Road Map and Action Plan for Ukraine on harmonisation of standards and codes in electricity and gas sectors

Road Map and Action Plan for Ukraine on harmonisation of standards and codes in electricity and gas sectors INOGATE Technical Secretariat and Integrated Programme in Support of the Baku Initiative and the Eastern Partnership Energy Objectives Contract No 2011/278827 A project within the INOGATE Programme Implemented by: Ramboll Denmark A/S (lead partner) EIR Development Partners Ltd. The British Standards Institution LDK Consultants S.A. MVV decon GmbH ICF International Statistics Denmark Energy Institute Hrvoje Požar

Document title Document status Road Map and Action Plan for Ukraine on harmonisation of standards and codes in electricity and gas sectors Final draft Name Date Prepared by Updated by Checked by Approved by Dr Viktor Petrenko, Mr Robert Jeanjean, Mr Leonid Malov Dr Viktor Petrenko Ana Nuñez Lopez Dr Viktor Petrenko Mr Nikos Tsakalidis Adrian Twomey Mr Peter Larsen, Project Director 26.08.2014 05.03.2015 06.10.2015 16.03.2015 18.03.2015 18.03.2015 28.10.2015 2

This publication has been produced with the assistance of the European Union. The contents of this publication are the sole responsibility of the authors and can in no way be taken to reflect the views of the European Union. Abbreviations AP CEN СЕNЕLEC CIS DCFTA DVGW EASC ECT EU IDT IEC ITS ISO ITC MARCOGAZ MOD NEQ NS NSB OEVGW PC RM ТC SE Ukrmetrteststandard SE UKRNDNC TEG UA UkrSEPRO Action Plan European Committee for Standardisation European Committee for Electrotechnical Standardisation Commonwealth of Independent States Deep and Comprehensive Free Trade Agreement German Gas and Water Association Eurasian Interstate Council for standardisation, metrology and certification Energy Community Secretariat European Union Identical International Electrotechnical Commission INOGATE Technical Secretariat International Organisation for Standardisation Interstate Technical Committee for Standardisation Technical Association of the European Natural Gas Industry Modified Not equivalent National Standard National Standardisation Body Austrian Association for Gas and Water Partner Country Road Map Technical Committee (standardisation unit) State Enterprise All-Ukrainian State Scientific and Research Centre of Standardization, Metrology, Certification and Consumer Protection State Enterprise Ukrainian Scientific Research and Training Centre for Standardisation, Certification and Quality Problems Technical Expert Group Ukraine Ukrainian State Certification System 3

Table of Contents Abbreviations... 3 1. Introduction... 8 2. Current standardisation situation, expected achievements by 2018 and recommendations... 9 2.1. Development of political, trade and economic cooperation... 9 2.2. Division of technical regulation into mandatory and voluntary parts... 10 2.3. Compliance of the national technical regulation system with the principles of the European New Approach... 11 2.4. Compliance of the national technical regulation system with the principles of European New Approach... 12 2.4.1. Independence of standardisation bodies... 12 2.4.2. Procedure for the adoption of international and regional standards... 13 2.4.3. Technical Committees for standardisation... 13 2.5. Participation in international and regional standardisation... 14 2.5.1. Participation in international standardisation... 14 2.5.2. Participation in European standardisation... 15 2.5.3. Participation in EASC standardisation.... 16 3. Priority standards identified by the ITS Experts for Ukraine... 18 3.1. Ukraine s National Programme for adoption of priority electricity standards... 18 3.2. Ukraine s National Programme for adoption of priority gas standards... 19 3.3. Procedure for the adoption of Codes of Practice... 20 4. Action Plan... 21 4.1. Key areas and stages of activities to ensure effective adoption of international and European electricity and gas standards by Ukraine... 21 4.1.1. Compliance of the national system of technical regulations with the principles of the EU New Approach... 21 4.1.2. Compliance of the national standardisation system with the generally accepted international and European principles... 22 4.1.3. Country's participation in international, European and interstate standardisation... 23 4.2. Adoption and introduction of gas and electricity standards... 23 4.2.1. Adoption of priority electricity standards in Ukraine... 23 4.2.2. Adoption of priority gas standards in Ukraine... 24 5. Conclusion... 27 Annex I List of generally applicable electricity standards recommended for adoption by Ukraine in the framework of regional and national programmes... 30 Annex II List of priority gas standards recommended for adoption by Ukraine as national standards 40 Annex III DVGW Technical Rules recommended for introduction in Ukraine... 46

