Ukraine Plans Further Reduce Russian Gas Imports

Ukraine will cut Russian gas imports in 2014 by doubling imports from Europe, Ukraine’s Energy Minister Eduard Stavytsky told Reuters, explaining that Kiev started replacing traditional gas imports from Russia with fuel purchased on the European spot markets. 

Ukraine's government is keen to produce locally to ease dependence on Russia. Ukraine also continues to make ambitious plans to decrease national energy consumption, switch its power stations from natural gas to coal, build an LNG terminal, and open reverse flows of gas from Europe.

According to the Iranian ambassador to Ukraine and Moldova, the Islamic Republic could soon supply the two European countries with its abundant natural gas. Iran is the first country in the world by natural gas proven reserves.

Ukraine is also trying to develop the Skifska field on the Black Sea shelf in cooperation with ExxonMobil and Dutch Royal Shell, while betting also on the Olesska field to develop with Chevron.

“I think it will be signed within two months,” said Stavytsky to Reuters.

While Ukraine’s transit of natural gas from Russia to Europe increased in July, Stavytsky said that state energy firm Naftogaz has reduced Russian gas imports by 30% this year.