L’Ukraine obtient un score élevé dans la mise en œuvre de l’ITIE

The Secretariat’s assessment is that Requirement 1.5 is fully met, as in the previous Validation. The MSG’s ‘Outcomes and impact’ template and the MSG’s self-assessment considers the objective of Requirement 1.5 is fully met. While the 2024-2025 work plan is still in drafting, the International Secretariat considers that on balance, the objective is fully met. Ukraine regularly published its work plan up until 2023. In 2024, Ukraine EITI chose to integrate the draft 2024 work plan into a two-year work plan which was still in drafting during the consultation phase. Therefore, the only available work plan covers 2023. The objectives of the 2023 work plan are aligned with national priorities, particularly on SOE reforms, energy and critical minerals and seems to be the result of a broad consultative process. One of the activities include the disclosure of information on which types of minerals are the sources of production of critical raw materials that should be included in future EITI reports, in line with the national priorities of Ukraine and recent international debates. Activities are time-bound, and funding is clearly identified. Out of 40 tasks of the 2023 work plan, 60% of tasks were fully implemented, the rest being carried over to the next years. The current EITI Work Plan includes adapting the EITI Report of Ukraine to the requirements of the EITI Standard 2023, a deeper dive into integration of the EITI into government systems (for example in Anticorruption Government strategy , amendments to the EITI Law). It also includes a dedicated section on Outreach to the regions, with the launch of regional MSGs. An entire section of the work plan aims at resolving stakeholder’s capacity constraints, including workshops and trainings aimed at civil society and civil servants. Several activities aiming at strengthening systematic disclosures are grouped under the goal of integrating the EITI into government system. One of the pillars of the 2023 work plan (1.3) is dedicated to implementing the recommendations from the previous Validation and EITI implementation. It notes the need to adapt reporting templates for beneficial owners, as well as requiring more information on the partners of SOEs in joint ventures. Together with the annual progress report, the work plan describes the impact of the Russian invasion on planned activities and delays, as well as how the EITI has adapted to the physical risks and the safety of participants. In 2020, Ukraine EITI developed a monitoring and evaluation system, which recommends to evaluate the EITI in the country every three years.

The Secretariat’s assessment is that Requirement 7.1 is fully met. The MSG’s ‘Outcomes and impact’ template considers the objective of enabling evidence-based public debate is fully met. The International Secretariat recognises the efforts and the challenging context in which EITI implementation and communication took place since 2022, and considers the objective to be fulfilled. Despite the slight slowing down of dissemination efforts, the EITI managed to provide to key public relevant disclosures on the extractive sector and actively lobbied to lift restrictions on the publication of information due to martial law. The EITI Reports are comprehensible, actively promoted through varied channels including print, online and through active outreach), publicly accessible, with the exception of the two last latest EITI reports. The 2021 EITI Report is closed to the public, and parts of the 2022 report are redacted due to martial law. This hindered the contribution to public debate on the extractive industries in Ukraine, as reflected in the transparency requirements. The three stakeholder groups have actively contributed to dissemination of the EITI reports. Civil society advocated to lift martial law restrictions on data after a review that concluded more than 90% of classified information did not pose a security risk. In addition, most of the information on the extractive sector is disclosed through the national EITI open data portal, but not for 2022 due to martial law. Ukraine EITI has designed a video guide to promote the use of the data contained online. The EITI data portal provides the information in an accessible way and the data can be downloaded in open format. The EITI Reports and their summaries are published on the website of UA EITI. However, due to martial law restrictions, the access to the 2021 EITI Report is closed, and the 2022 Report is published with limited access, although the International Secretariat has had access to an unredacted version (see executive summary). On accessibility, the 2022 EITI Report has also been translated in English to facilitate access to international stakeholders. The UA EITI website is available in Ukrainian and in English. The EITI Portal considers the needs of visually impaired people. A hybrid format conference presenting the nine EITI Reports produced by Ukraine EITI was held in 2024, during which the summary information required by the EITI Standard was presented. In total, 13 events were held at the regional and national levels in 2023. This included a conference to celebrate the tenth anniversary of the EITI in Ukraine, which highlighted achievements and the regional dimension of EITI. For security and logistical reasons, most of the events were held online. The topics discussed at the meetings included data access from the EITI Portal, environmental aspects, energy transition and security, critical raw materials and the role of the EITI in ensuring transparency in community-based extractive industries. Ukraine EITI has developed a dedicated communications strategy to frame its outreach and dissemination efforts, which is encouraged by the Standard. Ukraine EITI appears to have driven the communication of relevant data to key stakeholders, as documented on the EITI website and the 'Outcomes and impact’ template for this Validation. There is also evidence of the MSG explicitly considering the information needs and access challenges of different stakeholder groups, and Ukraine appears to have prioritised outreach to civil society and journalists, including communities hosting extractive activities. For instance, Ukraine EITI and the NGO Nova Energy have developed a “rent calculator” that allows local stakeholder to see the amount of revenue transferred to their local government unit, although no data seems to be available yet. The implementation of the last EITI Ukraine work plan has highlighted the need to build the capacity of stakeholders at the national and regional levels, and stakeholder consultations emphasised the need for capacity building within government agencies and ministries in order to empower more use of EITI data and findings.

The Secretariat’s assessment is that Requirement 7.2 is mostly met. Stakeholder consultations and the Validation template did not highlight any particular concern related to the accessibility of the data for analysis. Given that several sections of the open data portal have been taken offline, the Secretariat’s assessment is that most aspects of the requirement have been addressed and that the objective to enable the broader use and analysis of information on the extractive industries has been mostly met. Ukraine EITI has agreed and published an open data policy. The 2022 EITI Report and its summary, payments and various 2022 annexes are available in excel format through the open data portal. In addition, most of the contextual data for the 2022 EITI Report and more recent years used to be available in various formats including .xlsx, .csv. json and .html. Because of restrictions due to the martial law, a significant share of open data dashboards has been taken offline, such as the contribution of the extractive industries to the economy (Requirement 6.3) and data on production (Requirement 3.2). Ukraine has also submitted its 2022 summary data file, although not published yet for confidentiality reasons.