Executive Summary The present Road Map has been developed for Ukraine with support from the EU-funded project INOGATE Technical Secretariat and Integrated Programme in Support of the Baku Initiative and the Eastern Partnership Energy Objectives, under Activity B-2 on the harmonisation of standards and codes in the Partner Countries (PCs). In line with the ToR, the ITS has used the list of standards and codes included in the Energy Community Secretariat and specifically the gas standards recommended by MARCOGAZ and DVGW. The knowledge and experience of harmonising standards has been discussed with the representatives of the PCs through regular regional seminars. For the development of the Road Map, the adopted approach was to involve authorised and competent representatives of Ukraine as members of a dedicated Technical Experts Group (TEG) on Standardisation. Regional seminars conducted once every six months aimed at not only increasing their knowledge on pressing standardisation issues, but also served as a forum for the exchange of experience on Road Map development in the INOGATE Programme Partner Countries. The Road Map and Action plan establishes: regional and national priorities for the adoption of international and European gas and electricity standards by Ukraine. These priorities are taken from the relevant lists of the Energy Community Secretariat the main factors hindering effective adoption and implementation by Ukraine of these international and European standards; the recommended steps to take in order to approach further harmonisation. Based on identified priorities, the Road Map and Action Plan for 2014 2016 was drafted to support the country s adoption of international and European gas and electricity standards. In the implementation of this Road Map, Ukraine should adopt the majority of the electricity and gas standards from the updated list of standards of the Energy Community Secretariat. Adoption of priority electricity standards will allow users to: connect energy sites to international electricity networks which is possible only if key requirements for energy sites using electrical products and equipment comply with international safety rules; purchase electrical products and equipment meeting up-to-date electricity standards; ensure maintenance of electrical products and equipment according to European (international) safety rules; bring the electricity regulatory framework of Ukraine in line with the requirements of European codes and standards; adopt common terminology and approach in the matter of operation, modernization, reconstruction and maintenance of energy sites and electricity networks; improve the professional skills of specialists of electricity companies, raising the reliability and operational efficiency of the system; increase the safety of electrical installations; enhance the quality of electrical installations in terms of energy saving and increased use of renewable energy sources; fulfill the obligations foreseen by the Association Agreement signed by Ukraine, the European Union and the European Atomic Energy Community and their member states. Adoption of priority gas standards, which are the basic standards used by the European gas industry, will enable PCs to solve a number of common problems. These include: 5

CEN/TC 234 functional standards and DVGW Technical rules will help the PCs to modernize, where appropriate, the gas transmission infrastructure; reducing measurement errors (or uncertainty) relating to gas supply quantities. For fiscal measurements, PCs use a method based on a measuring diagram. It is not a very precise method, which may lead to losses for customers. Reducing the uncertainty (error) is possible, but it will require substantial capital expenditure. An alternative is to use gas flow detectors. There has already been a translation of European standards from CEN/ТС 237 "Gas meters", and also all standards necessary for their implementation and a basic international standard ISO 17089-1 Measurement of fluid flow in closed conduits Ultrasonic meters for gas Part 1: Meters for custody transfer and allocation measurement. This will allow Ukraine to transfer the method to revenue metering state-of-the-art within a short time; introducing the determination of calorific value and other gas qualitative characteristics, which involves switching from gas trade on the basis of volume to trade based on net energy - which is consistent with the EU gas market approach; ensuring coordination of gas transportation systems during direct and reverse-flow deliveries of gas, and the creation of a European gas hub; buying tubular goods and modern equipment for the facilities of main gas pipelines which meet European standards; maintaining the facilities of main pipelines according to international and European standards of occupational and industrial safety; improving the efficiency and energy saving level of operational equipment used in the facilities of main gas pipelines; ensuring the application of innovative technology of natural gas production and facilitating the supply of equipment; bringing the legal framework of Ukraine s gas transmission sector in line with the requirements of European regulations and standards, ensuring the use of common terminology and approaches in the modernization and reconstruction of the gas transportation system; improving the professional skills of gas transportation company specialists to increase the reliability and operational efficiency of the gas transportation system of Ukraine. In order to achieve the successful implementation of this programme most of the required prerequisites are in place, specifically: the political will of the Government to support the adoption of EU-compliant or aligned standards; membership to ECT; signature of the Association Agreement with the European Union; compliance of the technical regulation system with generally accepted international and European practice; legislative capability for direct adoption of international and European standards in the original language; existence of a considerable number of Technical Committees (TC), including committees in gas and electricity sectors; full membership of ISO and IEC, and affiliate membership of CEN and CENELEC, which makes it legally possible to directly adopt all international and European standards. For the successful implementation of this programme on the adoption of international and European standards, Ukraine should: establish a fully functional independent National Standardisation Body (NSB). According to the Order of the Cabinet of Ministers of Urkaine dated 26 th of November 2014 No. 1163-p, the State Enterprise Ukranian Research and Training Centre of the problems standaridsation, certification and quality (UkrNDNZ) fulfils the funcitons of the NSB; ensure Ukraine s participation in work undertaken in CEN and CENELEC TCs for standardisation; 6

implement the phased plan of bringing the structure of Ukrainian TCs in line with the structure required by ISO, IEC, CEN and CENELEC. 7

1. Introduction The current gap in standardisation systems in INOGATE Partner Countries (PCs) and the European Union (EU) has resulted in a significant barrier to trade in energy, energy products and infrastructure between these countries. The INOGATE programme has been aware of this significant barrier and has had a number of specific projects dedicated to improving the capacity of the Partner Countries to gradually harmonise their standardisation system with European best practice. The current INOGATE Technical Secretariat project (ITS) has a specific sub-component dedicated to support the countries in this harmonisation process. As a result of these activities, a Road Map and Action Plan have been drafted for each of the Partner Countries. These documents contain a tailored review of the standardisation system for each country and how they compare with European best practice. The Action Plan details the steps each country should take in order to close this gap and ensure they are fully harmonised with European standardisation practices. In order to understand the standardisation context in the region, the document Regional Background to the Road Maps and Action Plans for the harmonisation of standards and codes in electricity and gas sectors for the INOGATE Partner Countries provides a general overview of all INOGATE Partner Countries. The Road Map and Action Plan for Ukraine on harmonisation of standards and codes in the electricity and gas sectors provides an in-depth view of the current state of the standardisation system as well as the steps the country has to take to harmonise its system in line with EU practice. 8

