The charming center of Kyiv was a scene of mass protests that soon changed into a war zone.
Trade with Ukraine? Maybe it's time to borrow Rahm Emmanuel's line. "You never want a serious crisis to go to waste." There are a dozen of ways the current crisis in the Ukraine could play out. It would take too long for this editor to present his views, which may be meaningless in the end anyway. For your knowledge, Ukraine's largest exported goods are metal, iron ore and steel. These resources are found in the East, primarily in the Donetsk region. You have probably read about Russia focusing on this region. As I write this, Russians are slipping into this already pro Russia area from across the border to support a Donetsk takeover..There is no doubt that a number of Western businesses that established themselves in any part of Ukraine are biting their nails, reviewing their contracts, and living on the edge every hour. Among the biggest we have not heard in the news are. Exxon and Royal Dutch Shell who are about to start a nearly trillion dollar drilling project 50 miles off the Crimea coast.
The country of Ukraine has newly discovered oil and gas areas highlighted in orange. Fifty miles off the Crimean Coast Exxon and Shell were about to spend nearly a trillion dollars in two drilling projects.
A well worth article in Oilprice.com provides insight into this matter going from a big hope to a probable major loss for Ukraine.
An interview was conducted by Oilprice.com with Yuri Boyko, the previous Ukraine Prime Minister: Oilprice.com:
The knee-jerk reaction would be that Russian aggression in the Crimea is a red flag for investors; but is it possible that we're looking at a potential new opportunity here instead--perhaps a catalyst for a new era of Ukrainian energy independence? Yuri Boyko: Absolutely. What Moscow wants out of all of this is to halt Ukraine's European integration process and to delay its signing of the AA/DCFTA [Deep and Comprehensive Free Trade Agreement]. It would also like more control over key strategic assets, particularly the gas transit system. But Moscow's actions in Crimea after the ouster of Yanukovych in February could very easily spur Ukraine's move towards Europe and away from Russia. Now more than ever, the West”and Ukrainians themselves”see the need for energy independence and the connection this has to the Western world. Oilprice.com:
The shale gas revolution has changed the geopolitical landscape of
energy for America”and perhaps for the world. What could this mean for Ukraine, its current crisis and threats emanating from Russia? Yuri Boyko:
I believe that with support from Washington and the European
capitals, energy can be an important tool in preserving Ukrainian sovereignty
in the face of the recent Russian aggression in Crimea and its threats against
Eastern Ukraine. Ukraine's new government in Kiev needs Washington's support on energy as part of an overall effort that includes sanctions, both in the short- and long-term, in order to change the balance of power in Central Europe.
Amid these defensive options against Russia, what is a longer-term plan
for Ukraine, for Ukrainian energy, and for oil and gas wealth buried in
Ukrainian shale? Yuri Boyko:
This is where the new Ukrainian government will play a critical role,
providing policy, technical and financial guarantees for American and European
companies to develop our substantial natural gas reserves. Chevron and Shell are currently in the process of exploring the massive shale fields in both the east and west of Ukraine. But Ukraine also needs oil field service providers, technical expertise and education programs to expand our own domestic supply as in the US. Again, this is where Washington can help, by sending advisors to Kiev, perhaps from DOE [Department of Energy] and FERC [Federal Energy Regulatory Commission].
Putin discusses energy plans with Exxon's CEO Security Services Needed Police and security personnel have been strained to the limit, which has opened the door to thievery, kidnapping, burglaries, etc. One might find the U.S. Ukraine Chamber of Commerce website very helpful. On scheduled forum this month is: "Chamber Roundtable Discussion "From Crisis to Recovery to Growth: "The Path to Realizing Ukraine'sEconomic Potential" They may be reached through their informative website http://www.chamber.ua.
There is also a very trusted and reliable pro West law firm in Kyiv. Senior partner Sergiy Oberkovych and partner Valentyn Gvozdiy are fluent in English and have established their firm to Western Standards.
Sergiy Oberkovych and Valentyn Gvozdiy at www.GoLaw.com
Contact: Bob Edgren Ukraineconnect
Tel. (831) 402-2111 Email firstname.lastname@example.org
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By MBITA contributor Robert Edgren March 25, 2014