diversification, energy reliability, and energy efficiency, such as through supporting—

(A)  the promotion of advanced technology and modern operating practices in Ukraine’s oil and gas sector;

(B)  modern geophysical and meteorological survey work as needed followed by international tenders to help attract qualified investment into exploration and development of areas with untapped resources in Ukraine;

(C)  a broadening of Ukraine’s electric power transmission interconnection with Europe;

(D)  the strengthening of Ukraine’s capability to maintain electric power grid stability and reliability;

(E)  independent regulatory oversight and operations of Ukraine’s gas market and electricity sector;

(F)  the implementation of primary gas law including pricing, tariff structure, and legal regulatory implementation;

(G)  privatization of government owned energy companies through credible legal frameworks and a transparent process compliant with international best practices;

(H)  procurement and transport of emergency fuel supplies, including reverse pipeline flows from Europe;

(I)  provision of technical assistance for crisis planning, crisis response, and public outreach;

(J)  repair of infrastructure to enable the transport of fuel supplies;

(K)  repair of power generating or power transmission equipment or facilities; and

(L)  improved building energy efficiency and other measures designed to reduce energy demand in Ukraine.

(3) REPORTS -----

(A) Implementation of Ukraine Freedom Support Act of 2014 [22 U.S.C. 8921 et seq.] provisions

Not later than 180 days after August 2, 2017, the Secretary of State shall submit to the appropriate congressional committees a report detailing the status of implementing the provisions required under section 7(c) of the Ukraine Freedom Support Act of 2014 (22 U.S.C. 8926(c)), including detailing the plans required under that section, the level of funding that has been allocated to and expended for the strategies set forth under that section, and progress that has been made in implementing the strategies developed pursuant to that section.

(B) In general -----

Not later than 180 days after August 2, 2017, and every 180 days thereafter, the Secretary of State shall submit to the appropriate congressional committees a report detailing the plan developed under paragraph (1), the level of funding that has been allocated to and expended for the strategies set forth in paragraph (2), and progress that has been made in implementing the strategies.

(C) Briefings -----

The Secretary of State, or a designee of the Secretary shall brief the appropriate congressional committees not later than 30 days after the submission of each report under subparagraph (B). In addition, the Department of State shall make relevant officials available upon request to brief the appropriate congressional committees on all available information that relates directly or indirectly to Ukraine or energy security in Eastern Europe.

(D) Appropriate congressional committees defined

In this paragraph, the term “appropriate congressional committees" means—

(i)  the Committee on Foreign Relations and the Committee on Appropriations of the Senate; and

(ii) the Committee on Foreign Affairs and the Committee on Appropriations of the House of Representatives.

(c) Supporting efforts of countries in Europe and Eurasia to decrease their dependence on Russian sources of energy -----

(1) Findings

Congress makes the following findings:

(A) The Government of the Russian Federation uses its strong position in the energy sector as leverage to manipulate the internal politics and foreign relations of the

       countries of Europe and Eurasia.

(B) This influence is based not only on the Russian Federation’s oil and natural gas resources, but also on its state-owned nuclear power and electricity companies.

(2) Sense of Congress

It is the sense of Congress that—

(A)  the United States should assist the efforts of the countries of Europe and Eurasia to enhance their energy security through diversification of energy supplies in

       order to lessen dependencies on Russian Federation energy resources and state-owned entities; and

(B)  the Export-Import Bank of the United States and the Overseas Private Investment Corporation should play key roles in supporting critical energy projects that

       contribute to that goal.
(3)  USE OF COUNTERING RUSSIAN INFLUENCE FUND to provide technical assistance -----

Amounts in the Countering Russian Influence Fund pursuant to section 9543 of this title shall be used to provide technical advice to countries described in subsection (b)(1) of such section designed to enhance energy security and lessen dependence on energy from Russian Federation sources.

(d) Authorization of appropriations -----

There is authorized to be appropriated for the Department of State a total of $30,000,000 for fiscal years 2018 and 2019 to carry out the strategies set forth in subsection (b)(2) and other activities under this section related to the promotion of energy security in Ukraine.

(e) Rule of construction -----

Nothing in this section shall be construed as affecting the responsibilities required and authorities provided under section 7 of the Ukraine Freedom Support Act of 2014 (22 U.S.C. 8926). (Pub. L. 115–44, title II, § 257, Aug. 2, 2017, 131 Stat. 931.)

LINKS:  https://www.law.cornell.edu/uscode/text/22/9546;  https://www.treasury.gov/resource-center/sanctions/Programs/Pages/caatsa.aspx
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U.S.-Ukraine Business Council (USUBC)
1030 15th Street, N.W., Suite 555 W, Washington, D.C. 

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