2. Current standardisation situation, expected achievements by 2018 and recommendations There are a number of criteria that will determine the effectiveness of the harmonisation and adoption process of international and European standards. These criteria involve the following: 1. The degree of development of political, trade and economic cooperation with the EU in the gas and electricity sectors; 2. The existing division of technical regulation into mandatory and voluntary parts (technical regulations and voluntary standards); 3. Conformity of the national system of standardisation with the principles of the European New Approach; 4. Conformity of the national standardisation system with the common international and European principles, including: o independence of standardisation bodies; o planning and implementation of procedures for adoption of national standards; 5. The degree of the country s involvement in international and regional standardisation, namely: o the degree of the country s involvement in international standardisation; o the degree of the country s involvement in European standardisation; o promoting regional cooperation between countries within the Interstate Council for standardisation, metrology and certification (EASC). This chapter will describe the current state of affairs in Ukraine for each of these criteria and also the steps the country is recommended to take to ensure harmonisation of systems. 2.1. Development of political, trade and economic cooperation The existence of political, trade and economic agreements between the INOGATE Partner Countries and the EU plays an important role in the process of adopting international and European standards as national standards. In particular, the following agreements and partnerships have the greatest impact on the effectiveness of standards harmonisation process: Partnership and Cooperation Agreement; Agreements on action plans under the European Neighbourhood Policy (Eastern Partnership); Participation in the Energy Community Treaty; Association Agreement with the European Union which stipulates gradual alignment of national laws and regulation in accordance with European ones and establishment of a free trade zone. On the 16 th of September 2014 the Ukraine ratified the Association Agreement with the European Union (Act No. 1678-VII). This agreement is a framework for collaboration between the two parties, and introduces the Deep and Comprehensive Free Trade Area (DCFTA), a preferencial trade regime which establishes a free-trade area between the EU and Ukraine. The DCFTA also identifies the main EU legislative acts which will need to be adopted by Ukraine to ensure the alignment of both markets and to facilitate trade between them. The Association Agreement contains a number of references to standards and harmonisation under Chapter 3 Technical barriers to trade, standardisation, metrology, accreditation and conformity assessment and Chapter 14 Energy, which specifically mentions the need to ensure that developments in the country 9

are in line with the obligations under the Energy Community Treaty, of which Ukraine is a signatory since 2010. It is currently attempting to comply wth the 3 rd energy package which has proved challenging so far 1. 2.2. Division of technical regulation into mandatory and voluntary parts The main principle of technical regulation is to separate the regulatory process into mandatory and voluntary parts. This applies to regulatory documents and the structures that carry out the development and adoption of these documents. With this approach, mandatory requirements for products and production processes are formulated only in legislative documents (acts and mandatory technical regulations). Requirements provided in all other technical documents, including standards, are voluntary. In the particular case of Ukraine the NSB adopts national standards, while the Cabinet of Ministers or central executive bodies adopt technical regulations as per the Technical Regulations and Conformity Assessment Act of Ukraine No. 124-VIII from the 15 th of January 2015. Currently, Ukraine has adopted the following legislative acts: Standards, technical regulations and conformity assessment procedures 2 ; Technical regulations and conformity assessment 3, which will come into effect a year after its publication; and Standardisation Act 4, which came into effect on the 3 rd of January 2015. These laws set out the following key principles of technical regulations: two different types of regulatory instruments: mandatory technical regulations and voluntary standards; two different procedures for the development and adoption of mandatory technical regulations and voluntary standards; different authorised bodies dealing with the development and adoption of technical regulations and standards. In line with the above, Ukraine will reform other secondary legislation and relevant institutions, as well as develop and implement technical regulations. At present, Ukraine has adopted and implemented 45 EU technical regulations, including eight regulations related to the electricity sector and five related to the gas sector. However, this quantity of technical regulations is not enough for Ukraine to switch completely from a system of mandatory certification of products to a system of conformity assessment of products in the UkrSEPRO 5 system. Ukraine is planning to adopt the set of technical regulations that are necessary to move to a system with voluntary standards in line with the requirements of the Association Agreement signed with the EU. 1 Based on results published on the Energy Community Monitoring Report (2014). 2 No. 3164-IV dated 1 st December 2005 3 No. 124-VIII dated 15 th January 2015 4 No. 1315-VII dated 5 th of June 2014 5 Ukrainian certificate of conformity system 10

