In December 2012, the Annual Action Programme 2012 part 2 was adopted by the European Commission following the Ukrainian government’s interest in further deepening and increasing sustainability of the reforms initiated in the energy sector thanks to the Annual Action Programme 2007 Energy Sector Policy Support Programme. This previous program aimed at supporting Ukraine on the path of comprehensive reforms in the energy sector (particularly through the use of the budget support instrument); this new operation particularly focuses on supporting the continuing implementation of the energy sector strategy, including the deepening of reforms in the key areas, facilitating the respect of Ukraine's commitments under the EnCT, strengthening the financial sustainability in the energy sector and ensuring greater transparency and environmental awareness in the energy sector. When this assignment was launched, the next step in the process of programme preparation was to start preparation of the Financing Agreement (FA) in line with 2012 Budget Support Guidelines, including the detailed Technical and Administrative provisions. AETS consortium was therefore chosen to assist the Ministry of Energy and Coal Industry of Ukraine and the EU Delegation to Ukraine in this process and particularly in the selection of performance indicators in the field of the LCP directive, oil product quality and oil stock (EnCT commitments). In addition, the government requested technical assistance to support implementation of EnCT commitments. This was also in the scope of work of the 6-expert team chosen for this assignment.

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