Decision No 1/2019 of the EU-Ukraine Association Council of 8 July 2019 as regards the amendment of Annex XXVII to the Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Ukraine, of the other part [2019/1599]
Decision No 1/2019 of the EU-Ukraine Association Council of 8 July 2019 as regards the amendment of Annex XXVII to the Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Ukraine, of the other part [2019/1599]
THE EU-UKRAINE ASSOCIATION COUNCIL,
Having regard to the Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Ukraine, of the other part, and in particular Article 463 thereof,
Whereas:
The Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Ukraine, of the other part(1) (‘the Agreement’) was signed on 21 March and 27 June 2014 and entered into force on 1 September 2017.
The Preamble to the Agreement recognises the Parties' desire to move the reform and approximation process forward in Ukraine, thus contributing to the gradual economic integration and deepening of political association as well as to achieving economic integration through extensive regulatory approximation. The Preamble also refers to the Parties' commitment to enhancing energy security by, inter alia, increasing market integration and regulatory approximation towards key elements of the EU acquis.
Furthermore, the bilateral Memorandum of Understanding on a Strategic Energy Partnership between the European Union and Ukraine of 24 November 2016 recognises that the goal of intensified cooperation in the energy field and of energy sector reform is full integration of the energy markets of the Union and Ukraine.
Article 1 of the Agreement refers to the objective of supporting Ukraine's efforts to complete the transition to a functioning market economy by means of, inter alia, the progressive approximation of its legislation to that of the Union.
According to Article 273 of the Agreement, the Parties are to adapt their legislation, as referred to in Annex XXVII to the Agreement, in order to ensure that all conditions for transport of electricity and gas are objective, reasonable, transparent and non-discriminatory.
Furthermore, with a view to making progress towards market integration, Article 337 of the Agreement provides that the Parties continue and intensify their cooperation on energy matters, including through gradual approximation in the energy sector.
Article 341 of the Agreement sets out that gradual approximation in the energy sector shall proceed in accordance with a timetable as set out in Annex XXVII to the Agreement.
Article 474 of the Agreement reiterates the general commitment of Ukraine to carry out gradual approximation of its legislation to Union law, including in the energy sector.
The EU acquis in the energy sector has substantially evolved since the conclusion of negotiation of the Agreement, as have Ukraine's obligations arising from the implementation of the Agreement and its membership of the Energy Community Treaty. This evolution needs to be reflected in Annex XXVII to the Agreement which should therefore be updated.
Article 475 of the Agreement defines in general terms the monitoring of progress in the approximation of Ukrainian law to Union law, including aspects of implementation and enforcement. It provides that the reporting and assessment process will take into account specific modalities defined in the Agreement or decisions by the institutional bodies established under the Agreement.
In order to ensure more effective implementation of reforms by Ukraine, it is necessary to strengthen the monitoring mechanism for energy sector reform so that the reforms achieved have an irreversible character and contribute thereby in a lasting way to the modernisation of the energy sector.
Pursuant to Article 463(1) and (3) of the Agreement, the Association Council has the power to take decisions for the purpose of attaining the objectives of the Agreement. In particular, it may update or amend the Annexes to the Agreement, taking into account the evolution of Union law and applicable standards set out in international instruments deemed relevant by the Parties.
The Association Council is therefore to amend Annex XXVII to the Agreement in order to provide for more detailed rules for monitoring the approximation of Ukrainian law to Union law in the energy sector. To that end, appropriate provisions strengthening the monitoring process should be included in Annex XXVII to the Agreement,
HAS ADOPTED THIS DECISION:
Article 1
Annex XXVII to the Agreement is replaced by the Annex to this Decision.
Article 2
This Decision shall be published in the Official Journal of the European Union and in the Official Journal of Ukraine.
Article 3
This Decision shall enter into force on the date of its adoption.
Done at Brussels, 8 July 2019.
For the Association Council
The Chair
V. Groysman