The Secretariat’s assessment is that Requirement 7.3 is fully met. EITI Ukraine has made some progress in identifying and addressing the causes of information gaps or discrepancies in EITI implementation, and progress in responding to the recommendations from previous Validation. MSG mechanisms for following up on recommendations and discrepancies have been in place for several years, with notable results on SOE disclosures or the progressive inclusion of the uranium and titanium sectors. The recommendations have become a permanent tool for the EITI in Ukraine and a tool for governance reform in the country. Following the full-scale invasion and introduction of martial law, many disclosures have been halted or taken offline, effectively slowing the implementation of corrective actions. However, there has been progress on follow-up on recommendations stemming from EITI reports and implementation for most of the period under review. In its comments to the draft Validation Report, the MSG presented recent additional developments including the adoptions of amendments to the EITI law and the reporting templates. Thus, the Secretariat considers that the that the objective is fulfilled. Following the shrinking of resources of the Ukraine EITI national secretariat, the MSG seems to operate the mechanism for following up on recommendations from EITI Reports. The minutes of MSG discussions (such as the MSG’s 21 December 2023 meeting) describe the creation within the MSG’s of a working group to investigate and address the reasons for gaps in EITI reporting and the recommendations stemming from thematic studies and EITI Reports. In addition of the progress on corrective actions stemming from EITI implementation and Validation, there appears to have been follow-up on several EITI recommendations related to broader reforms, in particular related to SOEs, inclusion of uranium and titanium sectors and transportation revenues. The 2022 EITI Report provides a table listing the 20 recommendations from the 2020 and 2021 EITI Reports and an update on progress in their implementation to date. The table confirms that one of the recommendations has been fully implemented, with seven being under implementation and 12 not implemented at all. Another set of recommendation from the consultant who prepared the report to improve future EITI reporting includes 19 other recommendations, covering most of the transparency requirements. Activities to implement most of these recommendations are included and budgeted in the Ukraine EITI workplan, currently in draft. There is further evidence of measures taken by the MSG to follow-up on implementation gaps after the publication of the 2022 EITI Report in MSG meetings minutes, with letters sent and meeting organised with key government agencies and departments. The 2023 work plan and the 2024-2025 draft work plan aim to improve the follow-up on recommendations from EITI implementation and reporting. There appears to be a concrete mechanism to include the result of this work into the future draft work plans, and activities and reports published in previous years. The evolution of the EITI data portal directly addresses identified challenges. One of the central recommendations stemming from the 2023 work plan and MSG meetings relates to capacity building for stakeholders, in particular civil society from national and local communities.

The Secretariat’s assessment is that Requirement 7.4 is fully met. The MSG has undertaken efforts to regularly review the outcomes and impact of the EITI through its progress reports, up until 2023. Albeit several activities have been cancelled, the Secretariat considers that the objective of regular public monitoring and evaluation of EITI implementation is fulfilled. Stakeholders consulted did not express views on progress towards the objective. The 2023 annual progress report (APR) was published in September 2024 and provides recommendations for improving EITI implementation, particularly in terms of stakeholder engagement as well as communications and dissemination activities. It includes a summary of activities and an overview of progress towards each EITI Requirement. According to the section IV of the APR, delays and cancellations of several activities were due to the impact of the invasion and constraints in government funding. The 2023 APR provides an assessment of progress towards each EITI Requirement, but not of steps taken to exceed EITI Requirements, in accordance with Requirement 7.4.a. ii. Both the 2023 APR and the three EITI Reports published since the last Validation of Ukraine provide an overview of follow-up on recommendations and the status of the past EITI recommendations. (see Requirement 7.3). The MSG does not seem to publish annually its own self-assessment of follow-up on past EITI recommendations. The 2023 APR includes a detailed account of the impact of the EITI on natural resource governance and lists efforts to expand the scope of EITI implementation to increase stakeholder engagement in accordance with Requirement 7.4.a.v. An important aspect of EITI implementation in 2022 was the assessment of losses and damage caused by Russia's invasion. The Energy Transition Report prepared by a consultant contained a relevant section dedicated to these issues. However, there does not yet appear to be a publicly accessible narrative overview of the MSG’s assessment of outcomes and impact of the EITI process, nor of plans to strengthen the EITI's impact. The MSG undertook consultations to give stakeholders an opportunity to provide feedback on the EITI process and the impact of the EITI and has reflected their views in the 2023 APR. In addition, stakeholders were able to provide some feedback on the EITI process during outreach events, and stakeholders engaged or close to the EITI process confirmed that their inputs had been reflected in the 2023 APR. The 2023 APR provides an overview of the outputs and outcomes of individual activities carried and addresses progress on the broader objectives set out in the work plan.

The Secretariat’s assessment is that Requirement 1.1 is fully met. Stakeholders consulted noted the extraordinary conditions of the period under review, and explained the constraints under which the government was operating. Despite the weakening in the funding to the national Secretariat, the Secretariat’s assessment is that on balance the requirement’s objective of full, active, and effective government lead for EITI implementation has been fully fulfilled for the period under review. Government ministers have regularly expressed public support for the EITI in the 2020-2024 period. A senior government official has consistently been in place to lead EITI implementation, with changes in 2023. The government is fully, actively and effectively engaged in the EITI process. The Ukraine EITI secretariat, which had high capacity prior to the Russian full-scale invasion and commitment, is hosted under the Ministry of Energy. Government officials including the MSG Chair and officials have regularly intervened to resolve bottlenecks in EITI implementation, such as the new draft law passed to improve SOE disclosures (see Requirement 2.6). The government has played an active role in following up on EITI recommendations, including on the corrective actions from previous Validation. The government has provided consistent funding for EITI implementation, with the exception of the latest period due to the Russian invasion. It has funded the 2022 EITI Report (but not the 2023). The national Secretariat and EITI activities for 2022 and 2023 have been funded by the World Bank and a corporate donor. Relevant government entities and parliamentarians are represented on the MSG and regularly participate in all aspects of EITI implementation. Government agencies, including those not directly represented on the MSG, have been engaged in the provision of EITI data. Government MSG members have ensured regular outreach to agencies not directly represented on the MSG, including to solicit their input in the annual EITI work plan and the MSG’s review of outcomes and impact. There is evidence of regular use of EITI data by various government entities and officials, including in press statements and government reports, with a view to generating public debate. Government representatives have actively participated in Ukraine EITI outreach events including presentation of EITI reporting. There was consensus among stakeholders consulted that the government’s engagement at both political and operational levels was public and effective.

The Secretariat’s assessment is that Requirement 1.2 is fully met. The MSG’s ‘Stakeholder engagement’ template considers the objective fully met. In the context of the Russian invasion of Ukraine, the focus of industry engagement has been centred on providing data and attendance at MSG meetings, rather than other aspects of the EITI process such as outreach and dissemination. Most stakeholders consulted also considered that the objective was met. The Secretariat’s assessment is that the objective is fully met. The narrow focus of industry engagement in the EITI process seems mostly due to the exceptional circumstances. Strong mechanisms for coordinating the broader constituency’s engagement in the EITI process, including on dissemination and outreach (see Requirement 7.1), are in place. Industry representation on the MSG appears representative of the structure of the industry, with four members and four alternates each for the mining and petroleum sectors, including one representative from the union of artisanal miners and two members each from companies in oil and gas exploration and in production. The constituency extended its representation on the MSG to the state-owned enterprises (SOEs) since the previous Validation. The broader constituency has structured itself since Ukraine joined the EITI with a clear ToR for coordinating the constituency and sharing information. These appear to be broadly adhered to in practice, with evidence of WhatsApp and email communications from all industry MSG members in addition to in-person meetings. Companies’ submission to the ‘Stakeholder engagement’ template note the broader constituency’s input to the development of the annual EITI work plan (for instance the study on tax exemptions), the annual review of outcomes and impact and the EITI Report. There is evidence in the template of the engagement in capacity building activities, attendance at EITI Ukraine dissemination events, and systematic disclosures as well as driving outreach, dissemination and use of data by the industry constituency, prior to the invasion. The participation in outreach diminished following the invasion but continued. At the 2023 EITI Report launch, the Association of Gas Production Companies provided insights into the current extractive industry landscape. Industry representatives consulted confirmed that there had been weaknesses in the constituency’s engagement in all aspects of the EITI process, but that this was only concomitant to the targeting of their operations by Russia and the state of war. Nonetheless, the vast majority of mining and petroleum companies making material payments to government in 2021 have reported. There are meaningful systematic disclosures of information required by the EITI Standard by mining and petroleum companies operating in Ukraine, including SOEs. Overall, there do not appear to be any barriers to company engagement in any aspect of the EITI process, including reporting.

