Ukrainian Gas Investment Forum ’16

Ukrainian Gas Investment Forum ‘16 was organized by A7 CONFERENCES on 23 March 2016 under the patronage of the Ministry of Energy and Coal Industry of Ukraine.

Co-organizer – Dentons, Strategic Partner – Association of Gas Producers of Ukraine. The Forum has become a leading platform for dialogue between government and business, bringing together experts from Ukraine and 20 countries - to attract foreign investment in the gas sector. The Forum was held in the InterContinental hotel Kiev.

The Forum brought together over 350 senior executives from companies such as: Eni Ukraine, DTEK, Burisma, Ukristgaz, UkrGasVydobuvannya, Dniprogaz, Ukrnaftogazinvest, KUB-Gaz, Engie, AOT Energy, Électricité de France (EDF), Abbacore, Itera Ukraine, Khaznah Strategies, UniGlobe Capital, Bahia Capital, McKinsey & Company. In particular, the forum was attended by representatives of state bodies and international organizations, domestic and foreign gas companies, foreign investors and over 100 media representatives.

In his welcome speech at the opening of the Forum Deputy Prime Minister of Ukraine – Minister of Regional Development, Construction, and Communal Living of Ukraine, Hennadiy Zubko, noted: “Today we need not just investments, we need a full reboot and transition to the real market. To modify the payment system, to transit from clearing to real money, to develop a system of motivation for intelligent consumption, thermos, - all this will allow us to make a breakthrough in the industry. Ensuring energy efficiency, we get rid of gas dependence on imports, provide consumers with quality service and the right to choose, we can invest more in the industry. Transparency – is a compulsory condition of these changes”.

Minister of Energy and Coal Industry of Ukraine, Volodymyr Demchyshyn, highlighted: “The investments in the Ukrainian gas production will not only reduce the dependence on Russia, but also contribute the economic growth. In fact the domestic production capacity will stimulate tax payments to the budget, increase the number of jobs and improve the trade balance by at least the amount of investments already during the first year. However, the most important obstacle to the development of domestic production is the excessive overregulation and significant tax burden. Therefore it is important to consistently pursue liberalization and market reform, and create a competitive working conditions, – stated Mr. Demchyshyn.

Andriy Kobolev, Chairman of the Board for NJSC Naftogaz of Ukraine, admitted: “After the reform process, layover in terms of price parameters of all international creditors have taken a holding position, they are oriented to the IMF, what is clear for us. And until we get a message from the IMF, that is well and we continue to move to the reform process, - I believe that money not only belong to Naftogaz, but also across the country international donors will not provide funds”.

“The industrialist of the natural gas transportation system realizes its strategic role in the development of the natural gas market in Ukraine. Beyond the development and implementation of transparent and non-discriminatory mechanism for market participant’s access to the Natural Gas Transmission System of Ukraine, software diversification and security of supply, support and development of gas transportation infrastructure, we must create all necessary conditions for liquidity and competitive gas market in Ukraine according to European standards and best practices. Overall last year “Ukrtransgaz” made a quantum leap without exaggeration. Ahead, there are no less responsible tasks; we are ready to solve them. We expect for further mutual understanding and constructive cooperation with other market participants. We are open to dialogue.”, - pointed the Executive Director, Ukrtransgaz, Sergiy Makogon.

During the event the Association of Gas Producing Companies of Ukraine was presented – association of gas producing companies established to ensure energy independence of Ukraine by increasing domestic gas production, creating a favorable investment climate and implementing industry and implementing of best industry practices. The Association includes the following companies: UkrGasVydobuvannya, DTEK, Naftogaz, Burisma, Geo Alliance Group, Smart Energy, KUB-Gaz and JV Poltava Petroleum Company. In total, they produce 88% of Ukrainian natural gas.

“Gas independence can be achieved only by the growth of domestic gas production. This is necessary for the state, business, and every Ukrainian. There is no other strategy only than to implement an incentive system of gas production taxation and comprehensive game rules for investors. Nowadays business is willing and can contribute to energy security of Ukraine strongly supporting the actions of state bodies in this area”, - considers Chairman of the Board of the Association of Gas Producing Companies of Ukraine, Daniel Maydanik. The purpose of the Association of Gas Producing Companies of Ukraine is by using biological potential to transform Ukraine from importer to exporter of energy resources.

Oleksandr Romaniuk, First Deputy Chairman of the Board, UkrGazVydobuvannia, Executive Director of the PJSC UkrGasVydobuvannya, stated: “To achieve the goals of the programme “20/20” (a production of 20 billion cube m in 2020) UkrGasVydobuvannya plans to implement an investment plan planned for 5 years, worth around UAH 80 billion. The costs cover technical upgrading, financing of enhanced oil recovery measures, exploration of new fields, drilling of new boreholes. Our team set itself the goal to increase production capacity. Achieving energy independence – is quite a realistic plan. However in the absence of political intervention of management activities.”

Mark Rollins, Chairman of the Executive Board, Ukrnafta, while discussing on perspectives of the gas market of Ukraine paid the audience attention to the importance of increasing the competitiveness and level of the market, changes of the tax legislation, implementation of new modern technologies and improving of the professional competence of staff: “On the Ukrainian gas market I want to see as many new members who will create the competition. They will not only make the financial contributions, but also cause new knowledge and skills. Therefore the competition promotes the innovation development”.

Forum has been held under the patronage of the Ministry of Energy and Coal Industry of Ukraine. Organizer – A7 CONFERENCES, Co-organizer – Dentons, Strategic Partner – Association of Gas Producers of Ukraine.

Partner – Arab Energy Alliance UA. Exhibition partner – RC “Orange Park”. General News Partner – Interfax-Ukraine, Business TV Partner – First Business Channel, General Media Partner – The Ukrainian Week, General radio-partner – Golos Stolitsy Radio. Exclusive Media Partner: LigaBusinessInform, Exclusive Business Media Partner – newspaper “Business”, among other Media Partners: 5 Channel, Persha Shpalta, Ukrainian Energy, Ukrainian News, Companion, Delo.ua, KyivPost, Energy of Ukraine, Delovaya Stolitsa, Energy. Oil & Gas, Novoye Vremya, Industry in Focus, The Ukrainian Times, Business Views, The Ukrainian Journal of Business Law, Nefterynok, Gas for Energy, Shale Gas International, Terminal. Supported by: the UAIB, MBA International, ACC, EBA, CUCC, KMBS, UVCA, Year of Europe in Ukraine 2020  UBC, ABCnews, International Institute of Business, The Ukrainian Energy Exchange.

Live Broadcasting fully recorder may be found at: www.a7conf.com/gas

The next Ukrainian Gas Investment Forum will be held on 2 March 2017.

For further details please contact Oksana Kadochnikova,

Public Relations Manager, A7 CONFERENCES

Tel.: +38 044 227 27 77, +38 068 120 53 35,

E-mail: oksana@a7-group.com