Bloomberg: Ukraine’s Effort to Cut Russian-Gas Reliance Sees Explorers Exit

Ukraine’s ambition to wean itself off gas supplies from a hostile Russia has never seemed so distant. Foreign explorers that are key to Ukraine’s future energy independence are fleeing the nation as a war against pro-Moscow insurgents in eastern regions sends the economy into freefall. Even government measures aimed at shrinking consumption of Russian gas have helped drive some international companies away.

JKX Oil & Gas Plc (JKX) halted investment last week, citing a 55 percent tax imposed on gas production and a government decision to secure supplies for households by imposing restrictions on sales to industrial customers. The company joined Chevron Corp., Royal Dutch Shell Plc, Exxon Mobil Corp. (XOM) and Eni SpA, which quit Ukraine or froze projects in the past year. Others are set to follow, according to Bloomberg Industries.

“JKX’s decision to suspend its planned natural gas field development investments in Ukraine may be followed by peers also active in the country,” Philipp Chladek, an analyst at the London-based researcher, said
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