2.3. Compliance of the national technical regulation system with the principles of the European New Approach The European Union s New Approach Directives are a set of harmonisation legislation on product safety which contain so-called essential requirements. A fundamental feature of a large part of the EU s harmonisation legislation is to limit legislative harmonisation to the essential requirements that are of public interest or considered as responsibility of the Government 6. These requirements deal with the protection of health and safety of users (usually consumers and workers) but may also cover other fundamental requirements (for example the protection of property, animals or the environment). Essential requirements are designed to provide and ensure a high level of protection and either arise from certain hazards associated with the product, refer to the product or its performance, or lay down the principal protection objective. Manufacturers are allowed to choose the way to meet the requirements, either through the use of relevant harmonised supporting standards, if these contain the measures and methods for the hazards to be dealt with, or through alternative methods, provided they can demonstrate the requirements are being met. The implementation of harmonised European standards may lead to so-called presumption of conformity (with the relevant essential requirements) depending on whether the product is suitably covered by the supporting standard or set of supporting standards. As an Energy Community Treaty member, Ukraine should adopt all gas and electricity standards as national standards from the respective list of the Energy Community Secretariat s standards, which are in line with the following EU Directives and Regulations: 1. Directive 2004/17/EC Utilities 2. Directive 2014/34/EU - ATEX - Equipment and protective systems intended for use in potentially explosive atmospheres 3. Directive 2014/68/EU - PED - Pressure Equipment 4. Directive 2014/32/ЕU - MID - Measuring Instruments 5. Directive 2014/30/EU - EMC - Electromagnetic Compatibility. 6. Directive 2006/42/EC - MD - Machines 7. Directive 2014/35/EU - LVD - Low Voltage 8. Directive 2008/68/EC - TDG Inland Transport of Dangerous Goods 9. Directive 2014/29/EU - SPVD - Simple Pressure Vessels 10. Directive 2009/125/EC Ecodesign requirements for energy-related products 11. Directive 2009/142/EC - GAD - Gas Appliances 12. Regulation 640/2009 - Ecodesign requirements for electric motors 13. Directive 2010/30/EU - Energy labelling Currently, Ukrainian legislation allows the application of all of the above-mentioned principles and mechanisms of the European New Approach. At the time of writing, Ukraine has implemented the following directives into its national technical legislative system: Equivalent: 5. Directive 2014/30/EU - EMC - Electromagnetic compatibility. 6. Directive 2006/42/EC - MD - Machines 7. Directive 2014/35/EU - LVD - Low Voltage 6 This refers in particular to health and safety risks or protection for vulnerable groups (children or elderly people) which is considered as responsibility of the Government. 11

13. Directive 2010/30/EU - Energy labelling Modified: 2. Directive 2014/34/EU - ATEX - Equipment and protective systems intended for use in potentially explosive atmospheres 3. Directive 2014/68/EU - PED - Pressure Equipment 4. Directive 2014/32/ЕU - MID - Measuring Instruments 9. Directive 2014/29/EU - SPVD - Simple Pressure Vessels 11. Directive 2009/142/EC - GAD - Gas Appliances Several harmonized European standards from the relevant lists of the official journal of the European Union were adopted for every Directive implemented. In accordance with the Association Agreement and the Deep and Comprehensive Free Trade Area (DCFTA), Ukraine plans to implement all European Directives and Regulations over the next 10 years from 2016. At the moment of publishing Ukraine has already adopted four technical regulations equivalent to the relevant above-mentioned Directives. However, this is not a complete implementation as they relate to New Approach Directives which require the adoption of harmonised standards from the relevant lists published in the Official Journal of the Euopean Union. 2.4. Compliance of the national technical regulation system with the principles of European New Approach EU standards, which are applied voluntarily, are generally requested by manufacturers to make products safer and production more efficient. Full implementation of the above mentioned principles is only possible under the following conditions: fulfilment of the key principle of European standardisation - namely, independence of national standardisation bodies both from Government intervention bodies and from certain industrial or non-government organisations; conformity of the procedure of adoption of international and regional standards as national standards to the ISO/IEC 21-1:2005 and ISO/IEC 21-2:2005 Guides, and the existence of a compact procedure of adoption of international and regional standards in the original language (without the translation into Russian or national language); existence, within the national standardisation bodies, of such a specific structure as Technical Standardisation Committees, which are assigned almost all technical functions to ensure the standards development process (including the mandate to adopt draft standards). The area of responsibility of standardisation bodies is limited to setting the rules and procedures for the work of technical committees as well as coordination and monitoring of their daily practice. 2.4.1. Independence of standardisation bodies According to the Standardisation Act of Ukraine, which came into effect on the 3 rd of January 2015, and the Order of the Cabinet of Ministers of Ukraine, dated the 26 th of November 2014 On determining a state enterprise fulfilling functions of the National Standardisation Body, the functions of the NSB of Ukraine are fulfilled by the state enterprise Ukrainian Research and Training Center of the Problems of Standardisation, Certification and Quality SE UkrNDNZ (No. 1163-p). However, functions of the national secretariats for cooperation are undertaken by the following institutions: For ISO, CEN and CENELEC: the state enterprise Ukrainian Research and Training Center of the Problems of Standardisation, Certification and Quality (SE UkrNDNC); 12

