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Kyiv suspends exports of Ukrainian gas, coal and fuel oil

A government resolution published on Monday included coal, fuel oil and domestically produced gas in a list of commodities whose export is prohibited during the war period. It said this was connected to “the armed aggression of the Russian Federation against Ukraine and the imposition of martial law in Ukraine.”

Small quantities of natural gas are normally shipped across Ukraine’s western frontier for trade in Europe. Due to the Russian invasion, these exports have now been suspended. The move does not pertain to the ban on Russian gas transit through Ukraine, this was halted by pipeline operator GTSOU in May 2022.

Given the current conditions in Ukraine, energy supplies have remained largely stable. Grid operator Ukrenergy halted the interconnect from Ukraine to Russia soon after the invasion began. Currently, an accelerated link to continental Europe is being used instead.

Since the invasion began power losses have affected more than four million Ukrainian households. Russian forces now occupy the Zaporizhzhya nuclear plant in southern Ukraine, following a fierce shelling attack on the site, and seized control at Chernobyl for a short while in March.

Ukraine secured EUR 50 million support from the European Bank on May 11 and 12 for reconstruction and development to assist power generators amid the turmoil, as well as to protect food resources for Ukrainian civilians. The money includes existing Ukrenergo financing, and a first loss guarantee from the European Fund for Sustainable Development.

The announcement of the gas export ban coincides with Ukraine’s national oil company Naftogaz agreeing to the purchase of LNG and green hydrogen from a Quebec company in a memorandum of understanding announced June 10. The LNG would likely be delivered indirectly, potentially via Poland’s Swinoujscie import terminal, given that domestic options are no longer viable.

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