Report: Ukraine pushes EU energy reforms and interconnections forward amid wartime challenges 

With winter approaching and wartime pressures mounting, Ukraine’s integration with the EU energy markets is critical on three fronts: safeguarding supply through the cold season, boosting market confidence, and advancing Europe’s shared decarbonised future.

The Energy Community Secretariat’s Q2 2025 Ukraine Energy Market Observatory Report confirms that the country is pressing ahead with EU-aligned reforms and expanding cross-border electricity and gas trade despite martial law. A new draft law to transpose the Electricity Integration Package (EIP), adopted in the first reading, prepares Ukraine for accelerated integration with the EU's electricity market ahead of accession. Simultaneously, the draft law on the transposition of the TEN-E Regulation is now before Parliament, a step that could stimulate priority cross-border infrastructure projects and cement Ukraine’s role in Europe’s long-term energy security. The report's key takeaways are: 

1. Increasing legislative alignment with EU rules is paving the way for the regulatory certainty needed to attract capital to energy markets, even amid war. 

Ukraine advanced key draft laws, including Draft Law 12087-d to transpose the EIP, which passed its first reading in July 2025. Amendments to the Transmission and Distribution Network Codes brought national practices closer to EU standards on emergency procedures and voltage quality, critical for system stability and consumer protection. Updated renewables auction rules and a proposed new market premium mechanism aim to restore investor confidence in green energy despite unstable markets and wartime risks.  

2. Cross-border electricity and gas trade with the EU is expanding, laying the groundwork for deeper market integration and renewable growth 

In Q2 2025, electricity export capacity from the Ukraine–Moldova block to the EU rose to 650 MW (up 18% from March 2024), helping keep the grid stable and reduce the need to curtail renewable energy generation. Two key steps toward market integration were also taken: Ukraine expanded cross-border capacity with Moldova, Hungary, Romania, and Slovakia, with long-term and intraday auctions due by late 2025; and in August, the wholesale electricity price cap was raised to better reflect regional market dynamics. Full compliance with the Energy Community acquis — essential for deeper EU market integration — still depends on further reforms. 

On the gas side, Ukraine advanced efforts to diversify routes and strengthen supply security. Together with its partners, it opened a new option for companies to book transport along the Trans-Balkan Corridor, creating opportunities for gas flows between Ukraine and Southeast Europe, though actual use has so far been limited. In June, Poland’s Gaz-System and Ukraine’s GTSOU also agreed to temporarily double firm gas capacity toward Ukraine, from around 6 to 12 million cubic meters per day, enough to meaningfully strengthen winter supply security. 

3. Alignment with the EU’s TEN-E Regulation is advancing, an important step for accelerating cross-border projects that underpin long-term energy security. 

In May 2025, Ukraine consulted the Energy Community Secretariat on a draft law to transpose the TEN-E Regulation, the framework governing priority cross-border energy infrastructure projects. The Secretariat urged clearer definitions, project eligibility, and state aid rules, while the European Commission warned that Ukraine’s decentralised permit process could delay approvals. Still, with the July 2025 registration of draft Law No. 13450 on Energy Infrastructure Projects of Public Interest, Ukraine signaled its intent to align infrastructure planning with the EU frameworks. 

4. Regulatory stability at risk as NEURC operates below capacity 

Delays in appointing new members to Ukraine’s energy regulator (NEURC) —  down to four of seven seats — risk decision-making deadlock. With EU Delegation and Secretariat observers monitoring the selection process, timely appointments are critical to safeguard regulatory independence, investor confidence, and continued EU energy acquis alignment. 

The full Q2 2025 Ukraine Energy Market Observatory Report is available for download in the sidebar, along with the Q1 Report.