Ukraine's Naftogaz Says Russia's 'Aggression' May Threaten Black Sea Shelf Development

KIEV (UrduPoint News / Sputnik - 27th November, 2020) Russia's Black Sea Fleet may threaten Ukraine's plans to develop its part of the shelf, as risks of "aggression" will deter foreign investors from joining the project, CEO of Naftogaz of Ukraine Andriy Kobolyev said on Friday.

Earlier in the week, the Ukrainian government granted Naftogaz of Ukraine a license to explore oil and gas in the shelf for a period of 30 years without competition. The energy company has announced plans to start geological research in the region as soon as possible.

"The first step we are planning is research. Everything will depend including on such a factor as the Russian Navy, which is now present in the Black Sea and has actively prevented us from taking any action up to now. We need to take this aspect of risk into account and choose a way to minimize it," Kobolyev told an online briefing on Ukraine's gas independence.

According to the CEO, opportunities of engaging international investors in developing Ukraine's part of the shelf will depend on the elimination of a possible risk of "aggression" from Russia's Black Sea Fleet.

President Volodymyr Zelenskyy earlier offered US companies to join projects to extract natural gas and oil in his country and develop the Black Sea shelf.

The Ukrainian parliament designated Russia as an "aggressor state" in January 2015 over alleged interference in Ukraine's internal affairs and involvement in the Donbas conflict. To this day, Kiev also insists that Crimea is an occupied territory.

Russia has repeatedly denied the allegations, saying that it is not a party to the Ukraine conflict and wants the country to overcome its political and economic crises. Moscow has also stressed that the referendum on Crimea rejoining Russia was held democratically and in line with international law.