The retrospective reduction of the “green” tariff, which is being lobbyed by the head of the Verkhovna Rada Energy Committee Andrei Gerus, will destroy the investment climate in Ukraine, and the state will receive billions of dollars in claims from foreign investors. People’s Deputy of Ukraine Aleksey Goncharenko said this on the air of the TV channel.
“Investments will not go into the country, which means that all this talk about 40% growth over 5 years, frankly, is unrealistic. But even though it will be impossible to achieve 25% of the result. Because without investment, there will be no real growth. And this will mean that the state simply did not fulfill its obligations to investors, changing the rules of the game on the march. Such things cannot be done. And this will have much greater consequences, not only in the field of energy, but in general for the country as such. And it will cost Ukraine very much in all other areas, ”Goncharenko said.
The deputy stressed that if the state violates obligations to investors developing alternative energy in our country, they will go to court and Ukraine will have to pay significant compensation.
“We already have such examples in other countries. For example, in Spain it was all over; these lawsuits against the state are still ongoing there. It refers to the extremely huge amounts that Spain will have to pay investors. And Ukraine will be in a very similar position here. Only, unlike Spain, it will be much more difficult to pay these debts, ”said Goncharenko.
In his opinion, Chairman of the Energy Committee of BP Andrei Gerus is lobbying for the idea of reducing the “green” tariff in the interests of the owners of large energy enterprises that need cheap electricity.
“See who is the apologist for all these changes. This is Mr. Gerus, who at first was the initiator of the import of electricity from the Russian Federation for the same purpose, its cheapening for industry, not thinking at all about the consequences for its own energy sector, for the strategic interests of the state. The same Mr. Gerus today promotes the idea of rejection or correction of the “green” tariff, ”Goncharenko said.
He believes that the authorities now need to negotiate with investors and find a compromise regarding the green tariff.
“It should be negotiations. No one-sided decisions to abolish the tariff, they really will not give anything to the population at all conversations, they give individual industries, as we said, ferroalloys — this is Kolomoisky, some others. But this will have a very big negative effect for the image of the state, for further lawsuits, which will most likely be lost, which means that Ukraine will have to pay very large compensations, ”Goncharenko said.
At the end of last year, the Government of Spain approved a plan to provide additional stable remuneration for renewable energy projects in order to obtain the withdrawal of lawsuits from investors after a retrospective reduction in payments. Spain in 2013 conducted a retrospective review of the tariff for green electricity. In 2017, the government lost at the United Nations International Center for Settlement of Investment Disputes (ICSID), a member of the World Bank Group, in a lawsuit filed by investors who suffered from reduced subsidies on renewable energy and were required to pay 128 million euros of principal, as well as interest . According to the court, the Spanish government violated Article 10 of the Energy Charter Treaty, thereby depriving investors of a fair and equitable regime.
Recall, on December 6, 2019, the Verkhovna Rada registered the draft Law “On Amending Certain Laws of Ukraine on Improving the Investment Climate in the Field of Renewable Energy” (No. 2543), which provides for the possibility of voluntary restructuring of the “green” tariff. The project envisaged that the state would comply with obligations to investors and at the same time reduce the burden due to payments under the “green” tariff in the energy market, but on December 13, 2019 at a meeting of the Verkhovna Rada Committee on Energy and Housing and Public Utilities, this bill did not find support from deputies.