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18.09.2020

INDUSTRY ASSOCIATIONS HELD A PRESS CONFERENCE ON THE CONSTITUTIONAL APPEAL BY 47 UKRAINIAN MPs

On September 16, 2020, leading RES industry associations: Ukrainian Wind Energy Association (“UWEA”), European-Ukrainian Energy Agency (“EUEA”), Ukrainian Association of Renewable Energy (“UARE”) as well as Solar Energy Association of Ukraine (“ASEU”) conducted a press conference “Ukraine's “green” energy is under threat! Who wants to cancel “green” tariffs in the Constitutional Court?”. Law Firm Arzinger, which represents RES associations’ interest, also participated in the press conference.

In August 47 Members of the Ukrainian Parliament appealed to the Constitutional Court to declare the introduction of "green" tariff as unconstitutional. In early September 2020, UWEA, EUEA and UARE applied to the Constitutional Court of Ukraine on possibility to participate in the constitutional proceedings initiated by 47 MPs of Ukraine to declare some provisions of the Law of Ukraine No 555-IV “On Alternative Sources of Energy” dd 20.02.2003 and the Law of Ukraine No 2019-VIII “On Electricity Market” dd 13.04.2017 as unconstitutional.

During the press conference, representatives of the “green” energy market analyzed the negative impact on business and investment attractiveness of Ukraine should the Constitutional Court of Ukraine rule in favour of opponents of “green” energy.

In his presentation, Andriy Konechenkov, the Chairman of the UWEA Board, noted the active development of the modern Ukraine`s RES sector in comparison to any other branch of the economy: “The current installed RES capacities in Ukraine has reached 7.2 GW. The “green” energy sector is the largest investor in the country and a taxpayer to the state budget of Ukraine. In particular, over the last 10 years, the industry has attracted more than 10 billion euros of investments and has paid more than UAH 20 billion of taxes in 2019 only.

Andriy Konechenkov considered the constitutional appeal by 47 MPs as an attempt to demonstrate a position against European approach to the nation’s development, as political pressure on the industry: “A significant number of companies, which are supported by individual oligarchs, continue to use so-called cheap electricity for their business, turning a blind eye to the development of clean energy and all conditions for improving the environmental conditions in our country. So, it looks like all world is moving in one direction, while Ukraine -  in a completely different one,”  stated Andriy Konechenkov.

Managing partner of Arzinger, Timur Bondarev, hoped that the Constitutional Court would suport Ukraine and its further development, and  not protect oligarchs. Yaroslav Cheker, Counsel at Arzinger, noted that renewable energy associations represent 99% of the "green" electricity market in Ukraine, so lawyer trust that the court will accept the application by the RES associations and take into account the arguments of the RES market participants.