Ukraine Gas Market Brief
We are doing this for a number of reasons:
First, there are plenty of untold stories about this process – stories that are never heard outside the small expert community. Reforms have been pushed out of the news agenda, as other, and more negative, developments, have dominated Ukraine business headlines for the past two years.
Second, the progress and the changed market dynamics in Ukraine’s gas trade are probably the best examples of how the country has turned towards the west. From being more or less 100% dependent on Russian gas imports to satisfy industrial and private consumption, its total imports are now from European partners. Moreover, international financial institutions have been deeply involved in shaping up the market environment, and there are many parallel conversations going on, which will ultimately have an important impact on the opportunities to do business in the Ukrainian gas sector. We believe it is important to have a central place from which to follow this process.
Finally, then there is the question of privatisation and governance. Naftogaz – the local gas behemoth – is facing increasing pressure to reform its corporate governance structure, and privatisation is high on the agenda. With this entire process going on we think that foreign observers, investors, and business partners, would do well to monitor developments closely. We are happy to schedule calls to clients, to discuss specific matters.