The long term Louisiana deal probably would have violated the competitive gas market that started Aug. 1 in Ukraine. “Due to the recent gas sector shake-up, Ukrainian gas consumers can now freely switch gas suppliers — they can benefit from pricing that is market-based and not set arbitrarily by the government,” Oleksandr Kharchenko, Managing Director at the Energy Industry Research Center, wrote in an Atlantic Council essay: “Ukraine quietly launches a gas market revolution.” Estimating an annual $2 billion savings to Ukraine’s budget, he writes: “All Ukrainian households have gained access to a genuine gas market, while intermediaries will no longer be able to accumulate illicit gains by simply taking gas from Naftogaz without full, or in some cases without any, payment.”
The long term Louisiana deal probably would have violated the competitive gas market that started Aug. 1 in Ukraine.
