In addition to minerals, the recent agreement signed between kyiv and Washington plans to finance oil and gas extraction projects, resources of which Ukraine will retain property and control.
Wheat fields as far as the eye can see … but not only. As part of their recent agreement, kyiv and Washington will create an investment fund for the reconstruction of Ukraine which will receive 50% of the royalties drawn from projects related to the exploitation of natural resources in the country which will retain ownership and control, as well as their infrastructure.
And these resources are not limited to rare earths or minerals, including Ukraine, which concentrates some 5% of global mining resources, is the 40th producer across the globe, all categories combined (coal included) according to the World Mining Data publication in 2024.
Among the 57 types of natural resources concerned, there are also gas and oil that Ukraine produces more and more itself, in particular since the deterioration of its relations with the Russian neighbor. According to media, Russia, which has invaded its Ukrainian neighbor three years ago, has also targeted petroleum production sites and especially concentrated gas mainly in the regions of Poltava (center) and Kharkiv (northeast). The Russian Defense Ministry believes that these “energy and gas infrastructure” feeds the “military-industrial complex” Ukrainian.
Gas production capacities amputated by almost 50%
These repeated attacks, which Ukraine also leads to Russian energy infrastructure, particularly harm kyiv gas production capacities. The Russian strikes on gas infrastructure during the winter thus reduced the national gas production in Ukraine by half, announced at the start of the week the Ukrainian Prime Minister, who in particular hopes to compensate for these losses by imports with a view to next winter.
-Russia pounds energy – especially electric – Ukrainian installations since the start of its large -scale offensive against Ukraine in 2022 but it was last winter, according to media, that it began to specifically target oil production sites and especially gas. “This winter, the enemy has made a series of massive attacks against Ukrainian gas production infrastructure” and “inflicted losses that rise to almost 50% of the entire production,” said Prime Minister Denys Chmygal, according to a video broadcast by his press service.
“We are actively working in order to compensate for these losses, in particular by importance,” he added during a council of ministers in kyiv.
The government seeks to “diversify the sources of energy supply to have the sufficient volume of gas next winter,” he continued. He also promised to simplify procedures for private companies working in the sector in order to “accelerate” national production.
Almost 20 billion cubic meters of gas produced last year
At the end of March, the Ukrainian media estimated that the country had already lost almost 40% of its gas production capacities and would now be forced to import considerable volumes next winter. The production of national gas dropped by 6% in 2022, with the start of the Russian invasion, before recovering slightly the following year. In 2024, Ukraine had produced more than 19 billion cubic meters, an increase of 2% compared to 2023, according to experts.
This country has crossed winter by using only its own gas, for the first time in its history, according to the national company NAFTOGAZ. On March 28, the energy operator accused Russia of hitting its gas infrastructure, in violation of a fragile agreement announced by Washington and supposed to prohibit strikes on energy sites, qualifying this strike as a Russian “attempt” as “Soft Energy Stability” of Ukraine. Formerly strongly dependent on Russian gas, the country began ten years ago to turn successfully to other suppliers and develop its own production.
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