Ukrainian Oil and Gas Optimism Tempered by Bad Memories

摘要

One year into the presidency of Viktor Yanukovich, there is renewed optimism over prospects for Ukraine's oil and gas sector. But investors can remember the poor treatment meted out to them in the past, and they are not getting carried away now. Although Ukraine is best-known as a supply route for Russian gas destined for Europe, its upstream potential has never been in doubt, with estimated reserves of 2.3 billion barrels of oil equivalent. This potential has remained untapped because of excessive bureaucracy, audits and inspections, and the lack of a transparent and stable legislative framework, investors say. They hope that promising signs of reform in the past year quickly turn into concrete measures to establish a good investment climate.