The Cabinet returned to the issue of gas exports: what volumes may be allowed

The Cabinet of Ministers has again returned to the question of partially opening exports of Ukrainian-produced gas. The reasons are the sharp widening gap between Ukrainian and European prices, and the need for gas-producing companies to obtain additional foreign currency revenue.

Why gas export might be resumed As the publication notes, at the beginning of September the government stopped considering this issue and planned to return to it in the spring of 2027. However, the market situation has changed: in mid-September gas in Ukraine is trading about 2,5 times cheaper than in Europe. At the same time domestic consumption is shrinking, and storage reserves have already exceeded the official winter target. "Partial restart of exports of domestically produced gas could help gas-producing companies obtain additional funds necessary, among other things, to restore facilities damaged as a result of Russian strikes, as well as to protect gas-producing assets," ExPro reports, citing market participants. What volumes are planned to be allowed? According to sources cited by the publication, unlimited export reopening is not on the table again. Previously the government considered allowing sales abroad of up to 15% of domestically produced gas. Also read: Controlled export could give gas producers money for reconstruction after attacks, - expert ExPro assesses this at roughly 250-260 million cubic meters per month. Gas was planned to be sold through special auctions on the "Ukrainian Energy Exchange". "In times of energy security threats, gas exports could be shut down quickly," notes ExPro. Currently there is no official Cabinet decision, so exports of domestically produced Ukrainian gas remain prohibited.

As a reminder, Ukraine accumulated the necessary gas by the end of August to get through the winter 14,6 billion cubic meters early. Injection continued also in September. According to analysts, reserves in Ukrainian underground gas storages have already reached 15,25 billion cubic meters. It is worth noting that the government introduced zero quotas on exports of Ukrainian-origin natural gas at the start of Russia’s full-scale invasion in 2022 year.