Analyses

Ukraine: a record year for Naftogaz

On 3 February, the Ukrainian state company Naftogaz published its data for 2016. For the first time in its independent history, Ukraine did not buy any gas directly from Russia, thus reducing its imports by about 32%, and relying entirely on supplies from Europe (11.1 bcm) and domestic extraction (20.1 bcm). In this period, the company also pumped the least amount into its underground storage (6.4 bcm) from which gas is used to support transit from Russia to the EU, and for internal use. Also for the first time, Naftogaz will end last year more than $1 billion in profit, which will allow it to become a net contributor to the state budget. Reforms within the company were also continued.

Commentary