Domestic gas market reform is moving ahead in Ukraine. The cycle of disputes with Russia on transit has been broken by the deal struck at the new year; the transit business continues to decline, while the storage business is soaring and interconnections with European markets are developing. Market pricing has been adopted for the residential sector, and the largely unreformed heat sector should follow in May 2021. Over the longer term, Ukraine’s integration not only with European gas markets but with European energy policy will determine whether gas demand will fall with coal or find new openings, firstly in the power sector. My paper published by the Oxford Institute for Energy Studies, is here.
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