United States supports Ukraine’s energy independence

September 22, 2014

If general interest in Ukraine among American investors has been previously declined due to unfavorable investment climate, failure of the majority of companies to adapt to the Ukrainian economic realities and to find ways to lobby effectively their interests in the context of a general slump from Washington to Kiev, then the situation has changed fundamentally today. The biggest lobbyists from US energy companies can be met in Kiev more often. Only a week Ukraine has been visited by the representative of the US Department of Commerce Matthew Murray, who iss associated with the coal lobby (coal or substitute fuel supplies to the country) and Devon Archer, a representative of the gas lobby. The latter has been seen on the sidelines of YES Meeting, which has annually organized by businessman and philanthropist Victor Pinchuk for the eleventh time.

Devon Archer is an iconic figure in American politics today. According to US media, he is the part of the Family Foundation Directorship Heinz Family Office with Christopher Heinz, John Kerry’s stepson (the current US Secretary of State). He has served as Senior Adviser to John Kerry And in 2004 during the presidential campaign. Today he is the co-founder and managing director of Rosemont Seneca Partners, where his partner is Hunter Biden, the son of the current US Vice-President Joseph Biden.

The appearance of Devon Archer in Ukraine is symbolic against statements of the US authorities about the need of more active work of the state to diversify energy supplies in Ukraine, including through the development of its own production. It is noteworthy that Devon Archer has joined the Board of Directors of the largest private gas producers in Ukraine Burisma Holdings of Nikolai Zlochevsky in April 2014. Among him board of directors of the company also includes Hunter Biden, the son of Joseph Biden, and President of Poland in 1995-2005 Aleksander Kwasniewski.

It is interesting that the topic of energy sector has been actively discussed by the Ukrainian Head of the State Petro Poroshenko at the meeting with US President Barack Obama on September 18. As a result, a team of American energy efficiency experts will come to Kiev in the nearest future to promote the energy security strengthening of Ukraine. ” team of experts from the US will come to Kyiv Soon, which will help us in energy saving sector, study the problems in order to take important steps in energy security sector,” – said Poroshenko after a meeting with US President Barack Obama in Washington.

This is about direct support of domestic reforms from the US, modernization of infrastructure and the development of gas production sector. In particular, US companies will be able to invest directly in Ukraine. Also, Ukrainian companies will be able to attract Western specialists to import sophisticated drilling equipment from the United States. All of these have been already happening, but the US government can stimulate this activity through a State Department-sponsored program. Also, the US government can accelerate these investments by funding the US Export-Import Bank. At the same time, US investors have offered to support the gas sector by lowering taxes for the use of mineral resources and develop a new motivation system for investment in the energy sector.