The Secretariat’s assessment is that Requirement 1.3 is fully met. There is full, active and effective engagement in all aspects of the EITI process by a large group of CSOs. The MSG’s ‘Stakeholder engagement’ template considers the objective fully met. Before and after the Russian invasion of Ukraine, civil society has been the main drive of EITI implementation in the country. Most stakeholders consulted also considered that the objective was met. The Secretariat’s assessment is that the objective is fully met. In its assessment on civic space, civil society did not identify a breach of the civil society protocol. Below is a brief summary of civic space indicators as they relate to Ukraine. Civicus Monitor (assessing state of civic space) ranks the civic space in Ukraine as obstructed. Freedom house rating remains broadly unchanged from 2021, when the previous Validation was undertaken, rating Ukraine as “partly free” with 51/100 points. Reporters without borders (RSF)’s press freedom index sees an improvement in Ukraine’s press environment from 61 (2023) to 65 (2023) points. It notes that the armed conflict unleashed by Russia is threatening the survival of the Ukrainian media. Nevertheless, there is evidence of robust and critical civil society public expression on all topics related to the EITI process. Stakeholders consulted unanimously agreed that civil society was free to engage on any area related to the oil and gas, mining and energy sector in Ukraine. In terms of operation, all CSOs engaged in the EITI process appear duly registered. Civil society in Ukraine appears to access foreign funding and cooperate with international organisations without constraints. With regards to association, civil society organisations have been active in organising themselves through WhatsApp groups and in-person meetings in 2020-2024. Civil society is clearly able to use the EITI process to access public decision-making and influence public policy making and debate in the wartime context. While government constraints on freedoms of expression and of operation described above have impacted civil society’s more public events, they do not appear to have impacted civil society’s ability to use the EITI process to influence public decision-making. For instance, strong civil society advocacy for additional disclosures led to a new iteration of the latest EITI Report (2022) with more information being available to the public.

The Secretariat’s assessment is that Requirement 1.4 is exceeded. The MSG’s ‘Stakeholder engagement’ template considers the objective fully met. Stakeholders from all constituencies were of the view that the objective of an independent MSG that can exercise active and meaningful oversight of all aspects of EITI implementation is fully met. Recognising the difficult environment under which the MSG has been operating for the past years, and the central role it played in maintaining a high level of transparency on the extractive sector, the Secretariat’s view is that the objective is exceeded. Meetings of the MSG are regular and public. Since 2020, and despite the Russian invasion, the three main constituencies of the EITI MSG have been closely cooperating and involved in the decision-making process on the EITI implementation in Ukraine. The established procedures for the constituency groups were followed without exception, with meetings held by the decision of the Chair of the MSG with a minimum frequency of four times a year. The latest MSG Terms of Reference of the MSG is available on the official website of the Ukraine Parliament, alongside the latest composition of the Multi-Stakeholder Group. The TORs were approved by the MSG at the end of 2022, as documented in the minutes of the MSG meeting. MSG meeting minutes are agreed and commented on by all MSG members digitally, and are available on the UA EITI and Ministry of Energy websites. Stakeholders unanimously considered that there was adequate representation for each constituency. Key actors of the sector are included in each constituency, and there is a good gender balance at the MSG level. In terms of concrete results of MSG engagement, a key issue has been the removal of information about the extractive sector by the government following the Russian invasion. The MSG exercised active and meaningful oversight of this aspect of EITI implementation by collegially agreeing on the necessary redactions, but also assessing whether some information could be disclosed by other channels. The MSG also monitored and pushed for a progressive reopening of extractive data. As a result, a second version of the 2022 EITI Report was published shortly after the start of the Validation, with several data points previously redacted available again to the public.

The Secretariat’s assessment is that Requirement 3.1 is fully met. Stakeholders consulted did not express particular views on the availability of information on the extractive industries. The Secretariat’s assessment is that the objective of public access to an overview of the extractive sector has been fulfilled, but not yet exceeded pending improvements in government and company systematic disclosures on activities in the extractive industries. Public access to an overview of the mining, coal and petroleum sectors in the country and its potential, including recent, ongoing and planned significant exploration activities is provided through a limited number of systematic disclosures on government websites and primarily through Ukraine’s EITI reporting, through various dashboards for each commodity. The 2022 EITI Report also provides an overview of significant exploration activities, and notes that due to the Russian invasion, funds dedicated to state exploration were diverted in 2022 and no geological exploration or any update of the current reserves could be made for the year under review. Due to many informal mining activities being undertaken in occupied territories, the 2022 EITI Report was unable to provide information on informal activities in the extractive sector. This is not part of the assessment, given that the occupied territories are outside of the scope of implementation.

The Secretariat's assessment is that Requirement 6.3 is fully met. Stakeholders consulted considered that the objective was fully met. Ukraine’s 2022 EITI Report provides the extractive industries’ contribution, in absolute and relative terms, to GDP, government revenues, exports and employment, as well as investment. Employment figures are disaggregated by gender, but due to martial law, companies were granted the right not to submit statistical reports for the period under review. This made it impossible for the state statistics authorities to compile objective statistical information. Thus, the state statistics authorities suspended the publication of statistical information, including the average number of employees in total and by gender. However, the report does provide alternative figures based on the actual reports submitted by some of the companies, highlighting that the data cannot be compared with previous years. Collating different sources, Ukraine EITI has been able to provide key figures on the contribution of the extractive sector to the national economy on its EITI portal. The Secretariat’s assessment is that Ukraine has fully met the objective of the Requirement 6.3 which is to ensure a public understanding of the extractive industries’ contribution to the national economy. In the information contained in the EITI Report, the data points listed under 6.3 related to exports, employment and reserves are not available to the public, which represents a barrier for the public understanding of the extractive sector contribution. Stakeholders consulted were of the view that the information on the contribution of the extractive sector could be publicly disclosed again in the near future. In its comments to the draft Validation Report, the MSG highlighted that the absolute and relative figures for exports, government revenues, GDP, investment and employment could be found on the updated section of the EITI portal. The Secretariat therefore agrees with the stakeholders’ views and concluded that the objective of Requirement 6.3 is fully met.