For IEC: the All-Ukrainian State Scientific Production Center of Standardisation, Metrology, Certification and Protection of Consumers (SE Ukrmetrteststandart). Between 2015-2018 Ukraine expects to reform the standardisation system to bring it in line with international and European best practice. The NSB should have following functions: organise and coordinate standardisation activities; approve the standardisation work programme; adopt and cancel national standards, including construction-related standards; create and terminate TC on standardisation, act in the name and on behalf of Ukraine in international and regional organisations for standardisation and cooperate with national standardisation bodies of other countries. 2.4.2. Procedure for the adoption of international and regional standards At present, the adoption of international and regional standards is regulated by the national standard DSTU 1.7:2001 National standardisation. Rules and methods for adoption and implementation of international and regional standards, which corresponds to the ISO/IEC 21:1999 Guidelines, as well as to the Order of the Ministry of Economic Development and Trade of Ukraine 224 of 16.11.2011 Concerning the concept of implementation of the EU standards by the cover page method. These documents describe how international and European standards can be adopted without their translation into Ukranian or Russian language, while the adoption of interstate GOST 7 standards as national standards is currently performed by converting them into national DSTU GOST standards by the cover page method 8. Although the national standardisation system does not allow for the existence of conflicting standards, the mechanism for their withdrawal is not applied as efficiently as it can be possible. Over the 2015 to 2018 period, Ukraine plans to revise DSTU 1.7:2001 National standardisation. Rules and methods for adoption and implementation of international and regional standards with the aim of aligning it with the new edition of ISO/IEC 21:1999 (ISO/IEC 21-1:2005 and ISO/IEC 21-2:2005) Guideline, and reach the effective operation of the withdrawal mechanism for conflicting standards. 2.4.3. Technical Committees for standardisation Currently, Ukraine has the following TCs for standardisation in the gas and electricity sectors: Gas sector ТC 8 Steel tubes and cylinders ТC 17 Household equipment working on gas, fluid and solid fuel ТC 65 Instruments of industrial control and regulating ТC 122 Analysis of gases, fluid and solid substances ТC 133 Natural gas ТC 138 Normalization of oil and gas (NEFTEGAZ) normalization 7 GOST (Russian: ГОСТ) refers to a set of technical standards maintained by the Euro-Asian Council for Standardisation, Metrology and Certification (EASC), a regional standards organization operating under the auspices of the Commonwealth of Independent States (CIS). 8 Reprinting with information annex of the national introduction 13

ТC 146 Materials, equipment, technologies and installations for oil and gas industry ТC 162 Energy systems management and related processes of information exchange Electricity sector ТC 13 Standardisation of household appliances and devices ТC 22 Electromagnetic compatibility and resistance of radio electronic and electrotechnic devices ТC 27 Products of heavy electrical engineering ТC 30 Transformers and high-voltage equipment ТC 31 Power converters ТC 42 Explosive and mine electrical appliances ТC 48 Energy saving ТC 57 Equipment for air conditioning and ventilation ТC 73 Low-voltage switch gear equipment ТC 74 Insulations ТC 90 Measuring instruments of electricity and magnetic quantities ТC 91 Mineral processing equipment ТC 131 Electrically insulating and cable engineering ТC 137 Lamps and related equipment ТC 162 Energy systems management and related information sharing processes The activity of these existing TCs is monitored periodically through annual reports, which is based on the Soviet style system and not on European best practice. In accordance with Point 8, Article 56, Section 4 of the Association Agreement with the EU, Ukraine has to gradually fulfill all requirements and guidelines that are applied to full members of the European organizations for standardisation, including requirements and guidelines for the following: conformity of Ukrainian TC with the following generally applicable international and European standardisation principles: representation of all stakeholders use of the consensus principle independence of secretariat public discussion of draft standards differentiation of standardisation fields between different TC. conformity of structures of Ukrainian TCs for standardisation with the structure of international and European organisations for standardisation. 2.5. Participation in international and regional standardisation 2.5.1. Participation in international standardisation At present, Ukraine, represented by the Department of Technical Regulation of the Ministry of Economic Development and Trade, is the full member of the following international organisations: ISO, and participates in the work of the following TC in gas sector: ISO/TC 5 Steel and cast-iron tubes and metallic fittings (O-member 9 ) 9 Observer Member 14

ISO/TC 5/SC 1 Steel tubes (O-member) ISO/TC 11 Boilers and pressure vessels (P-Member 10 ) ISO/TC 30 Measurement of fluid flow in closed conduits (O-member) ISO/TC 58 Gas cylinders (O-member) ISO/TC 67 Materials, equipment and offshore structures for petroleum, petrochemical and natural gas industries (P-Member) ISO/TC 67/SC 2 Systems of pipeline transportation (P-Member) ISO/TC 67/SC 5 Casing, pumping and compressor and drill pipes (O-member) ISO/TC 109 Oil and gas burners and support equipment (O-member) ISO/TC 158 Analysis of gases (P-Member) ISO/TC 161 Control and protective devices for gas and/or oil burners and appliances (O-member) ISO/TC 185 Safety devices for protection against excessive pressure (O-member) ISO/TC 193 Natural gas (P-Member) ISO/TC 193/SC 1 Analysis of natural gas (P-Member) IEC, and participates in the work of the following TC in electricity sector: IEC/TC 2 Rotating machinery (O-Member) IEC/TC 13 Equipment for measuring electrical energy and load control (O-Member) IEC/TC 14 Power transformers (P-Member) IEC/TC 20 Electric cables (O-Member) IEC/TC 28 Insulation co-ordination (P-Member) IEC/TC 31 Equipment for explosive atmospheres (P-Member) IEC/TC 31M Non-electrical equipment and protective systems for explosive atmospheres areas (P- Member) IEC/TC 33 Power capacitors and their applications (O-Member) IEC/TC 38 Instrument transformers (P-Member) IEC/TC 44 Safety of machinery Electrotechnical aspects (O-Member) IEC/TC 57 Power systems management and associated information exchange (P-Member) IEC/TC 61 Safety of household and similar electrical appliances (P-Member) IEC/TC 77A - Low frequency phenomena (O-Member) IEC/TC 77B - High frequency phenomena (O-Member) IEC/TC 77C - High power transient phenomena (O-Member) IEC/TC 81 Lighting protection (O-Member) IEC/TC 95 Measuring relay and protective equipment (O-Member) It is expected that over the 2015 to 2018 period Ukraine will continue with its existing format of relations with ISO and IEC, but will substantially improve the quality and professionalism of its cooperation with these organisations. 2.5.2. Participation in European standardisation Currently, Ukraine, represented by the Department of Technical Regulation of the Ministry of Economic Development and Trade, is an affiliate member of following European organisations: CEN, and takes part in the work of the following TC for standardisation of gas sector: 10 Participating Member 15

