Ukrainian gas market during the war

Artem Petrenko, the Association's Executive Director, participated in the 18th Gas Forum held in Vienna and organized by the Energy Community.

During his presentation, the head of the AGPU informed European partners that, starting from the beginning of autumn, Russian terrorists have intensified their energy terror by attacking infrastructure, oil refineries, and fuel depots.

"Under these challenging conditions, Ukraine is preparing for the upcoming heating season, which is expected to be no less difficult than the previous year, and all sector representatives are working together to ensure our security," emphasized Artem Petrenko.

He also reported that the Ukrainian gas market continues to operate in wartime conditions, albeit with specific changes following the full-scale Russian invasion. At the end of April 2023, it became possible to relaunch the Ukrainian Energy Exchange when the Naftogaz Group started purchasing gas of Ukrainian origin from producers and traders. During transparent trading, Naftogaz purchased nearly 720 mln cm of gas. This is an effective mechanism to support companies, enabling them to continue investing in the sector. The TSO of Ukraine also purchases gas on the exchange to meet its needs.

Trading on the licensed exchange has become one of the indicators for determining the taxation base for gas production. Therefore, it is essential to continue liberalizing the natural gas market and increasing its liquidity, with the experience of the Energy Community and its assistance being vital.

However, due to the war, Ukraine has had to postpone the introduction of the balancing neutrality fee. This is a necessary step since implementing the fee would hurt all market participants under such challenging wartime conditions. The Association and network users initiated discussions on this issue, and the Regulator has preliminarily supported the decision. We are now awaiting its approval as soon as possible.

We express our gratitude to the Secretariat of the Energy Community for the event, the support of Ukraine, and the Ukrainian energy market!