The International Secretariat’s assessment is that Requirement 2.1 is fully met as in the previous Validation. Stakeholders consulted did not express any concerns regarding potential gaps in transparency on the legal framework and fiscal regime. The International Secretariat is of the view that the objective of ensuring public understanding of all important aspects of the regulatory framework for the extractive industries is fulfilled. Ukraine’s 2022 EITI Report provides an overview of the legal framework and fiscal regime governing the extractive sector. This includes a summary description of key laws and regulations, fiscal terms and the level of fiscal devolution, the various types of contracts and licenses used in the sector, a description of the roles and responsibilities of relevant institutions and information on government policies, strategies and reforms applicable to the extractive industries. Information on laws and regulations is also systematically disclosed on a government website. The Russian invasion of Ukraine and the introduction of martial law has had some impact on transparency in this area. While information on laws and regulations remains in the public domain, the EITI Report notes that certain documents, including reports on the implementation of energy sector reforms and the 2050 energy security strategy, are not currently publicly available due to the potential security risks associated with disclosure. Stakeholders were of the view that these restrictions were proportionate to the circumstances and did not have a significant negative impact on public understanding of the sector’s legal framework and fiscal regime. Stakeholders noted that they expected these documents to be disclosed to the public after the end of martial law.

The International Secretariat’s assessment is that Requirement 2.4 is partly met. Despite a strong policy commitment from the Ukrainian government to contract transparency, disclosure practices currently do not fully meet the requirements of the EITI Standard. Stakeholders acknowledged the existence of gaps in disclosure practices, which impact the objective of ensuring comprehensive public understanding of the obligations of companies active in the extractive industries. The government’s policy on contract transparency is defined in the Law of Ukraine "On Amendments to Certain Legislative Acts of Ukraine on Ensuring Transparency in Extractive Industries" (referred to in the EITI Report as the EITI Law). The law requires the disclosure of contracts signed from January 2021 onwards, as well as the disclosure of key terms and excerpts for all PSAs. The requirement to disclose the full text of agreements does not apply to contracts signed before the law came into effect or to amendments to older contracts. The list of all licenses, PSAs, joint activity agreements and concessions is available in the EITI Report, the EITI portal and the government’s open data portal. The EITI Report explains the status of disclosure of these agreements. Under normal circumstances, key terms and excerpts have been disclosed for many PSAs, including some of those signed before the EITI’s contract disclosure requirement came into effect. However, those key terms and excerpts are redacted under martial law. Full text disclosures are not available. Stakeholders noted that the disclosure of key terms and excerpts for some PSAs was disrupted by the Russian invasion and the declaration of martial law. Moreover, stakeholders noted that disclosure of the PSA for the Yuzivska shale gas project signed in 2013 was not covered by the EITI Law and therefore not subject to disclosure. For contracts for subsoil use, scanned copies of license documents together with agreements on the conditions of subsoil use (including work programmes) were previously systematically published on the website of the State Service of Geology. However, due to martial law, access is currently restricted. Stakeholders noted that the decision to restrict public access to contracts was proportionate in light of the current security context. Stakeholders said that they expected contract disclosure to resume after the end of martial law, including for PSAs signed from January 2021 onwards for which key terms and excerpts have not yet been disclosed.

The Secretariat's assessment is that Requirement 6.4 remains not assessed, given that encouraged aspects of this requirement remain to be addressed by Ukraine. Stakeholders consulted considered that the EITI’s proactive approach to disclosing environmental information helped to strengthen public understanding of the extractive sector’s environmental impacts and environmental protection measures. Stakeholders noted also that within the context of martial law, the EITI was playing a leadership role in advancing environmental disclosures. Information on laws and regulations related to the management of the extractive sector’s environmental impacts is summarised in EITI reporting and available online. The EITI report provides a high-level overview of the institutions tasked with environmental protection functions. It also describes the process and criteria for environmental impact assessments (EIAs), strategic environmental assessments, environmental audits and environmental inspections and enforcement. Ukrainian legislation guarantees the right of free access to environmental information. The EITI Report notes that environmental information had historically been insufficiently systematised, only partially disclosed to the public and often not updated with the required frequency. In recent years, steps have been taken to strengthen public access to environmental information. Various government websites host relevant data. The environment ministry maintains two online registers of EIAs, one for assessments conducted before 2024 and one for assessments starting from 2024. The ministry’s website has a section called "Environmental monitoring", where reports on the state of the environment, air quality and other environmental information are posted. The national online platform EcoSystema, maintained by the environment ministry, aims to provide centralised access to environmental information published by various government agencies. This web portal contains links to numerous sources of information (including the results of government monitoring, registers of special licences for the use of natural resources, pollutant emissions). The EITI Report notes that work is underway to increase the amount of information published on the platform. In 2022, the ministry created the EcoZagroza portal to collect and record information about environmental threats. The portal has been used to record information related to environmental damage caused by Russia’s invasion. Various cadastres provide data on environmental aspects (e.g., water, forests). The government also maintains a register of facilities that are considered major polluters and have a harmful impact on the environment. The EITI Report includes environmental monitoring data, which the Independent Administrator requested from the State Statistics Service. This includes sector-wide monitoring data on waste and water management, as well as sector-wide and company-level data on greenhouse gas emissions. In addition, the EITI Report includes data on sanctions for violations of environmental rules. Due to the imposition of martial law, access to many registers and open data portals was restricted in 2022. Since 2023, access is gradually being restored. Stakeholders noted that environmental protection was key priority in Ukraine’s extractive industries. Civil society stakeholders were of the view that it was important to maintain public access to environmental information despite the restrictions brought in by martial law. Stakeholders noted that the EITI had played a leadership role in promoting information disclosures and was setting an example for other sectors of the economy. Stakeholders expressed an interest in further leveraging the EITI for environmental disclosures.

The Secretariat’s assessment is that Requirement 2.2 is fully met, as in the previous Validation. Stakeholders consulted did not express any concerns regarding potential gaps in this area. The International Secretariat is of the view that the objective of ensuring public understanding of the processes used to award contracts and licenses is fulfilled. EITI reporting includes a description of the processes for awarding licenses, PSAs and other types of agreements. The EITI Report provides a step-by-step description of different awards processes. The Ukrainian Geological Survey has stated that there were no deviations from statutory procedures in award processes within the reporting period. The MSG has also not detected any deviations. Auctions for licenses are managed through a government portal. The EITI Report includes information on auctions held in 2022, including the winners and applicants. Stakeholders have described the government portal as world-leading from a transparency perspective. The EITI Report notes that decisions on license awards are primarily based on financial factors, i.e., licenses are awarded to the highest bidder. Regulations also stipulate several grounds for refusal to grant a license, including the absence of beneficial ownership information or discrepancies between the information provided and information contained in the government’s beneficial ownership register (see below). Awards of PSAs are also competitive but are not managed electronically. Technical and financial criteria are defined by the cabinet of ministers and disclosed to the public. Stakeholder did not express any concerns related to potential transparency gaps related to PSA awards. For the year under review, 295 licenses were awarded in the extractive sector in total. From the mining sector, 246 licenses were awarded, 158 of them without bidding processes. In the oil and gas sector, there were 49 license awards, of which 48 were awarded without auction. According to the EITI Report, no transfers took place in 2022. A temporary legislation was implemented, prohibiting any license transfers in the extractive sector, oil and gas or mining. It has been confirmed by the response of the Ukrainian Geological Survey that there were no material deviations from the statutory procedure in license awards in 2022.

