We Offer Investor Friendly Environment - Ukrainian President

KYIV, Ukraine, May 23, 2012 /PRNewswire/ --

The President of Ukraine Viktor Yanukovych regards interest of such major international companies as Chevron and Exxon Mobil as an indication for effective cooperation between investors and the state. Speaking to journalists at the 2012 NATO Summit in Chicago, Ukrainian leader reckoned that Ukraine provided favorable conditions for capital investments.

Ukraine exempted companies which produce shale gas in the country from import tax on equipment and export duty, stated earlier Roman Storozhev, president of the Gas Traders of Ukraine Association. Moreover, in case several deposits are discovered in one field they are taxed as one tax object, according to Storozhev.

During the Chicago summit President Yanukovych also expressed hope that cooperation with Chevron would contribute to the development of gas fields in Ukraine. As a result, this would help Ukraine diversify energy sources. The statement followed the meeting of the Ukrainian leader with Vice President of the American company Ian MacDonald on May 21^st.

While in Chicago, Ukrainian leader also met with Exxon Mobil executive Stephen Greenlee. During the meeting the parties signed memorandum regulating cooperation between the Ukrainian Ministry of Ecology and Natural Resources and Exxon Mobil Exploration.

Ukrainian oil and gas sector attracts a string of international companies. According to NJSC Naftogaz, in 2011 Ukraine started cooperation with ExxonMobil, Chevron, Halliburton, Total, RWE, Eni, and StatOil regarding development of unconventional hydrocarbons.

Recently, Chevron and Royal Dutch Shell plc obtained the right to develop Ukrainian shale gas fields. The estimated investment in the fields will amount to at least USD 370 million. The number would grow significantly should the gas reserves prove to be commercially viable.

In May of 2012 British company Cadogan Petroleum declared its plans to invest up to one billion dollars in the development of Ukrainian hydrocarbons. Besides the estimated reserves, company executive listed the developed infrastructure on border with Western Europe as a contributing factor for their decision.

Additionally, in September of 2011 Ukraine signed a deal on development of unconventional hydrocarbons with Exxon Mobil Corporation and an agreement that regulates the involvement of the Royal Dutch Shell plc in shale gas extraction and diversification of energy resources mining in Ukraine. Shell plans to invest up to USD 800 million into the project.

SOURCE Worldwide News Ukraine

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