Ukraine’s largest Energy Forum welcomes Burisma as a Partner

March 2, 2016

Burisma, the largest independent oil & gas producer in Ukraine, partnered with the Ukrainian Energy Forum. Organized by the Adam Smith Conferences, for 7 years in a row the Forum is continuing to be a leading national platform that brings together representatives of leading energy companies and foreign investors as well as representatives of government, parliamentarians, regulators and other stakeholders to discuss key energy issues on Ukrainian and European agenda. This year the Forum was attended by heads of 300 companies from 20 countries, as well as the world’s leading experts from the academia, media and civil society.

In 2016, the Forum ran under the slogan “The increase in national production, diversification and security of energy supplies through reforms, transparency and modernization.”

“For a company that stands by international principles of corporate governance, and is a member of the European strategy on energy security, it is important to have a dialogue between leading European and Ukrainian politicians and businesspeople. It helps identify key issues in the energy sector and develop joint solutions to increasing the investment attractiveness of the Ukrainian gas production, as one of key elements of the European energy market,”- noted CFO at Burisma Holdings Alexander Gorbunenko.

In addition, Burisma Holdings held the panel on “Natural gas production in Ukraine: Reloaded?” Company’s CFO Alexander Gorbunenko moderated the discussion between the Deputy Minister of Finance of Ukraine Elena Makeyeva, MP, Secretary of the Special Energy Committee of the Verkhovna Rada of Ukraine Victoria Voytsitskay, Advisor to the Energy and Coal Industry Minister of Ukraine Alexander Vovk, CEO of the Geo Alliance Group Lyudmila Kuchmenko and Commercial director at JKX Oil & Gas Philip Vorobyov.

The participants discussed new market realities, following the adoption of the Law on natural gas market, a return to an adequate level of tax burden on gas industry, the adoption of new rules set out in the new regulatory instruments, including Codes on Gas transmission and Distribution systems, underground gas storage facilities, supply rules. In view of market restructuring and negative impact of a number of factors over the past 2 years, the withdrawal from the market of large foreign players such as Chevron and Shell, the suspension of many investment programs, the speakers defined key steps to improve the situation  in the industry. First and foremost, it is vital to define and implement a clear and adequate long-term taxation system by 2018.

Transparent, fair and equal market conditions for all participants are key to renewing investor confidence in Ukraine through predictable and consistent public policies.  Elena Makeyeva also drew attention to a need for finding joint solutions between government and business through consultations and compromises in the future.

“We are pleased that the authorities are not only expressing readiness, but are actually listening to what the industry has to say. We are hoping for a more effective and fruitful cooperation in the future than in 2015 – not only by making good on past errors, but also by implementing strategic decisions to facilitate the energy independence of our country in the next 10 years. This year should be the year of the return to previous double-digit growth dynamics in the energy sector and the return of investor confidence to the Ukrainian gas production”, – said Alexander Gorbunenko.

In particular, Burisma Holdings supports the Ministry of Energy and Coal Industry of Ukraine’s initiatives on gas market liberalization. As stated during the Forum by the Minister Demchyshyn the state, together with business associations, has already developed a de-regulation package for the oil and gas sector, which will help significantly reduce the decision making process, as well as optimize existing bureaucratic procedures. According to Minister Demchyshyn, in 2020 Ukraine is expected to produce 27 billion cubic meters of natural gas on its territory, of which at least 7 billion belong to private producers and should be a common goal for all existing and potential players.

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