WSJ: The Big Mistake Ukraine Is Making on Energy

Ukraine is facing a huge energy-security challenge. It is dependent on Russia supplying most of its natural gas as well as uranium fuel for its nuclear reactors.

Under these circumstances, a responsible government would develop a policy aimed at encouraging domestic hydrocarbon exploration and production. Instead, the government of Ukraine is doing the opposite: It is promulgating ill-conceived, anti-market policies that are set to kill domestic production.

After Russia’s seizure of the Crimea and the war in the country’s east, the Western majors, including Shell, BP, Chevron and VITOL, ceased exploration and production or have left. The more risk-tolerant among the smaller companies have remained, including JKX, Arawak, and Cub Energy.

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