Ukrainian Government Empowered Ukrainian Chamber of Commerce and Industry to Issue Certificates of Origin Evidencing Share of the "National Content" in Renewable Energy-Generating Facilities

It is generally accepted that Ukraine offers one of the most attractive feed-in tariffs in the world for electricity produced from renewable energy-generating facilities (Ukrainian legislation refers to the feed-in tariff as "green tariff") (the "Green Tariff"). For projects construction of which commenced in 2012 the Green Tariff is eligible only to those, where renewable energy-generating facilities meet the so called "national content requirement", i.e. share of materials, supplies, capital assets, works and services of Ukrainian origin in the construction value of the renewable energy-generating facility (the "National Content"). In 2012 one of the main obstacle in realization of renewable energy projects in Ukraine is that Ukrainian legislation has been missing the procedure for calculating a share of the National Content and the procedure for issuing certificates of origin for goods, required to prove the Ukrainian origin of the goods.

On 24 September 2012 the Cabinet of Ministers of Ukraine passed Resolution No. 878 (the "Resolution"), effective as of 28 September 2012, that empowers the Chamber of Commerce and Industry of Ukraine and regional Chambers of Commerce and Industry to issue relevant certificates of origin of goods that shall confirm the share of National Content in the construction price of the renewable energy-generating facilities.

Additionally, the Resolution determines that special expert entities, which meet the requirements set by the Ministry of Regional Development, Construction and Housing and Communal Services of Ukraine (the "Ministry"), shall establish a share of the National Content in the construction value of renewable energy-generating facilities. Information on such special expert entities shall be published on the Ministry's official website.

Notwithstanding the above the Ukrainian government has not yet adopted the applicable procedure for calculating of the National Content, though, it had been approved by the National Electricity Regulatory Commission on 14 June 2012. Such situation is considered by investors as a major obstacle in implementation of renewable energy projects under the Green Tariff mechanism.

For further information please contact associates Yaroslav Petrov and Yuriy Radko