ECISS/TC 110 Steel tubes, and iron and steel fittings CENELEC, but does not take part in any work of TCs for standardisation in electricity sector. It is expected that over the 2015 to 2018 period Ukraine will support the participation of its national TCs for the gas and electricity sectors in European TCs dealing with the development of following standards: gas standards, namely: CEN/TC 12 Materials, equipment and offshore structures for petroleum, electrochemical and natural gas industries CEN/TC 23 Transportable gas cylinders CEN/TC 54 Unfired pressure vessels ECISS/TC 110 Steel tubes, and iron and steel fittings electricity standards, namely: CEN/CLC/TC 2 Energetics CLC/TC 2 Rotating machinery CLC/TC 8X System aspects of electrical energy supply CLC/TC 11 Overhead power transmission lines of alternating current with the voltage above 1 kv (1,5 kv of direct current) CLC/TC 13 Electrical energy measurement and control CLC/TC 14 Power transformers CLC/TC 17AC High-voltage switchgear and control gear CLC/TC 17B Low-voltage distribution and control equipment CLC/TC 22X Power electronics CLC/TC 31 Electrical apparatus for potentially explosive atmospheres CLC/TC 44X Safety of machinery: Electrotechnical aspects CLC/TC 61 Safety of household and similar electrical appliances CLC/TC 81X - Lighting protection CLC/TC 116 Safety of motor-operated electronic tools 2.5.3. Participation in EASC standardisation. Currently, Ukraine, represented by the Department of Technical Regulation of the Ministry of Economic Development and Trade, participates in the following interstate gas and electricity TCs: Gas sector ITC 007 - Pipes and steel tanks ITC 052 - Natural gas ITC 155 - General mechanic pipeline connections ITC 260 - Chemical and oil/gas refining equipment ITC 523 - Technique and technology of extraction and processing of oil and gas Electricity sector ITC 036 - Power transformers ITC 042 - Mine and explosion-proof equipment ITC 111 - Energy saving ITC 232 - Apparatus for measuring electric energy and load control ITC 233 - Measuring equipment for electrical and electromagnetic quantities ITC 244 - Stationary energy equipment; ITC 333 - Rotating electrical machines ITC 506 - Radial ventilators and tubeaxial fans based on contact-free AC/DC motors 16

Ukraine does not intend to change its format of cooperation with EASC Technical Committees. 17

3. Priority standards identified by the ITS Experts for Ukraine As part of the activities of the ITS team in preparation of the development of the Road Maps and Action Plans for the PCs, a poll was carried out to identify priority gas and electricity standards for all PCs. The results showed that PCs selected as high priority six areas of adoption of electricity standards and four key gas standards. More detailed regional information can be found in the document Regional Background to the Road Maps and Action Plans for the harmonisation of standards and codes in electricity and gas sectors for the INOGATE Partner Countries. Below is a more detailed analysis of the standards prioritised by Ukraine and their inclusion in the country s National Programme of adoption of standards. Annexes I, II and III provide further detailed information of the prioritised lists of standards. 3.1. Ukraine s National Programme for adoption of priority electricity standards Analysis of the extended list of the ECT Secretariat's standards (319 standards), updated by the ITS experts at the beginning of 2013, highlighted 38 key standards. ITS considered that the adoption of these standards by Ukraine is of the highest importance in order to comply with the objectives of the ECT. These 38 standards comprise a regional group (23 standards) that is important for all PCs and a national group (15 standards) that is important specifically for Ukraine. As of the beginning of 2013, the country had adopted 75 standards from the list of generally applicable electricity standards on the list updated by the ECT Secretariat, including 10 standards defined by ITS experts as of the highest importance for Ukraine (1 standard from the regional list and 9 standards from the national list). However, Ukraine was unable to adopt any of the priority electricity standards in 2013 and at the moment of publishing had not confirmed the adoption of 14 electricity standards which had been planned for 2014. Considering the standards included in the national standards programme for 2015 that have been implemented, it is expected that by the end of 2016 Ukraine will have adopted 106 out of 319 generally applicable standards on the list of the Energy Community Secretariat updated by ITS experts, including 26 11 out of 38 standards identified by ITS experts as highly important. Additionally, it is recommended that from 2015 to 2016 Ukraine adopts a further 9 valuable standards, which are missing from the updated list of the Energy Community Secretariat (319 standards), but which are directly referenced in the listed standards below. Таble 3.1. List of standards on specifications and requirements for electrical equipment which are not listed by the Energy Community Secretariat but recommended by the ITS Expert team for national adoption by Ukraine in 2014-2016. # IEC reference ТC Description 2014 2015 2016 1 IEC 60376 TC 10 Specification of technical grade sulphur hexafluoride (SF6) for use in electrical equipment 2 IEC 60422 TC 10 Mineral insulating oils in electrical equipment - Supervision and maintenance guidance 3 IEC 60567 TC 10 Oil-filled electrical equipment - Sampling of gases and of oil for analysis of free and dissolved gas - Guidance 1 1 1 11 13 standards of the regional priority and 13 standards of the national priority 18

