President Zelenskiy Takes Bold Step to Extend Gas Export Ban, Ensuring Energy Security for Ukraine

President Volodymyr Zelenskiy of Ukraine has proposed extending the ban on the export of Ukrainian natural gas for the entirety of 2024, according to a presidential decree issued on Tuesday. This export ban was initially implemented following Russia's full-scale invasion of Ukraine in February 2022 and was subsequently extended to cover 2023. The decree calls on the Cabinet of Ministers of Ukraine to establish a zero export quota for natural gas originating from Ukraine in 2024.

Additionally, it urges the government to enhance the capacity of Ukraine's gas transmission system in order to facilitate the import of natural gas and its storage in underground gas facilities. To ensure energy stability, Prime Minister Denys Shmyhal has previously stated that Ukraine is prepared to offer foreign energy traders access to up to half of its underground gas storage capacity, which currently stands at 30 billion cubic meters (bcm).

Naftogaz, Ukraine's largest oil and gas company, has confirmed that foreign customers could utilize over 10 bcm of storage, predominantly in the western regions of the country, far from the war-torn areas. Prior to the conflict, Ukraine produced approximately 20 bcm of gas, with a significant portion coming from private companies that engaged in fuel exports. However, these exports were suspended in the aftermath of the war to prioritize domestic requirements.

Despite the challenges, Oleksiy Chernyshov, the CEO of Naftogaz, expressed optimism earlier this year regarding gas production for 2023, aiming to reach 19.1 bcm and hoping to meet the country's winter needs without the need for imports. It is projected that Ukraine's gas consumption will decrease below 20 bcm in the current year, down from approximately 27 bcm in 2021. Meanwhile, the country currently possesses gas reserves surpassing 16 bcm. This proposed extension of the export ban and efforts to increase gas production and storage capacity aim to safeguard Ukraine's energy security amid the ongoing conflict with Russia and ensure the reliable availability of natural gas for domestic consumption.