Gas sector could generate up to $ 5 billion of investment to 2022 – Kovaliv

To attract investment in the Ukrainian gas industry, it is necessary to reform the industry, deregulation and give fiscal incentives for the development of new fields. This was on the sidelines of the Ukrainian gas investment forum “Today,” said the head of the office of the National investment Council Yulia Kovaliv.

“Go on gas production to cover the domestic needs and give an opportunity to sell gas that is not fiction. In fact, that the concept of the gas industry, which was adopted by the government puts the task of production to the end of 2020 and 27 billion cubic meters. This is almost equivalent to the domestic consumption of gas. There are three simple things and a recipe that you want to do,” says Julia Kovaliv.

First and foremost, it is necessary to give fiscal incentives for the development of new fields.

“The second is, indeed, deregulation. Just a month ago I spoke with the Texas Railroad Commission – a Commission which is engaged in subsoil use. They permit the extraction of oil is given for two weeks. We are so complicated and bureaucratic – dare I say – sometimes corrupt procedure that almost new licenses over the past 2 years issued units. And without development of new deposits, no new licenses production increase is impossible”, – said the head of the office of the National investment Council

The third point, according to her, this gereformeerden the gas market. “Today we have the liquid segment, where gas companies can sell it to industrial consumers. It is not that big. And the population, and CTV still remain in the regulated segment. Although it was planned that from 1 April 2017 they will move to a competitive market. Those are the three key things on which to focus and this sector can bring up to $ 5 billion of investment over the next five years”, – said Koval.

In General, the Ukrainian gas reserves at more than 900 billion cubic meters. “And, moreover, if the global average mining stocks is around 6% (the annual selection of stocks), in Ukraine – only 2%. I mean, we are talking about what we, as a country, inefficient use data us natural resources,” concluded Koval.

We will remind, Ukraine’s GDP last year grew by 2.3% after two years of decline. According to experts, the main support for the economy of Ukraine had the investment that uvelichilis 20%, and their share in nominal GDP increased to 15.2% compared to the historical low of 13.5% in 2015

Revitalization of investment, according to Dragon Capital, has been observed in many sectors of the economy, but the largest contribution to overall growth was made by agriculture, industry, real estate and trade.