Kharkiv Region Activities Trained in Monitoring of Budget Processes Related to Payments by Extractive Companies

Kharkiv Region Activities Trained in Monitoring of Budget Processes Related to Payments by Extractive Companies
22 September 2016
Kharkiv Region Activities Trained in Monitoring of Budget Processes Related to Payments by Extractive Companies
   On 18 September, members of the NOVA Energia NGO conducted a seminar ‘Extractive Industries Transparency Initiative (EITI): Effective Interaction at the Local Level’ for civil activists from the Kharkiv region. Official inquiries and information requests by citizens are important components of public influence on transparency in extractive operations. The rules and the specifics of their preparation have been explained to the seminar participants by experts.
   In turn, the civil activists of the Kharkiv region shared their own experiences, spoke about hidden pitfalls, and were developing their own strategy of EITI implementation at the local level.
“The Yuzivska block and the prospects for the production of unconventional (shale) gas remain the most problematic issues in the region,” says Vitalii Filenko, chairman of NOVA Energia NGO. “While it was difficult but still possible to work in a constructive manner with Shell, the position of the Dutch Yuzgas B. V. Company still remains a mystery.”
 (Reference: Yuzgas has won a tender for extraction of shale gas within the Yuzivska Block in the east of Ukraine, where the Dutch-British oil and gas Shell company planned to operate originally. In its bid, the company undertakes to drill 15 exploratory wells during the initial five years).
   The specifics of EITI implementation in Ukraine are that it not only covers the hydrocarbon extraction activities, but also the transportation of hydrocarbons. As part of the seminar, the partic
ipants visited the Borova compressor station of the Soyuz gas main (Orenburg – state border), an export pipeline used to deliver gas from the Orenburg gas condensate field  in Russia to Central and Western Europe.
   This event was made possible thanks to support of the American People provided through the USAID Municipal Finance Strengthening Initiative (MFSI-II) Roll-out Project for the purpose of assisting in implementation of the ‘Extractive Industries Transparency Initiative (EITI) in Ukraine’ component.