The Secretariat’s assessment is that Requirement 2.3 is fully met. Stakeholders did not express any concern around potential transparency gaps in this area. The International Secretariat considers that despite the implementation of this requirement being severely impacted by martial law, the objective of ensuring the public accessibility of comprehensive information on property rights related to extractive deposits and projects is fully met, as a result of EITI efforts to maintain key data available to the public. Prior to the imposition of martial law in 2022, public access to information on extractive sector licenses was provided through the Geoinform online register. According to the EITI Report, this register allowed searches of valid, invalid and suspended licenses and covered all information required by the EITI Standard. The portal also included scanned copies of licenses together with agreements on the conditions of subsoil use and work programmes. Some license information was also captured on other government websites, including the Derzhgeonadra website, State Geological Portal, Public Cadastral Map, Unified State Open Data Portal and EITI portal. In 2023, the government introduced plans to develop a Unified Geoinformation System to consolidate various online resources, which was launched in April 2025, although not available to the public. The implementation of this requirement was severely impacted by martial law due to access restrictions on various government portals. As of November 2024, access to most license information and online registers remained limited to government officials involved in the review and approval of license applications. However, in an effort to reopen information on licenses issued during 2022, the full list of licenses and agreement on the conditions of subsoil use is available on the EITI Portal. This resource includes the name of the license holder, the commodity produced, the date of application, expiry and award date, as well as the beneficial owner, but not the coordinates. In its response to the draft Validation Report, the MSG noted that stakeholders may submit a request for accessing the coordinates with the instructions published on the State Service of Geology and Subsoil website. Stakeholders were of the view that the restrictions on license information were proportionate considering the war. Given that the Russian military was targeting industrial facilities and energy infrastructure, stakeholders felt that removing access to license coordinates and maps was critical for national security purposes. However, civil society stakeholders also stressed that it was important to continue to collect data and to ensure disclosure retrospectively once the security situation allows.

The Secretariat’s assessment is that Requirement 2.5 is mostly met. Stakeholders noted that Ukraine had for many years shown significant international leadership in promoting beneficial ownership transparency. However, stakeholders also acknowledged gaps in disclosure practices in 2022, creating an obstacle to the objective of advancing public understanding of who ultimately owns and controls companies in the extractive sector. Since then, efforts were underway to address these gaps and stakeholders seem confident in future resuming of disclosures. The EITI Report provides the government’s definition of beneficial ownership and an overview of laws, regulations and policies for recording and verifying beneficial ownership information. Beneficial ownership information is recorded in a public register known as the “Unified State Register of Legal Entities, Individual Entrepreneurs and Public Organisations” (or EDR) and is also disclosed on the EITI’s open data portal and in an annex of the EITI Report. The EITI Report describes legislative and regulatory changes introduced in 2022 and 2023, as well as planned reforms, which clarify various aspects of the country’s implementation of beneficial ownership requirements. The legal framework creates an obligation to disclose beneficial ownership information as part of the registration of all legal entities. Companies must update this information whenever a change occurs. This information is captured in the EDR. A prerequisite for obtaining an extractive sector licence is the availability of beneficial ownership information in the EDR. The information disclosed in the EDR mostly meets EITI requirements. However, it does not include information to identify politically exposed persons (PEPs). This information was previously available through non-governmental sources, notably the Open Register of National Public Figures of Ukraine. However, access to this register was closed in 2022 due to martial law. More recently, EITI reporting forms have sought to collect information on PEPs and the EITI’s open data portal captures this, though it only relates to reporting companies, and not all companies owning or applying for a license. Beneficial owners of all companies owning or applying for a license are available through the national auction website, but do not include PEPs or non-resident information. A further gap in fully meeting the requirement relates to the disclosure of beneficial ownership information for non-residents, which historically has not been captured in the EDR. In 2022 only one license was issued to a non-resident. As a result, the effect of this gap on public understanding of beneficial ownership in the sector was limited. The government introduced regulatory changes in 2022 and 2023 to address this challenge though these were not yet in effect within the reporting period for this Validation. In more recent reporting periods, the EITI provided this information for reporting companies, which demonstrates disclosure progress. In the 2023 EITI Report published in January 2025, information on beneficial owners was requested from all reporting companies, including non-residents. The EITI Report notes that beneficial ownership disclosures can be incomplete or inaccurate. In some cases, the Independent Administrator identified discrepancies between the information available in the EDR and data disclosed through the EITI. These discrepancies are highlighted in an annex to the EITI Report. The EITI MSG discussed the discrepancies, including the explanations provided by companies, and resolved to evaluate mechanisms to guarantee the reliability of beneficial ownership information. More recently, procedures have been put in place to penalise companies for the submission of inaccurate beneficial ownership data. Stakeholders remarked that Ukraine had previously been a global leader in efforts to ensure public access to beneficial ownership data. Stakeholders also noted that beneficial ownership data had been useful in identifying ownership structures that could compromise national security or violate sanctions. While access restrictions due to martial law represented a setback for beneficial ownership transparency, stakeholders were of the view that the current approach struck an appropriate balance between protecting national security interests and promoting public access to data. There is also evidence the government has used BO data in anti-corruption cases Stakeholders expected a return to strong commitments to beneficial ownership transparency once martial law ends.

The Secretariat's assessment is that Requirement 2.6 is mostly met with improvements compared to the previous Validation, where this requirement was mostly met (‘meaningful progress’). The MSG’s self-assessment on this requirement is ‘fully met’. The Secretariat’s view is that the objective of ensuring an effective mechanism for transparency and accountability for well-governed SOEs and state participation is almost fulfilled. While most of the technical aspects of Requirement 2.6 are publicly addressed in the oil and gas sector and the mining sector, the Secretariat’s view is that the objective is only mostly fulfilled. Many information has been redacted due to martial law, such as rules and practices related to SOEs’ operating and capital expenditures and corporate governance, or state ownership in extractive operations. The 2022 EITI Report addresses several aspects of state participation, which has improved since the last Validation of Ukraine. At the end of 2021, amendments were adopted to the Law "On Ensuring Transparency in Extractive Industries" introducing a requirement for state owned companies to disclose information on financial relations with the state in their report on payments to the state, including information on the full list of subsidiaries and minority shareholdings, dividends paid to the state, loans and other financial resources raised under state guarantees and retained earnings. In oil and gas, the 2022 EITI Report clearly lists the SOEs engaged in the sector, and the level of ownership in companies operating within the country’s oil and gas sector, including those held by SOE subsidiaries and joint ventures. The report describes changes in the level of ownership during the reporting period in accordance with provision 2.6.a.ii. State participation in the oil and gas sector gave rise to revenues under the form of dividends from two SOEs, Naftogaz and Ukrnafta. An explanation of the role of SOEs and prevailing rules governing transfers of funds between the SOE(s) and the state, retained earnings, reinvestment and third-party financing are included. The practice of these rules is largely described in public documents . In mining, government stakes in material state-owned enterprises (SOEs) and private companies are mostly available, including for most majority-owned subsidiaries and joint ventures. Subsidiaries and associate extractive companies for which SOEs’ precise equity stakes, and the terms associated with the equity interests, are publicly disclosed. State participation gave rise to revenues under the form of dividends from four SOEs, Lvivvuhillia SE, Myrnohradvuhillia SE, Pervomaiskvuhillia SE and United Mining and Chemical Company JSC. The statutory rules governing SOEs’ retained earnings, reinvestments, third-party investments and dividend payments are summarised through EITI reporting. Financial practices are largely described in public documents . Dividend incomes exist for some SOEs, towards their parent company, and data on dividend income of all material SOEs seems comprehensive. Third-party financing of SOEs is disclosed in the EITI Report and other publicly available documentation. The latest IMF Article IV report notes for instance that Naftogas has secured funding from the EBRD. Several loans and loan guarantees exist between SOEs and extractive companies, and between the government and SOEs. These are documented through publicly accessible documents and EITI reporting, though neither stipulate the precise terms and repayment schedules, but they indicate that loans are guaranteed by the state. The International Secretariat could not locate any detailed public disclosures of SOEs’ loans and guarantees issued to extractive companies or SOEs specifically. In its comments to the draft Validation Report, the MSG highlighted that all state guarantees are publicly available online. It also noted that the 2023 EITI Report contained the terms and schedules of repayment of state-guaranteed loans to Ukrgasvydobuvannya and Naftogaz. In addition, the State Treasury Service of Ukraine confirmed that there was no overdue debt on loans with state guarantees as of 31 December 2023, and indicated the amount currently under state guarantee (UAH 13.29 million from Naftogaz of Ukraine NJSC). The 2022 EITI Report lists a state-owned company, SE "Eastern Mining and Processing Plant" (EastMPP), which extracts uranium ores in Ukraine. While the report acknowledges the existence of the company in the overview of the extractives sector, it is not considered in the overview of SOEs. In its response to the draft Validation Report, the MSG notes that this SOE is considered not material, and therefore did not report on its financial relationship with the State. SOEs publicly disclose their audited financial statements, but the martial law introduced the possibility to delay the publication, which was done in practice for 13 SOEs. However, the main financial items are available online from third-party sources.

