Experts have repeatedly warned the Ministry for Ecology and Natural Resources that Ukraine will sooner or later have to account for utilization of the so-called Kyoto money and, in case of some financial infringements, to be held responsible. They also warned that, if Ukraine failed to meet the terms of the treaty, Japan would have the right to demand that the money – 470 million euros – be returned. This time seems to have come. Andrii Mokhnyk, Minister of Ecology and Natural Resources, said at a briefing last Monday that the Japanese side was now dissatisfied with the way the Kyoto treaty was being observed and was even ready to abrogate it. The minister does not rule out that Ukraine will have to return the obtained money.
“We have a critical situation as far as Kyoto Protocol money is concerned. There has been no movement of funds in the past three months. Accordingly, the Japanese side has warned that it is prepared to abrogate the agreement and discontinue cooperation. Therefore, our ministry has drawn up some amendments to resolutions Nos. 1404 and 444, which could break the deadlock and continue these activities,” Mokhnyk pointed out.
It will be recalled that Ukraine received the “green investments” back in 2009 for selling surplus quotas under the Kyoto Protocol. We pledged to use this money before the end of 2012 for winterizing schools, hospitals, and other social facilities in order to save electricity. National Ecological Center experts inspected the renovated facilities last summer and pointed out a very low quality of work. The Day has also written before about the attitude of the State Ecological Investment Agency which is in charge of “green money” utilization. They were trying to persuade us that the situation was under control and the organization had even managed to save funds for renovating another hundred of facilities. They also promised to carry out seven major projects before the end of the year, including modernization of Kyiv subway trains and replacement of law-enforcement bodies’ automobiles.
It has become clear only now to what extent the situation is under control. Experts believe that the Japanese side’s patience is wearing thin. “From the very outset, Ukraine has been doing things very slowly and all the bidding procedures have not been transparent due to corruption schemes. Our state has renegotiated this treaty several times in an attempt to have it extended until the end of 2015. But, as far as I know, the Japanese side did not agree to this. It irritates them that these funds remain unutilized and Ukraine is doing nothing. But we are supposed to submit both financial and technical reports. Technical reports were to have been presented in March-April this year. But there is so far nothing to report,” says Iryna Stavchuk, a climate changes expert at the National Ecological Center. “So Ukraine should immediately show Japan that it is prepared to correct its mistakes as well as hold fair and transparent biddings and bring to justice the bureaucrats who are suspected of Kyoto money laundering and the firms that have poorly repaired social facilities. Although the leadership of this country has changed, the sane people still remain behind in the provinces. It is necessary to consult with the public and select projects as soon as possible and immediately begin to carry them out.”
Even if it comes to returning the funds, we will be unable to do so, Stavchuk says. A part of the received amount has already been spent on carrying out about 500 projects. And the estimate for the still-to-be-launched ones will have to be revised because the dollar’s increased rate is sure to raise the price of building materials. The budget is unlikely to have an extra half billion euros. So, to retain its reputation and not to lose the Japanese partners, the ministry must show as soon as possible that it is ready to rectify the situation.
