Why should Ukraine open natural gas exports?
19 March 2024 17:05
ЕКСКЛЮЗИВ
Ukraine may start exporting natural gas again. At least this is the initiative of the National Commission for State Regulation of Energy and Utilities. Oleksiy Kucherenko, First Deputy Chairman of the Verkhovna Rada Committee on Energy and Utilities, former Minister of Housing and Communal Services, told Komersant Ukrainsky 
said that the ban on gas exports, which was introduced in March 2022, should be lifted as soon as possible.
“The artificial restriction on gas exports has led to a decrease in gas production, as the market is limited, companies have stopped working, the population is smaller, the market has fallen, and companies are not interested in producing gas,” he said,
– he said.
Oleksiy Kucherenko noted that domestic production currently fully covers consumption, but this is only due to a decrease in the country’s population. In fact, companies have started producing much less natural gas because they are not interested in it from a financial point of view.
“We need to encourage our private companies to increase gas production, because they are the ones who have seen a decline. And to do this, we need to open up export opportunities, either in full or within some quotas. Companies should enter into long-term contracts to make money,”
– said the former minister.
In his opinion, the government should now focus on two areas: launching a mechanism for selling gas within Ukraine through an exchange and opening up exports:
“Launching a mechanism for selling gas within Ukraine through an exchange is necessary for us to understand what the market price of gas in the country is, because we don’t actually have a gas market now, and to open exports to stimulate gas production.”
MPs are also in favour of lifting the ban on gas exports. According to Andriy Zhupanin, chairman of the subcommittee on gas, gas transport and gas supply policy of the Verkhovna Rada Energy Committee, MPs plan to address the National Security and Defence Council and the Cabinet of Ministers on this issue, because “the Ukrainian economy desperately needs money, and Europe needs Ukrainian gas”.
Author: Alyona Kaplina