The Secretariat's assessment is that Requirement 4.2 is not applicable for the year under review, as in the previous Validation, but will be in the future. Stakeholders consulted and the Transparency Template noted that this requirement remains not applicable for the year under review. The State Service of Geology disclosed information on the state share of profit natural gas under one production sharing agreement transferred by the operator (Uhnivska PSA) to the state in its EITI payment report, the operator reported the same amount of state share of profit petroleum as an accrued but unpaid in-kind payment to the government. In February 2024, the Cabinet of Ministers of Ukraine passed a regulation to make the State Geology Service and SC "Gas of Ukraine" the entity responsible to collect and sell the government share of output produced prior to the Resolution, which also confirms that in 2022 the government share of gas was not physically collected by the government.

The Secretariat's assessment is that Requirement 4.5 is mostly met with improvements. Most stakeholders consulted considered that the objective of transparency in SOE transactions had been fulfilled with the 2022 EITI Report, which was broadly considered as providing the most comprehensive disclosures of SOE transactions in the public domain to date. The Secretariat agrees with stakeholder’s views but notes that some of the information related to these transactions are not publicly accessible in the EITI Report, and SOEs have been allowed to delay the publication of their audited financial statements, which further constrains the amount of information available to stakeholders. This hinders the objective of transparency of Requirement 4.5. This situation leads the Secretariat to conclude that the objective of this requirement has been mostly met with improvements from the last Validation. On company payments to SOEs, the 2022 EITI Report lists dividends paid by material companies to SOEs, but it is unclear if SOEs have been collecting other payments. In the absence of public financial statements, the main items of the financial statements do not allow to confirm or affirm if payments have been collected by other SOEs. In its comments to the draft Validation Report, the MSG notes that outside of dividends, payments made to SOEs are not material for the year under review. Based on the 2022 EITI Report, the Secretariat understands that SOEs did not make significant payments to the state in 2022 outside of the regular payments they are subject to, including dividends. On State transfers to the SOEs, the EITI national website describes an aggregate figure of UAH 111.1 billion which was allocated to SOEs for compensation for expenses related to the performance of special duties (see Requirement 6.2). The breakdown per company does not seem to be provided. Three other transfers are identified in the 2022 EITI Report and the Transparency template and consists of: UAH thousand 3 941 390 390 for the implementation of budget programmes to support the coal industry. UAH thousand 12 700 000 for the implementation of budget programmes to support the oil and natural gas industry. UAH billion 14 as an overall subvention budget. This information is also available on the open data portal of Ukraine EITI. The nature and the amount of the transfers are included, as well as the beneficiary and the type of aid received, up to 2024. These online disclosures represent some of the best practice of transparency on state transfers to SOEs. Regarding the data reliability of the disclosures, the MSG agreed on the procedure to address data quality and assurance of financial information in the MSG meeting minutes dated 27.10.2023. Dividends from SOEs to government are reconciled in the same manner as other material payments to government. In its comments to the draft Validation Report, the MSG highlighted that a new law passed in 2025 reinstituted the publication of audited financial statement, coming into force at the end of August 2025.

The Secretariat's assessment is that Requirement 6.2 is mostly met. Stakeholders consulted and the Transparency template considered the objective of transparency around extractive-funded expenditures on behalf of the government undertaken by SOEs to be mostly met. Typical quasi-fiscal operations in the Ukrainian extractive industries include the supply of natural gas at preferential prices to heat and power enterprises, accumulation of receivables from SOEs involved in the gas sector in Ukraine for the sale of natural gas to the population and heat and power enterprises, and special liabilities under loan agreements. In addition, and due to introduction of martial law in 2022, certain companies of the state-owned Naftogaz Group were imposed special obligations to supply gas to ensure the public interest. The 2022 EITI Report identifies four forms of potential quasi-fiscal expenditures in Ukraine, all in the gas sector. Only one was relevant in the period under review, the accumulation of receivables from SOEs and subsidiaries in the gas sector for the sale of natural gas at preferential prices. The report provides some methodology for calculating these quasi-fiscal expenditures, and indicates which SOEs are involved in these expenditures. However, it remains unclear if quasi-fiscal expenditures could apply in other sectors of the industry, and a specific recommendation from the 2022 EITI Report is aimed at renewing the scope for such expenditures in the coming years. In addition, the breakdown of each expenditure is not available, and only an aggregate figure for the total of the relevant quasi-fiscal expenditure. The nature of each of these quasi-fiscal operations is clearly described on the national EITI website. The 2022 EITI Report describes the expenditures undertaken, and provides an aggregated figure for the accumulation of receivables from NJSC "Naftogaz Ukraine", LLC "Gas Supply Company "Naftogaz of Ukraine", LLC "Gas Supply Company "Naftogaz Trading" for the sale of natural gas, which seems to be the only relevant flow for the year under review, however not disaggregated by transaction.