# IEC reference ТC Description 2014 2015 2016 4 IEC 60815-1 TC 36 Selection and dimensioning of high-voltage insulators intended for use in polluted conditions Part 1: Definitions, information and generic principles 5 IEC 60815-2 TC 36 Selection and dimensioning of high-voltage insulators intended for use in polluted conditions Part 2: Ceramic and glass insulators for a.c. systems 6 IEC 61462 TC 36 Composite hollow insulators - Pressurized and unpressurized insulators for use in electrical equipment with rated voltage greater than 1000 V 7 IEC 61869-1 TC 38 Instrument transformers Part 1: General requirements 8 IEC 61936-1 TC 99 Power Installations Exceeding 1 kv a.c - Part 1: Common rules 9 IEC 61936-2 TC 99 Power Installations exceeding 1kV ac - Part 2: Particular requirements for transmission and distribution installations 20 people per million habitants die annually from electric shock in Ukraine compared to 5-7 people which is the average in EU Member States. 80% of fatalities take place in low-voltage networks due to the fact that the population is habitually in contact with the low-voltage installations in a home setting. In order to decrease the number of electric shock injuries, it is recommended that Ukraine also introduces the IEC 60364 series of standards in its entirety through its translation into Ukrainian. 3.2. Ukraine s National Programme for adoption of priority gas standards Prior to 2014 Ukraine had adopted 36 priority gas standards from the modified list of the Energy Community Secretariat (132 standards) modified by the ITS experts, including 23 that had been translated by the previous INOGATE project Harmonisation of oil and gas technical standards and practices in Eastern Europe and the Caucasus. The majority of these adopted standards are related to the activity of UKRTRANSGAZ, the metrological gas centre in Boyarka and PJSC «Ukrgazdobycha». During the period from 2015 to 2017 it is expected that Ukraine will adopt the following standards from the list of the ECT (132 standards): in 2015-7 standards, including 5 standards which had been translated within the framework of the previous INOGATE Project and adopted for the first time, and two standards for the second time as their new versions were adopted by EU countries. These versions are harmonized with the 2004/22/EC Measuring Instruments Directive and it is important to adopt them identically. in 2016-5 standards, including 3 standards translated within the framework of the previous INOGATE Project. in 2017 14 standards, including 11 standards translated within the framework of the previous INOGATE Project that will be adopted for the first time. Based on the implementation of the National Standardisation Plan, It is expected that by the end of 2017 Ukraine will adopt 81 priority gas standards, including 60 standards translated within the framework of the previous INOGATE project. 1 1 1 1 1 1 19

3.3. Procedure for the adoption of Codes of Practice Ukraine has shown great interest in the implementation of European functional standards for gas infrastructure, and the TCs are currently involved in the development of these standards. However, the European functional standards need to be complemented by national gas standards, which will provide more detail regarding the application of the European functional standard. The Energy Community Secretariat s (Regulation No: MC2/4-3/04-04-07ECS) "Generally applicable standards - natural gas" recommends the use of technical rules developed by DVGW and OEVGW to complement EU and international standards. ITS experts support this recommendation for Ukraine. As DVGW is an independent organisation, Ukrainian gas companies will have to arrange for an agreement to apply these technical rules within their country. Currently, there is no legislative framework in Ukraine for the implementation of generally accepted codes of practice. In Germany the implementation of generally accepted codes of practice is regulated by the Energy Industry Act of Germany (2005), 49 Requirements for energy enterprises. However, before it is possible to adopt the above-mentioned European legislation in Ukraine, it is suggested that DVGW codes of practice are adopted as standards for Ukrainian companies. Ukrtransgas has already sent a request to DVGW with the aim of obtaining the advised codes of practice. Annex III contains DVGW technical rules that are recommended by ITS Experts to implement in Ukraine. 20

4. Action Plan This Action Plan provides support and a clear guidance to Ukraine s effort to harmonise its standardisation systems with EU best practice. It was prepared taking into account the current status of Ukraine s standardisation system and the requirements for it to be in line with the ECT and European best practice, based on the Road Map. The Action Plan provides a number of key steps Ukraine must take in the short term (until 2018) in order to begin the harmonisation process. Once Ukraine completes this phase, the country should identify its next objectives and the subsequent actions to be taken to continue the harmonisation process. Annex I and II provide a complete list of electricity and gas standards recommended for adoption by Ukraine in line with the activities included in the Action Plan. Below is a list of key actions and a timeline in order to ensure that the process is undertaken in a balanced way 4.1. Key areas and stages of activities to ensure effective adoption of international and European electricity and gas standards by Ukraine As described in Section 2: Current standardisation situation, expected achievements for 2018 and recommendations, it is indispensable for Ukraine to adhere to EU New Approach Directives which constitute part of their Association Agreement and DCFTA with the European Union, as well as to specifically undertake EU best practice. 4.1.1. Compliance of the national system of technical regulations with the principles of the EU New Approach On-going and planned activities to be completed by the end of 2018: # Activities Responsible entity and form of deliverables Timeframe 1 Revise current national technical regulations aiming to bring them in line with relevant EU New Approach Directives: Directive 2014/34/EU - ATEX - Equipment for explosive atmospheres Directive 2014/68/EU - PED - Pressure Equipment Directive 2014/32 / EU - MID Measuring Instruments Directive 2014/29/EU - SPVD - Simple Pressure Vessels Directive 2009/142/EC - GAD - Gas Appliances (revision only) Ministry of Social Policy; Public Administration of Labour Ministry of Social Policy; Public Administration of Labour Ministry for Economic Development and Trade Ministry of Social Policy; Public Administration of Labour Ministry for Economic Development and Trade 2 Develop draft national technical regulations equivalent to: Directive 2009/125/EC - ErP - Ecodesign requirements for energy-related products FW Ministry for Regional Development, Construction and Housing and Utility Sector; State Agency for Energy Efficiency and Energy Saving in Ukraine; Ministry of Ecology and Natural Resources of Ukraine 31.12.2017 31.12.2017 31.12.2015 31.12.2016 31.12.2016 31.12.2017 21

