Ukraine loses half of its natural gas deposits due to Russia’s occupation of Crimea

Due to the temporary occupation of Crimea by the Russian Federation, Ukraine has lost the opportunity to exploit the Scythian section of the Black Sea shelf, where gas production was to begin in 2017.

Permanent Representative of the President of Ukraine to the Autonomous Republic of Crimea Anton Korynevych said this at the All-Ukrainian Forum “Ukraine 30: Public Utility Bill” on February 15.

“Shortly before the occupation, agreements were signed in the United States on the distribution of products, on the exploitation of the Scythian section of the Black Sea shelf, which is located near the Crimean Peninsula, outside the city of Sevastopol. This project could have started in 2017 and would be very successful and very correct from the perspective that Ukraine would increase its natural gas production,” Korynevych said.

The representative noted that about half of all natural gas in Ukraine is on the continental shelf of the Black Sea and the Sea of ​​Azov. Due to the occupation, Ukraine cannot exploit these resources, which has a negative impact on the energy security of both our country and Europe as a whole, he stressed.

The official reminded that after the occupation, Russia seized Chornomornaftogaz from Ukraine, a state-owned enterprise which includes a coastal production base for offshore works, a technological fleet, 10 offshore gas production platforms, 4 self-elevating drilling rigs, gas transmission system of the Autonomous Republic of Crimea and the city of Sevastopol, Hlibovka underground gas storage, and much more.

In addition to oil and gas equipment, Russia seized solar and wind power plants, which were among the most powerful in Europe and the world and provided up to 30% of Crimea’s electricity generation, he added.

Currently, the official reminded, Ukraine is filing lawsuits at various international courts.

“In particular, we filed a lawsuit against Russia under the investment protection agreement at the Permanent Court of Arbitration in The Hague, a lawsuit of Naftogaz against Gazprom at the Arbitration Institute of the Stockholm Chamber of Commerce, and others,” Korynevych said.

He informed that certain judgments have already been delivered, and Gazprom must pay Naftogaz $2.5 billion.

(C)QHA 2021

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