Energy stability and independence: What will it take?

Naftogaz CEO
Oleksiy Chernyshov
Ukraine’s energy sector is going through extremely difficult times. Ukraine’s energy projects remain vulnerable to hostilities and russia’s incessant missile terror. Therefore, we urgently need to restore our partners’ trust in our energy sector.

At the beginning of russia’s full-scale invasion, few believed that Ukraine was capable of resisting the aggressor and, accordingly, it was difficult to count on widespread support. However, along with military victories and political resilience, Ukraine restored the trust of the whole world, and with it came extensive support.

Similarly, in the energy sector: no cooperation is possible until trust is restored. This is where we are facing a huge scope of ​​work, because today we need new technologies, experience, and investments more than ever. Current support from global oil and gas companies will lead to large-scale cooperation on reconstruction and new projects in the post-war period.

Equally important is the factor of trust and mutual understanding with leading banks and international financial institutions, on which the financing of industry depends. Whether it is the purchase of natural gas for the winter heating season or investments in production, National Joint Stock Company “Naftogaz of Ukraine” equally requires reliable partners able to finance business development in a country at war.

We should also pay our close attention to another group of international partners – lenders and bondholders of Naftogaz. For the successful operation of the company in the future, we need versatile financial instruments to ensure our regular production activities.

Tens of thousands of employees of National Joint Stock Company “Naftogaz of Ukraine”, together with its subsidiaries and companies, are ensuring natural gas and oil production, storage and supply to millions of consumers daily. Therefore, even now Naftogaz must remain a reliable, predictable and solvent company. Considering the above, it may count on mutual understanding with the borrowers.

The winter heating season, extremely difficult and challenging, is coming. Ukraine’s energy infrastructure facilities have been targeted by russian missile attacks while civilian and critical infrastructure is being massively destroyed. These challenges should be answered with the maximum mobilisation of our energy resources, balanced energy system, as well as energy efficiency.

A stable supply and provision DHCs, industrial consumers and households with fuel is a high priority for the current heating season. Naftogaz, as the largest supplier of natural gas, should become a guarantee that all consumers in all regions will have access to the necessary resource. This requires a daily dialogue with representatives of communities and local authorities to jointly solve the challenges. Any issues with communities should be resolved promptly, without delay, avoiding red-tape obstacles, as much as possible.

Gas in the underground storage facilities, high rates of domestic production and international cooperation – all this forms the energy stability of the Ukrainian gas market.

The issue of gas is not only about big politics. Gas concerns each and every one of us. Natural gas is about the stability of the economy, the development of industry. It is about warmth in homes and fire in the kitchen burner. Naftogaz Group will do everything in its power to ensure that Ukraine is with gas. Even extremely difficult war conditions are not an obstacle for the company to fulfil its duty.

However, it should be added that Naftogaz is not only about natural gas, the company is a notable player in the oil and petroleum product market. We will try our best to develop the production of oil and gas condensate, processing of raw materials and production of petroleum products, as well as their sale, as efficiently as possible.

In addition, achieving energy stability and independence, in particular, meeting own needs through domestic natural production, is on the agenda.

Energy independence is a two-way movement; on the one hand, Ukraine can increase production, on the other hand, introducing new technologies and cultivating the ideology of energy saving are required.

Our energy resources are like fuel for the economy, without which it will not be able to function. Therefore, it should be used rationally and economically.

There is no doubt: we will stand, we will win, and we will rebuild!