640/2009 - Ecodesign requirements for electric motors ( EC Regulation) Ministry of Regional Development, Construction and Housing and Utility Sector; State Agency for Energy Efficiency and Energy Saving in Ukraine; Ministry of Ecology and Natural Resources of Ukraine 31.12.2018 4.1.2. Compliance of the national standardisation system with the generally accepted international and European principles Activities completed so far: # Activities Responsible entity and form of deliverables 1 Establish an independent National Standardisation Body which is a state enterprise not subject to privatization and established by the central executive body carrying out state policy in standardisation sphere Ministry for Economic Development and Trade, an Ordinance of the Cabinet of Ministers of Ukraine dated 26.11.2014 1163-р On defining a state enterprise performing duties of the National Standardisation Body On-going and planned activities to be completed by the end of 2016: # Activities Responsible entity and form of deliverables Timeframe 1 Improvement of the legal framework of the NSB, including development of the organization chart; Statute of Steering Board and its composition; Charter of the Appeals Commission, its composition and procedures for the appeals proceedings. Ministry for Economic Development and Trade 31.12.2015 2 Determination of rules and procedures of national standardisation with the aim of bringing them in line with both current legislation and international practice, including questions on revision and development of new versions of basic standards of the national standardisation system, and development of National Standardisation Body 12 31.12.2015 12 Provided it is established 22

the standard on the procedures of creation, operation and termination of technical committees for standardisation. 3 Develop a phase plan of propositions aiming to bring the structure of Ukrainian technical committees in line with the structure of ISO, IEC, CEN and CENELEC technical bodies. National Standardisation Body, Standardisation Technical Committees 31.12.2015 4.1.3. Country's participation in international, European and interstate standardisation Activities completed so far: # Activities Responsible entity and form of deliverables 1 Inform ISO and EASC about the establishment of the National Standardisation Body National Standardisation Body, administrative document On-going and planned activities to be completed by the end of 2015: # Activities Responsible entity and form of deliverables Timeframe 1 Renew agreements on affiliated membership of Ukraine in CEN and CENELEC due to the establishment of a new National Standardisation Body 2 Guarantee participation of Ukraine in the work of CEN and CENELEC technical committees for standardisation, establishment of cooperation on the level of technical committees. National Standardisation Body 31.12.2015 National Standardisation Body 31.12.2015 4.2. Adoption and introduction of gas and electricity standards In particular, relating to gas and electricity standards, the list of actions (below) will support Ukraine in adopting the 319 electricity standards and 132 gas standards of the lists prepared by the ITS experts. 4.2.1. Adoption of priority electricity standards in Ukraine Activities completed so far # Activities Responsible entity and form of deliverables 23

1 Implement the National Standardisation Plan for 2014 concerning the adoption of generally accepted electricity standards of the Treaty establishing the Energy Community (refer to the Road Map, Annex I) 2 Prepare and approve the National Standardisation Plan for 2015 concerning the adoption of generally accepted electricity standards of the Treaty establishing the Energy Community TCs with the scope of activity covering electric power industry, National Standardisation Body, adopted standards TCs with the scope of activity covering electric power industry, National Standardisation Body, approved Standardisation Plan On-going or planned activities to be completed by the end of 2015: # Activities Responsible entity and form of deliverables Timeframe 1 Identify general applicable standards that are necessary to be adopted by methods of endorsement, reprinting and translation. Split the work on standardisation amongst TCs 2 Implement the National Standardisation Plan for 2015 to the extent concerning the adoption of generally accepted electricity standards of the Treaty establishing the Energy Community (refer to the Road Map, Annex I) 3 Prepare and approve the National Standardisation Plan for 2016 concerning the adoption of generally accepted electricity standards of the Treaty establishing the Energy Community National Standardisation Body, TCs with the scope of activity covering electric power industry, lists of standards TCs with the scope of activity covering electric power industry, National Standardisation Body, adopted standards TCs with the scope of activity covering electric power industry, National Standardisation Body, approved Standardisation Plan 31.01.2015 31.12.2015 31.12.2015 4.2.2. Adoption of priority gas standards in Ukraine Activities completed so far: # Activities Responsible entity and form of deliverables 1 Transfer the 12 interstate standards prepared with the assistance of the INOGATE Programme to Ukraine ITS Project, standards received 24