Expert: Shale Gas Revolution Represents Strategic Milestone for Energy Independence in Ukraine

Ukraine policy expert Taras Kuzio argues shale gas exploration in Ukraine will boost energy independence and national security for both Kiev and Washington.

Writing for the Alaska Dispatch, Kuzio writes: “The shale gas revolution represents a strategic milestone in Ukraine’s new drive for energy independence. Yanukovych’s economic nationalism may yet prove to be more constructive than ethno-cultural nationalism promoted so avidly by his predecessor Yushchenko… It is even more of a paradox that it is now the Viktor Yanukovych administration, which has traditionally been viewed as ‘pro-Russian,’ that is engineering a strategic breakthrough in Ukraine’s energy independence.”

Kuzio names three strategic objectives for Ukraine’s pursuit of shale gas development. “First, to escape from the disastrous long-term 2009 gas contract signed by prime ministers Yulia Tymoshenko and Vladimr Putin. In 2012, Ukraine paid $432 for 1000 cu.m. or 40 percent more than what Italy pays and 20 percent more than Germany. In addition, Ukraine receives two times lower fees for the transit of Russian gas than Slovakia and Hungary. Second, Kiev believes it will become more geopolitically important in the eyes of Washington and Brussels. Third, energy independence and breaking free of Russia’s gas stranglehold could improve the chances of Ukraine’s integration into Europe.” writes Kuzio.

In his commentary, Hannaford argues that the U.S. and Canada have been encouraged to sign agreements with Kiev and Ukrainian partners for shale gas development and the potential for helping Ukraine become energy independent: “Within a decade Ukraine could return to a time prior to the early 1970s when its demand for energy was satisfied by domestic production. The rapid expansion of shale gas production, coupled with an expansion of domestic gas with the assistance of Canadian-US companies such as Cub Energy, and energy conservation will contribute towards removing Russia’s energy noose around Ukraine’s neck. Prime Minister Nikolai Azarov has complained that Russia is ‘strangling’ Ukraine with high gas prices.”

Taras Kuzio heads the Ukraine Policy Forum at the Center for Transatlantic Relations in the School of Advanced International Relations, Johns Hopkins University.