Energy, mining and oil and gas sector – the most susceptible to bribery sectors in the world
Rating of the most corruption-prone areas of extraction - 2010 is the best reflection of the international relevance of such phenomena as the Extractive Industries Transparency Initiative (EITI). This independent standard voluntarily supported by the UN, the EU, “Big Eighth”, the African Union, the OECD. Activity under the Initiative is supported and financed by the EBRD, the European Investment Bank, the IMF, the World Bank and Group KfW.
More than 80 investment funds whose sum total is more than $16 trillion also supported the EITI. Obviously, joining the Initiative provides participating countries not only with image dividends, but also with quite tangible financial benefits. And today Transparency Initiative has moved beyond the extractive industries, spreading to the transit of energy and other related, but no less significant, areas.
The essence of this phenomenon is that the EITI requires transparency of payments made by companies, and revenues, connected with the development of national natural resources, that governments receive. Ukraine declared its desire to join the initiative in 2009, however, since that period no significant actions were made in this direction.
In DMS, Donetsk, they watch with great attention over the course of events on the accession of Ukraine to the EITI, as in Donetsk holding they are confident that the Initiative’s benefits are unquestionable even at the level of private business unit. The Corporation specialists with leading domestic and foreign experts have developed a number of investment projects, in particular in the field of coal mining (Lugansk region) and degassing of coal seams (Donetsk region). Implementation of these programs will not only produce a quality source of energy, but also improve the employment that is especially topical for traditional mining region called Lutugin, Lugansk region, which is experiencing hard times. But it is not possible without investments. Therefore, the Corporation welcomes any measures taken by the government to increase investors' confidence in our country.
The strategic importance of the sphere of extraction for any country is difficult to overestimate: on the one hand, this is a huge share of budget replenishment, and on the other, the importance of good disposition of subsoil. But that's why it should be as transparent as possible. This thesis fully confirms the positive experience of 33 countries and more than 50 world's largest energy companies that remuneratively joined the initiative. First of all, the member states were able to significantly increase the level of international credibility, the confidence of potential investors that encouraged investments.
Another important precedent was created: the information, provided by companies and the government to produce a transparent report on the receipt and use of the budget, is not a commercial or state secret. This, for example, was identified by the Norwegian parliament during the first stage of joining the EITI. Time will show how realistic it is to make Ukrainian energy area transparent. However, the optimistic side is that the Initiative has not been forgotten by the Ukrainian government and the international community wants to see our country in the number of participants.
In Europe they believe that Kiev accession to the EITI will be an important step towards full integration into the European energy market. Transparency Initiative provides an opportunity to create mutually beneficial situations for delivery of raw materials to Europe, and is also supported within the EU Raw Materials Initiative. Ukraine is one of the key energy partners of the EU, and from 1 January 2011 is a full member of the Energy Community. However, the actual content of this status will be possible after ensuring adequate access to market information.
“We believe that joining the Transparency Initiative will allow Ukrainian business to develop in the same direction with the European and international business. For domestic companies that are willing to implement major infrastructure projects in the mining sector, but that do not have the full facilities and resources available, this is particularly important,”- said the vice president of commerce Oleg Kutyrkin. – “In the end, the activities in terms of EITI will attract significant international investment in exploration and extraction, and reduce Ukraine's dependence on expensive imports of energy.”