The Secretariat’s assessment is that Requirement 3.2 is mostly met. Stakeholders consulted did not express any particular views on whether the objective of ensuring public understanding of extractive commodities production levels and their valuation had been fulfilled. The Secretariat’s view is that the objective remains mostly fulfilled, given the lack of public access to comprehensive production volumes and values for the commodities coal and uranium. Despite most of the production volumes and values being not available in Ukraine 2022 public report, the International Secretariate recognises that key stakeholders may have other means to access some of this information. Given Russia’s military aggression against Ukraine and the Law of Ukraine “On Protection of Interests of Reporting Entities and other Documents in the Period of Martial Law or State of War”, the information of the volume of hard coal production in Ukraine from the Ministry of Energy and the State Statistics Service is confidential and was not communicated to the Independent Administrator. Nevertheless, the 2022 EITI Report drew from the SRPE Geoinform of Ukraine data and presented partial data in Ukraine’s 2022 report. There is no publicly available information on the value of products from the hard coal mining industry. The total revenue from the sale of commercial products in Ukraine in 2022 and the revenue from exports is included in the unredacted version of the 2022 EITI Report, drawing from 8 out of 11 reporting hard coal mining companies. There is no publicly available disaggregated information on the value of the production of natural gas, oil and gas condensate. However, EITI Ukraine made calculations based on the average prices for natural gas, oil and gas condensate in 2022. No production figures for uranium have been disclosed, similar to the previous Validation. However, third-party sources such as the 2022 report on uranium from the International Energy Agency and the Nuclear Energy Agency contains figures for the Ukraine production of uranium. The unredacted 2022 EITI Report also includes sources of the production data and information on how the production volumes and values disclosed in the EITI have been calculated in different sections for each mineral, oil, and gas.

The Secretariat’s assessment is that Requirement 3.3 is fully met. Stakeholders consulted considered the objective of ensuring public understanding of extractive commodities export levels and the valuation of extractive commodity exports to be fully met. Export data is available both as volumes and values for all sectors. Volumes are available as both aggregate figures per commodity and some disaggregated by subtypes such as hard coal versus brown coal, as well as destination countries.

The Secretariat's assessment is that Requirement 4.1 is fully met. Stakeholders consulted were of the view that the objective of public understanding of the contribution of the extractive industries to government revenues was fulfilled. The Secretariat agrees with this assessment. While the list of material companies has been redacted in the 2022 EITI Report due to martial law, the International Secretariate recognises that key stakeholders have access to revenue data disaggregated at a company level in the unredacted report. The IA assessment of materiality is included, noting that the revenue data is comprehensive for the year under review. The materiality threshold is presented and there is a description of each material revenue stream, related materiality definitions and thresholds in Section 9 of the 2022 EITI Report. The report notes that payments not directly related to extractive activities were excluded, such as the excise tax on imported goods. In the unredacted report, material companies are clearly identified, and the IA received information from 59 out of 65 reporting companies, making the actual reconciliation 94.55% complete in terms of government revenues. The list of material companies is redacted in the 2022 EITI Report, and as a consequence the company-level disaggregation of revenues. Revenues are still disclosed at a sector and sub-sector level. Discrepancies revealed by the reconciliation and the most common reasons for their occurrence are well documented and explained. Since the Russian invasion, a military levy has been created, but was deemed non-material. The royalty calculation rate for gas extractive companies has been temporarily modified to apply only to the volumes sold on the international market. Following-up on the corrective action from the previous Validation, Ukraine included revenue figures from the uranium and thorium in the total of government revenues (contextual information such as production and exploration are still considered a state secret, see 3.2). Revenues generated represented only 0.16% of the total government revenues. Non-material revenue streams are covered by the unilateral disclosure of revenues from government agencies.

The Secretariat's assessment is that Requirement 4.3 remains not applicable in Ukraine. In the Transparency template, the MSG noted that such agreements were not in place in Ukraine for the time being. In addition to MSG discussions, reporting templates directed to extracting companies included questions regarding any infrastructure agreements between extracting companies and the state.

The Secretariat's assessment is that Requirement 4.4 is mostly met, as in the previous Validation. Stakeholders consulted considered that the objective of ensuring transparency in SOE revenues from the transit of gas was fully met. Given the lack of disclosures from the operators collecting the transportation fees, the Secretariat’s view is that the reliability of information disclosed could be improved, and considers the objective of Requirement 4.4 mostly met. Transportation revenues exist and are material in Ukraine, for oil and for gas. Several SOEs are responsible for the collection of revenues of the fees paid by private companies to transport the commodities across the countries through pipelines: LLC "Gas Transmission System Operator of Ukraine (GTSO) and Ukrtransgaz. Transportation volumes and associated revenue values are available to the public, disaggregated by revenue streams, and by companies. The open data portal of Ukraine EITI discloses transportation payments made to the GTSO up to 2024, disaggregated by company, including volume and value. It also includes a detailed description of the agreement behind each transaction and which SOE collected the fee. The 2022 EITI Report also presents extractive transport revenue data disaggregated by individual company/customer, but notes that the payment could not be reconciled due to legal barriers blocking the operator of the gas transport infrastructure to publicly disclose the revenues received. There is insufficient information in the public domain about how specific alleged legal barriers hinder actual disclosures of disaggregated transport revenues from the operator. In 2022, 24 material companies disclosed payments linked to the transportation of gas. However, it remains unclear if all payments stemming from the transportation of gas, for instance from Gazprom, were included in the figures disclosed in the EITI Report.

The Secretariat's assessment is that Requirement 4.7 is mostly met. Most stakeholders consulted considered that the objective of ensuring disaggregation in public disclosures of company payments and government extractive revenues and to enable the public to assess the extent to which the government can monitor its revenue receipts as defined by its legal and fiscal framework was mostly met. The Secretariat’s view is that the objective is mostly met given the limited project-level disclosures. Reconciled financial data in the 2022 EITI Report is presented disaggregated by revenue stream and company, and recipient government entity, but not by projects. The EITI law in Ukraine allows for more disaggregated disclosure than the payments to government reports of the Tax services, through consolidated reports to the ministry of energy, for all the extractive sectors. On the coal sector for instance, Ukraine discloses through EITI reporting the list of all projects for the 7 material SOEs, and the royalty payment attached to each of them. With regards to project-level reporting, the decision of the MSG clearly describes the concept of project for extractive activities: production-sharing contracts in the oil and gas sector, mining licenses in the mining sector, (which seems to also cover exploration licenses), and transportation license. Ukraine EITI has identified only one revenue flow reported on a project-basis: royalties. However, consultations confirmed that other material revenue streams are levied on a project basis, and highlighted the opportunity for Ukraine to strengthen the granularity of its financial disclosures.

The Secretariat's assessment is that Requirement 4.8 is fully met. The Secretariat’s view is that the objective of ensuring that public disclosures of government revenues from oil, gas and mining are sufficiently timely to be relevant to inform public debate and policy making is fulfilled. The MSG has approved the current accounting period covered by the EITI Report in February 2023. EITI Reports are usually published well ahead of the two-years deadline, and systematic disclosures from government website and companies are sometimes even more timely, which allows the public to have access to almost real-time data. Consulted stakeholders from all constituencies considered the objective achieved.

