Ukraine holds various subsoil resources. Natural gas production is currently modest and insufficient to cover domestic consumption, but the country holds the possibility to increase production significantly, if the much hoped for shale gas potential is realised. Production would mainly be for domestic markets, but with the possibility of exporting to Western Europe, as the country is well served with gas pipelines. There is also conventional oil and gas potential, offshore in the Black Sea.
Ukraine is a major coal producer, with production reaching 46bn tonnes in 2012. But the sector is heavily subsidised and major reforms are underway. Several other minerals, such as uranium, manganese, and iron ore are also produced. In 2011, mining activities accounted for approximately seven per cent of the GDP and 47 per cent of exports.
Ukraine is an important transit country of natural gas and oil from Russia to Europe. However, the development of alternative routes for gas, as well as fluctuation in European demand, makes revenues from transit volatile.
In recent years the government of Ukraine has been trying to attract more foreign extractive companies to increase the hydrocarbon production. Modernisation of the energy sector remains a challenge, and the sector is lacking of capital investment. Ukraine’s geopolitically challenging location between the EU and Russia plays a role in development.
The country has not yet produced an EITI Report.
Ukraine was accepted as an EITI Candidate country on 17 October 2013. The application [annex I, annex II] was considered by the EITI Board during the 25th EITI Board Meeting in Abidjan. The MSG is in the process of commissioning a scoping study to inform Ukraine’s first EITI Report. A training on the EITI Standard was organised in Feburary 2014, and a revised workplan has also been finalised. The nex MSG meeting is scheduled for 22 July 2014.
via Ukraine | EITI.