UKRAINE AND THE GULF STATES: COOPERATION IN THE ENERGY SECTOR

Abstract

For a long time, the oil reserves of the Gulf countries have made the country one of the most important energy suppliers. To improve Ukraine's energy market, a partnership that supports both parties must create. In this article we discuss the energy sector in Ukraine, current and future challenges, and how relations with the Gulf States can help to resolve these challenges. The importance of the Persian Gulf region to Ukraine is due to the significant potential for mutually beneficial trade and economic cooperation. Cooperation with the Gulf states in the energy sector is of particular strategic importance for strengthening Ukraine's energy security by diversifying energy sources, as these countries have 54% of the world's proven oil reserves and 40% of natural gas. In the energy market of the Persian Gulf countries, Ukraine has to compete with leading European and Asian countries, which requires systematic activities and coordination of efforts between the Cabinet of Ministers of Ukraine and some public and private oil and gas companies. Ukraine's cooperation with the Gulf States can provide Ukraine with ample opportunities for mutually beneficial cooperation and the implementation of large-scale economic projects. First of all, Ukraine could take an active part in the construction of energy infrastructure in the Gulf countries. Using the geostrategic location, unique opportunities of Ukraine as a transit country for energy resources from East to Europe, the Government of Ukraine should develop a set of political, economic and scientific-technological measures aimed at the practical supply of Middle Eastern hydrocarbons to Ukraine. A special role should be played by the comprehensive elaboration of the routes of supply of Iraqi oil and Iranian gas to Ukraine. The current volatile situation in and around these countries, especially with regard to Iran's nuclear program, should not hamper work on energy transport corridor projects from the Persian Gulf to Ukraine. Subject to the active actions of relevant Ukrainian ministries and agencies, the energy and financial resources of the Persian Gulf sub region in 5—10 years can play a key role in Ukraine's efforts to diversify energy supplies and create a reliable energy security system.