The Secretariat's assessment is that Requirement 4.9 is mostly met. Stakeholders consulted considered that the objective was fully met. Most of the technical aspects of Requirement 4.9 have been addressed, expect the publication of audit reports by companies. A number of companies have not published their audited financial statement, due to the martial law, which limits the International Secretariat ability to assess reliability of the financial disclosures for the year 2022. Hence, the International Secretariat considers that the broader objective of contributing to strengthening routine government and company audit and assurance systems and practices is not fully fulfilled, and thus that the assessment should be mostly met. Ukraine’s 2022 EITI Report present a robust methodology for quality assurances that link EITI reporting to audited financial data, where it exists, based on a comprehensive overview of statutory audit and assurance procedures and confirmation that material entities’ financial statements for the period under review had been audited. In addition, the comprehensiveness and reliability of the data should be confirmed on the part of extractive companies (private and state-owned) by signatures of senior officials of these companies, and/or by the opinions of an external auditor on the data provided (if such an opinion is available), for each company. For the central and regional government agencies, by signatures of senior officials of the respective agency, as well as the principles of interaction between different government agencies. 31 material companies did not submit the required quality assurances for their EITI disclosures and are listed in Annex 11 of the EITI Report. Together, they represent more than 41 % of the total government revenues. This information is also redacted under martial law. All government entities certified their EITI reporting. The 2022 EITI Report includes the IA’s assessment that the reconciled financial data appears comprehensive but fails to provide a similar statement for the reliability. The 2022 EITI Report presents a set of recommendations, and does explicitly comment on the status of follow-up on recommendations from the 2020 and 2021 EITI Report. While this could be considered ‘fully met’, the lack of adherence to agreed quality assurance procedures by close to half of the reporting companies is a concern, as are the comments of the EITI Report on the difficulties to ensure the reliability due to new provisions implemented during the invasion of Ukraine.

The Secretariat's assessment is that Requirement 5.1 is fully met. Stakeholders consulted were of the view that the objective of ensuring the traceability of extractive revenues to the national budget and ensure the same level of transparency and accountability for extractive revenues that are not recorded in the national budget was met. In January 2018, Ukraine enforced the Law on Amendments to the Budget Code of Ukraine Regarding the Inclusion of Rent Payment for the Use of Subsoil for the Extraction of Oil, Natural Gas and Gas. The law stipulates that 2% of the rent paid by companies be directed to regional budgets, 2% to district budgets and 1% to local government budgets at the place of location (production) of the relevant natural resources. The remaining 95% of rent payments are directed to the general fund of the state budget. Taxes and other payments made by extractive companies to the state or transferred to local budgets are allocated to general funds and can be used to finance any item. The unified social contribution is earmarked to be used for the needs of Pension fund and other social security funds in a proportion determined by regulations, but this is a general rule not specific to extractive industries. Furthermore, this is a contribution made on behalf of the employees, not the companies, and as such should not be counted as a company payment. Similarly, the environmental tax is allocated between different budgets (see requirement 2.1 and 5.1) and is supposed to be spent for environmental protection purposes. This is a general rule not specific to extractive industries. The rules for allocation of the environmental tax between the budgets are clearly described in the 2022 EITI report.

The Secretariat's assessment is that Requirement 5.3 is not assessed, given some encouraged aspects still need to be met. Stakeholders consulted as well as the transparency template considered the objective of the requirement being fully met, but not exceeded, noting that access to some audit reports on budget management could be made unavailable due to martial law. Given the exemplary systematic disclosures available, the International Secretariat considers that the objective of strengthening public oversight of the management of extractive revenues, the use of extractives revenues to fund specific public expenditures and the assumptions underlying the budget process is fully met, but not yet exceeded. Revenues stemming from the extractive sector are not earmarked for specific programs or investments in Ukraine, to the exception of two non-extractive specific payments, social contribution and environmental tax (see requirement 5.1). The 2022 EITI Report comprehensively describes the country’s budget, audit processes and links to publicly available information about budgeting and expenditure. As encouraged by the EITI Standard, Ukraine systematically discloses aggregated information on revenue management and expenditures through its open budget online platform . In addition, the Public Fund Portal contains granular and timely tax and payment data. This information is disaggregated by type of activity, so it is possible to identify the extractive specific contribution, by taxpayer, revenue codes and region or municipalities. Information related to production and commodity price assumptions and revenue sustainability, resource dependence, or revenue forecasting in general do not seem to be available for the different commodities extracted in Ukraine.

The Secretariat's assessment is that Requirement 4.6 remains not applicable. Although some taxes are allocated in full or in part to local budgets, the payment are made to the state treasury accounts of the national tax authority. Local governments do not directly receive or manage payments from extractive companies.

The Secretariat's assessment is that Requirement 5.2 is fully met. Stakeholders broadly considered that the overall objective was achieved. The Secretariat’s view is that the objective of enabling stakeholders at the local level to assess whether the transfer and management of subnational transfers of extractive revenues are in line with statutory entitlements has been fulfilled given the disclosure by government and Ukraine EITI of sufficient data to provide a basis for public debate around subnational transfers. Subnational transfers related to the extractive sector exist and are material in Ukraine. Existing disclosures include the material transfers between the central government and each relevant subnational government entity. The revenue sharing formula for each revenue stream affected is provided. The Budget Code of Ukraine contains the details of percentage of allocation of tax revenues between budgets of different levels. It is also described in EITI Report Section 6.5 pages 205-233. The actual amount transferred is also disclosed. Combined with the total amount paid for each revenue stream, it is possible to calculate the theoretical amount, as well as any discrepancy between the revenue sharing formula and the actual amount transferred, disaggregated by local government unit.

The Secretariat's assessment is that Requirement 6.1 is mostly met. Stakeholders consulted were of the view that the objective of enabling public understanding of extractive companies’ social and environmental contributions and provide a basis for assessing extractive companies’ compliance with their legal and contractual obligations to undertake social and environmental expenditures was fully met. The Secretariat’s view is that the lack of clarity around the existence and materiality of mandatory social expenditures from extractive contracts represents a weakness in the current disclosures, and considers therefore the objective to be only mostly fulfilled. For mandatory social expenditures, contractual obligations to finance social or infrastructure projects may be provided for in PSAs. The essential terms of some PSAs and relevant excerpts from them were published on the official website of the Ministry of Energy in 2022. However, these extracts do not contain a list of recipients of social payments and clear terms of their payment. In most cases, there is also no information on the amounts, which makes it impossible to draw conclusions about their materiality. Information of social expenditures under the PSAs was requested as part of preparation of 2022 EITI Report, but no social payments under the PSAs were reported by the companies. Voluntary social expenditures for 2022 are disclosed on the EITI portal, unilaterally disclosed by extractive companies. The voluntary social expenditures received by government represents a total of UAH 17 851 050. As some expenditures were made to the army and medical institutions they could not be disaggregated by beneficiary. This information is redacted in the 2022 EITI Report. On environmental expenditures, the only mandatory payment is the environmental tax, which is covered as a material payment (see Requirement 4.1) and as such benefits from the same reliability assurances as any other material revenue stream. Voluntary environmental payments could not be separated from voluntary social expenditures, which contains a category called “environmental measures”. In addition to the regular social expenditures, an extraordinary humanitarian contribution from material companies is also disclosed in the Table 7.17 of the 2022 EITI Report.