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years, the company is going to invest in E&P $20-25bn. The new investments will allow Naftogaz to stop the decline of its hydrocarbon reserves by 2025, according to its press release. The company is planning to perform exploration works by its own and attract partners at the development and production stages. As announced in the strategy presentation, Naftogaz is planning to expand to 2.87mn clients and to 35% of the retail gas market in 2025, from 0.85mn clients in February 2021. The company aims at providing clients with “integrated energy solutions” and entering low-carbon businesses in the mid-term. Through this, Naftogaz is planning to transform itself and get ready for an IPO by 2025, its press release states.
Gazprom cut its exports via Ukraine by 20% on February 17, ​to 94.9mmcm per day and by 26% to 88.2mmcm per day on Thursday, 18 February. Both cuts are compared to the recent “more normal” level of 119mmcm per day from 1-16 February. In January, daily exports averaged 124.5mmcm per day, and this number was at 182.6mmcm per day in December 2020. Gazprom is required to export 40bcm via Ukraine this year, which averages to 110mmcm per day.
The amount of gas in European underground storages fell to below 36%
of capacity, ​Kommersant​ reports. Lifting gas from storage is going to continue for another month, which might bring the levels even lower by the start of the injection season. Gazprom is confident that this is going to support gas demand in Europe throughout the year, with market participants trying to build up sufficient gas stocks before next winter. An additional consideration is that the forward curve implies lower gas prices in mid-2021, which might spur gas purchases later on in the year. Overall, this is not a new tendency: it has been mentioned by Gazprom previously and has been acknowledged by the market, we think. The current spread between the Asian and the European spot gas prices has dropped from its January highs to just $19/kcm, which suggests partial LNG rechanneling to Europe putting pressure on the gas price. We note that the current TTF gas price is $200/kcm, while the May forward price stands around $192/kcm.
9.1.3​ Transport sector news
● Planes
Ukraine hopes to sign its long-delayed Open Skies agreement with the EU in February​, when Charles Michel, president of the European Council, visits Kyiv, Prime Minister Shmyhal tells Ukrinform. Fresh from a 2-day visit to Brussels, Shmyhal says: “At a face-to-face meeting, [EU Foreign Minister Josep] Borrell confirmed there were no issues with Ukraine.”
Ukraine withdrew from the agreements on civil aviation and the use of airspace signed within the framework of the Commonwealth of Independent States (CIS). ​The corresponding decree was signed by the President of Ukraine Vladimir Zelensky on Tuesday, according to his official website. It was specified that Ukraine is withdrawing from the agreement on civil aviation and the use of airspace signed on December 25, 1991, and from the airspace agreement dated May 15, 1992.
Ukraine plans to launch a state-owned national airline by the end of this year,​ Kyrylo Tymoshenko, deputy presidential chief of staff, told reporters in February at the infrastructure forum. “We have an ambitious goal of creating a
53​ UKRAINE Country Report​ March 2021 ​ ​www.intellinews.com