Energy cooperation between Ukraine and the EU aims to strengthen energy security, competitiveness and stability, which is necessary to stimulate economic growth and progress in integration into the European market. The EU-Ukraine Association Council is an agreement-instituted body, namely the EU-Ukraine Association Agreement. With regard to the list of the EU acquis, the annex calls for an update to take account of the substantial development in the energy acquis that has taken place in the EU since the conclusion of the agreement negotiations. As a result, several EU legislative acts listed in the initial annex of the agreement are no longer in force, have been repealed or amended, while new acts have been adopted by the European Union. These amendments require an update of Schedule XXVII of the agreement to ensure consistency in Ukraine`s efforts to reconcile with the current state of the EU acquis. As a result, Ukraine`s obligations to align its legislation with EU energy ownership do not change EU rules or their scope. In addition, Ukraine`s obligations in the energy sector have expanded, both because of its membership in the Energy Community since 2011 and because of the implementation of the EU acquis, as mentioned in Appendix XXVII of the agreement. In addition, eu-Ukraine cooperation in the energy sector was further strengthened in 2016 by the signing of the EU-Ukraine Agreement on a Strategic Energy Partnership. The memorandum supports the commitment to economic integration and political association and sets out the objective of achieving full integration of energy markets on the basis of the five dimensions of the EU Energy Union. The above developments require updating the list of the EU acquis in Schedule XXVII of the agreement.
The proposed legislative act consists of an update of the list of the EU acquis contained in Schedule XXVII of the agreement, to which Ukraine has committed to harmonising its domestic legislation, and an additional set of provisions to support Ukraine`s process of alignment of EU energy ownership into its national legislation. The political provisions of the treaty were signed on 21 March 2014, after a series of events that blocked their ratification led to a revolution in Ukraine and the fall of Viktor Yanukovych, then President-in-Office of Ukraine.  This fall was caused by Yanukovych`s last-minute refusal to sign the agreement. Instead, Russia, Ukraine`s second-largest trading partner, presented a link to the existing customs union of Russia, Belarus and Kazakhstan as an alternative.   After March 21, 2014, trade integration issues were temporarily suspended (pending the outcome of the Ukrainian presidential elections on 25 May 2014) until the European Union and new Ukrainian President Petro Poroshenko on 27 June 2014 signed the economic component of the Association Agreement between Ukraine and the European Union, which is the „first step“ Ukraine`s move towards EU membership.  – Development of competitive, transparent and non-discriminatory energy markets, based on EU regulations and standards, through regulatory reforms.