Fossil-Fuel Subsidies in the EU’s Eastern Partner Countries

Annex H. Covid-related measures

Table A H.1. Main government COVID-19 related support measures in the energy sector in EaP countries

	Total COVID-related public support	Specific energy-related support measures	Estimated amount for energy-related measures	Source
Armenia	AMD 150 billion (USD 305 million)	Reimbursement of electricity and natural gas utility bills of eligible consumers. A total of 728 000 household users of electricity and 503 000 households using gas benefited from this measure in February 2020. The support is transferred directly from the state budget to the utilities selling natural gas and electricity on the basis of clearly identified consumers who need help.	AMD 4.3 billion (USD 9 million)	https://armeniasputnik.am/armenia/20200430/22901982/petrvari-komunalnern-el-kpoxhatucven-pashinyany-haytnec-ovqer-kstanan-ajakcutyuny.html
Azerbaijan	AZN 2.6 billion (USD 1.5 billion)	Government support programme “100 kWh of preferential light limit for the population in April-May 2020”.	AZN 10 million (USD 5.9 million)	https://cabmin.gov.az/az/document/4367/
Belarus	BYN 5 to 6 billion (USD 2 to 2.5 billion)	Partial reimbursement (up to 20%) for households was introduced for costs incurred for improving the power supply of the housing stock (heating, hot water supply and cooking), including expenses for the purchase of equipment to incentivise increased electricity use for these services. The individual compensation cannot be higher than 40 basic units (1 basic unit = BYN 27, about USD 11, or about USD 495 in total). An estimated 15 000 consumers will benefit from this measure. The cost of this direct subsidy will be covered by local budgets. The Belarusian government has not yet determined the exact timeframe for transition to a full cost recovery for heat and gas supply services for households.	BYN 15.2 million (USD 6.2 million)	Decree of the President of the Republic of Belarus No 127 of 14 April 2020 on Recovery of Costs Related to the Power Supply of the Existing Housing Stock
Georgia	GEL 3.5 billion (USD 1.1 billion)	Reimbursement of household utility bills for the three months of March – May 2020. Only households that did not consume more than 200 kWh of electricity and/or 200 m3 of natural gas received the subsidy. In monetary terms, in the case of electricity, JSC “Telasi” clients received up to GEL 37 per month, while the subsidy for JSC “ENERGO-PRO” clients was GEL 36 per month. “Tbilisi Energy” natural gas clients could receive a subsidy only if their bill was not higher than GEL 92. “SOCAR” users received a subsidy of GEL 114. More than 1.2 million electricity customers and more than 670 000 natural gas customers participated in the subsidy scheme. All consumers eligible for this state support could decline it. In these three months, more than 9 600 consumers declined to receive the subsidy as a sign of solidarity. In March 2020, 3 534 consumers declined to join the scheme; in April, more than 4 600 consumers declined.	GEL 150 million (USD 49 million)	https://bit.ly/31bOSr1, https://bit.ly/2YnlOuO, https://bit.ly/2Yrd33a, https://bit.ly/3es8J9g, https://bit.ly/3hRmn83
Moldova	LEU 2.5 billion (USD 150 million)	No specific direct support scheme identified. However, a regulation banning the disconnection of customers in case of late payment for communal services, including for electricity and heat, was introduced.		Government of Moldova
Ukraine	UAH 65 billion (USD 2.4 billion)	A Stabilisation Fund was established within the general fund of the state budget to cover the quarantine period. Thirty days after the end of the quarantine, the fund is expected to be closed down. As of 13 April 2020, the total value of the fund was UAH 64.7 billion (USD 2.4 billion). No specific measures for the energy sector were identified as part of the Stabilisation Fund. However, analysis of the planned budget spending before the crisis (January 2020) and after budget amendments were approved in April 2020 shows the government revised budget spending in the energy sector, too. Spending on a couple of state support programmes in the coal sector was reduced, but expenditure on the restructuring of the coal sector nearly doubled. This resulted in an increase of subsidies to the coal sector by UAH 837 million (USD 30 million).	UAH 837 million (USD 31 million)	Parliament of Ukraine (2019), Law of Ukraine on 2020 State Budget No. 294-IX of 14 November 2019 (with Amendments), https://zakon.rada.gov.ua/laws/show/294-20#Text

Source: Total public support based on information provided in OECD (2020[1]).

References

[1] OECD (2020), “COVID-19 crisis response in Eastern Partner countries”, OECD Policy Responses to Coronavirus (COVID-19), 13 October, OECD, Paris, http://www.oecd.org/coronavirus/policy-responses/covid-19-crisis-response-in-eu-eastern-partner-countries-7759afa3/#section-d1e1382.