Ukraine’s gas shortage can only be resolved through market liberalization.

Ukraine must liberalize its gas market as soon as possible to attract Ukrainian and European traders as well as industrial consumers for imports. Otherwise, a lack of resources and funding may disrupt preparations for the upcoming heating season, stated Volodymyr Omelchenko, Director of Energy Programs at the Razumkov Center.

“To fill the underground storage facilities in a timely fashion, it is essential to import gas immediately at the rate of 25 million cubic meters per day throughout the entire injection season. This will require approximately €2B. Naftogaz of Ukraine will not be able to secure such an amount on its own,” he noted.

The expert added that the current market model, under which Naftogaz fulfills special obligations and sells gas at low prices to households and commercial users, is no longer viable. Currently, Naftogaz must import gas for consumers and sell it at a loss. Omelchenko believes that the only solution is to engage other parties in imports. To achieve this, the gas market needs to be liberalized.