OREANDA-NEWS. April 07, 2014. Ukraine's energy security is among the priorities of the Government. This was discussed at the briefing of the Minister of Energy and Coal Industry Yuriy Prodan in the building of the Cabinet of Ministers of Ukraine.

The Minister stressed that the basis of energy security is the ensuring of the country with energy resources.

Yuriy Prodan in particularly informed on the situation in the coal industry: "We’ve eliminated agents primarily in the coal sector. And now, for example, coking coal goes directly to thermal power plants, enterprises of metallurgical industry from state-owned enterprises. There are no agents there."

The Minister said that special attention is paid to the control of preventing purchase of mining equipment at inflated prices.

Yuriy Prodan also informed on results of the negotiations concerning increasing of reverse gas supplies to Ukraine from European countries: "We have confirmation from gas traders, operators of gas transmission systems of Poland and Hungary that we can carry out reverse on the average daily value of somewhere around 20 million cubic meters of gas. And as of today there are gas traders who are willing to engage in this work and to supply gas at relevant market European prices to Ukraine in such volumes."

The Minister said on the resumption of negotiations and the revitalization of cooperation with the Polish side on Brody - Adam's bail project."

One of the factors for increasing of energy security, according to the Minister, is increasing of gas production in Ukraine, particularly from unconventional sources. Yuriy Prodan recalled that those resources that may be involved in shale gas production, currently estimated at 30 trillion cubic meters of gas. "I think that concrete results in terms of gas production of Shell Company will be in the next two years," the Minister said.

He also stressed on the importance of implementation in Ukraine of the Initiative on Transparency in Extractive Industries that will attract investment.

Yuriy Prodan said that a significant negative factor, which affects the energy security of Ukraine, is a capture by the aggressor of Chornomornaftogas Company. "The Only proven reserves of natural gas in the region are 100 billion cubic meters of gas. Projected reserves are about 3 trillion cubic meters of gas. This is a serious loss to our energy security," Yuriy Prodan said.

Yuriy Prodan also told on activation the work to strengthen energy security in the nuclear industry, including the nuclear fuel supply and construction of storage for nuclear fuel.

Concerning the issue of payments for Russian gas, the Minister stressed that Ukraine is ready to fulfill its obligations and to act in previous agreements.

In particular, he noted that it was concluded agreement with Russia in 2013 under which the Russian Federation agrees to provide a loan of USD 15 billion, of which USD 2 billion had to go to the payment of debt for gas in February 2014, but the Russian side does not adhere to agreements and loan was not provided in February. We have no other agreements with Russia. The Minister added that Ukraine is ready to return to the previous agreements and decide on economic rather than political arena.