UKRAINE’S GAS SECTOR Simon Pirani June 2007
[email protected] The contents of this paper are the author’s sole responsibility. They do not necessarily represent the views of the Oxford Institute for Energy Studies or any of its Members. Copyright © 2007 Oxford Institute for Energy Studies (Registered Charity, No. 286084) This publication may be reproduced in part for educational or non-profit purposes without special permission from the copyright holder, provided acknowledgement of the source is made. No use of this publication may be made for resale or for any other commercial purpose whatsoever without prior permission in writing from the Oxford Institute for Energy Studies. ISBN 1-901795-63-2 978-1-901795-63-9 ii CONTENTS Foreword vii Acknowledgements viii 1. Introduction......................................................................................................................................1 2. The wider context.............................................................................................................................3 2.1 Independence and slump (1991–1994) 4 2.2 Early attempts at reform (1994–1999) 6 2.3 The economic recovery under Kuchma (1999–2004) 7 2.4 The Orange revolution and its results (2004–2006) 8 2.5 Ukraine’s energy balance and energy strategy 11 2.6 Energy saving issues 15 3. Gas in Ukraine ...............................................................................................................................17 3.1 Gas in Soviet Ukraine 17 3.2 Cheap gas, expensive debts (1991–1994)