Naftogaz, Ukraine’s state energy company, is formulating an agreement with US-based energy companies to aid the expansion of domestic gas production in Ukraine.
Naftogaz CEO Oleksiy Chernyshov spoke to Joe Manchin, who chairs the US Senate’s Energy Committee, about establishing a partnership between Naftogaz and US energy companies.
“I am grateful to Joe for the initiative to promote the Naftogaz Group as an important player in the European energy market and the proposal to establish a closer dialogue with the American energy business,” Chernyshov stated.
In April, it was reported that Naftogaz had discussed potential energy projects in Ukraine with Halliburton, ExxonMobil and Chevron. Naftogaz hopes it can utilise these companies to make up for the shortfall in pipeline gas imports to Europe following Russia’s invasion of Ukraine and ensuing trade sanctions.
Since the invasion, Russia has reduced gas supplies to Europe and moved business to Asia. In September 2022, state-owned Gazprom cut gas to Europe coming from the Nordstream 1 pipeline indefinitely. Shell’s CEO stated that Europe would endure a gas shortage that will last “several winters”.
Chernyshov added that the pair had been in discussion over plans to collect compensation from Russia for assets it took control of during the invasion of Crimea. In June, Naftogaz announced it was entering into arbitration against Russia in the US over the non-payment of $5bn that it was awarded by the Hague.
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“Since Russia has not voluntarily paid Naftogaz the funds required by the arbitration award… we are working on it in the US and other target jurisdictions,” Chernyshov said in June.
During his visit to the US this week, Chernyshov had also met with representatives from the law firm Covington & Burlington, which will utilise investigative company K2 Integrity in order to see the $5bn award paid in that case.