New law guarantees government won’t forcibly take assets On Dec. 30, 2017, Ukraine President Petro Poroshenko signed a new law reducing the natural gas royalty rate on all new wells drilled after Jan. 1, 2018 from 29% to 12%. “The Agreement for the Encouragement and Protection of Investment” ties Ukraine and the OPEC Fund for International Development (OFID) together in
Ukraine’s Naftogaz seeks compensation for assets in Crimea The fallout between Russia and Ukraine continues as Ukraine’s state-owned oil and gas company Naftogaz files for US$2.6 billion in damages over its lost assets in Crimea. Naftogaz and its subsidiaries filed a claim against the Russian Federation under the Russia-Ukraine Bilateral Investment Treaty, the company said in a press release. “Upon
Ukraine and Russia agree on a new “Winter Deal” After months of negotiation mediated by the European Union, Russia and Ukraine have come to an agreement on the price for gas from Russian monopoly Gazprom (ticker: OGZPY) for the coming winter. Ukrainian Energy Minister Volodymyr Demchyshyn indicated Monday that the price Ukraine will pay for Russian gas supplies in the
Ukraine hopes to return to last winter’s gas deal Ukrainian Prime Minister Arseniy Yatsenyuk said last Friday that Ukraine and Russia should implement a similar deal to the one reached last winter for the coming months, reports the Associated Press. “We are convinced that the only mechanism to ensure a gas transit to the E.U. as well as stable supplies
Russia’s gas giant faces falling demand at home and abroad, lowest output in company history Gazprom (ticker: OGZPY), Russia’s state-owned gas giant, is seeing rapidly declining production as demand for its gas falls both at home and abroad. The company’s output in June fell by 19% compared to the same month in 2014 to a record low of 24.7 Bcm,
Russia offers $40 per Mcm discount on gas, but Ukraine says no Russian state-owned energy giant Gazprom (ticker: OGZPY) announced that it is halting gas flows to Ukraine amid a pricing dispute. Gazprom CEO Alexi Miller said Gazprom has not received advanced payment for deliveries of natural gas for July, and will not deliver gas to Ukraine at any price
Turkey’s decision could cut off Black Sea countries like Ukraine from LNG tankers Turkey announced that it will not allow the passage of tankers with liquefied natural gas (LNG) across the Bosporus Strait for fuel supplies to Ukraine, Turkish Ambassador to Kiev Yonet Can Tezel said in an interview Friday. The Bosporus Strait is the only waterway connecting the Black
Ukrainian Energy Minister hopes to nearly double the tariff on gas transit in the country Ukrainian Minister of Energy and Coal, Vladimir Demchishin, plans on using the upcoming March 20 meeting between Ukraine, Russia and the European Union to discuss increasing the transit tariff of Russian gas. Demchishin said: “The present-day rate is at $2.88 per 100km. While comparing the
Chevron (ticker: CVX) has terminated its contract with Ukraine to extract shale gas in the western part of the country. The world’s third largest oil company by market cap spent more than a year to get the government to simplify taxation for development, reports local media. “We have just terminated that PSA (production sharing agreement),” said Peter Clark, Chevron’s country
Yesterday, Ukraine confirmed that it had begun to receive gas shipments from Russia’s state owned Gazprom (ticker: OGZPY) after a six-month cutoff, reports news agency ITAR-TASS. “Imports from Russia began two days earlier than planned,” Ukraine’s gas transport company Ukrtrangaz said in a statement. Ukrainian Energy Minister Volodymyr Demchishin said Ukraine had paid Gazprom on Friday, December 5, for the
This week marked the latest step in returning energy relationships to normal between Russia and Ukraine. On Tuesday, Ukraine’s Naftogaz made its first debt payment of $1.45 billion to Russia’s state owned Gazprom (ticker: OGZD) for natural gas supplied to Ukraine during November and December 2013, Gazprom confirmed. This first payment is part of a winter gas package that was
Moscow insists on payment up front Late last week, the EU, Russia and Ukraine struck a long awaited deal to supply Russian gas to Ukraine and Europe this winter. “EU officials said both Russia and Ukraine had bargained hard for commitments from the Western bloc,” according to Reuters, “with Moscow looking for EU cash to help Ukraine pay off debts to Gazprom (ticker: GAZP)
