The report, titled Energy Strategy of Ukraine through 2035: Security and competitiveness, envisages full-scale integration of the country’s energy sector into the European energy market – an intriguing development given the previous government’s decision to side with Russia to help its ailing economy led to its overthrow and the disaster zone the country has become today.

As former US presidential hopeful Ron Paul put it, by the end of 2013 Ukraine’s government was “in ruins”

“Desperate for an economic bailout and then-president [Viktor] Yanukovych first looked west to the US and EU before deciding to accept an offer of help from Russia. Residents of south and east Ukraine, who largely speak Russian and trade extensively with Russia, were pleased with the decision,” Paul said in his blog in February.

“West Ukrainians who identify with Poland and Europe began to protest. Ukraine is a deeply divided country and the president came from the eastern region.”

Ukraine’s new White Paper, however, acknowledges Ukraine’s low energy efficiency. Subsidies and support programs have resulted in the understatement of energy prices, which in turn have discouraged energy-intensive industries from improving efficiency.

The poor technical condition of the country’s energy facilities also present challenges, as most of Ukraine’s generating units and energy networks are operating beyond their intended life cycle.

The report identifies thermal and nuclear power plants as those most in need of upgrades or replacement.

While urgent reform and investment is also required in the coal mining industry to solidify its role in ensuring Ukraine’s energy security, the base area of Ukraine’s coal reserves is in Donbass, a region at the heart of the current conflict.

And while the new White Paper flagged Ukraine’s commitment towards nuclear power as a means of meeting its energy requirements, analysts say this strategy won’t be without challenges.

The World Coal Association said the poor condition of Ukraine’s uranium mining industry and complete lack of nuclear fuel production would further complicate attempts to improve performance in the sector.

“As a result, despite projections in the new strategy, coal-fired power stations will most likely relegate nuclear to satisfy base load demand,” the WCA said.

The paper takes into account attempts by the UN Framework Convention on Climate Change to limit greenhouse gas emissions; however, given Ukraine’s need to develop its economy and resources, the paper states that radical attempts to decarbonise are not feasible.

Thousands of coal miners from eastern Ukraine took to the streets last month in Kiev protesting the closure of coal mines and demanded salary debts be repaid, asking for dialogue with Prime Minister Arseny Yatsenyuk, who did not go out to meet the protesters, and neither did any of his ministers.

Ukraine’s new strategy will be implemented in three phases:

• ”Reform Stage” (2015-2020) – Privatisation and energy market reform, with key milestones including the removal of subsidies, privatisation of the energy sector and development of programmes for closer integration into the European energy market;
• ”Modernisation and Corporate Development Stage” (2021-2025) – Once priority political and economic objectives are realised, Ukraine can start transitioning towards a liberalised energy market environment, which would include greater European integration, development of comprehensive energy and environment taxes and tax reforms to encourage investment in the mining sector;
• ”Integration and Innovation” (2025-2035) – The government anticipates a state system of support for scientific and technological innovation, with priorities including finance for modernisation of energy facilities, developing technology to promote low carbon growth and active involvement in international projects to enhance energy security.

One of the paper’s major development priorities is replacing and modernising the nation’s coal-fired power stations forms.

Over coming decades, the Ukrainian government will work to ensure all facilities comply with European environmental requirements.

The government also aims to drive reform and modernisation within the coal mining sector. The aim of the program will be to transform the industry into an unsubsidised and self-sustainable-energy sector, in which by 2035, the government projects production to reach 42.8 million tons.

Ukraine’s energy strategy is highly optimistic about the future.

“The likelihood of Russia providing the expertise required to upgrade Ukraine’s nuclear facilities seem low, so any real diversification of the country’s energy mix would seem unlikely,” the WCA said.

“As Ukraine seeks to move away from Russian dependence, further problems continue to arise. It had been suggested that ships transit through the Bosphorus Straits towards a proposed LNG terminal in the Black Sea, however Turkey has come out in opposition of the waterway being used amid concerns of overcrowding.”

The report sets out plans for Ukraine to transition away from fossil-fuels, however these targets are highly ambitious and not ones likely to be achieved.

For example, the paper suggests that ambient power will supply 2.4 million tonnes of coal equivalent of Ukraine’s energy balance by 2035, yet the technology is in its infancy and no trends suggest that it will become commercially viable in the time-frame of the report.

Coal has the potential to be the guarantor of Ukraine’s energy supply,” the WCA said.

“High efficiency low emissions (HELE) coal-fired power generation can play a huge role in minimising carbon dioxide emissions whilst providing legitimate economic development and poverty alleviation efforts.”