Affect of Ukraine Russia Conflict On Oil and Gas Industry in Ukraine

BROOKLYN, N.Y. - April 22, 2022 - PRLog -- The Ukraine oil and gas is a strategically important industry for the government, which has been making all attempts to gain independence from foreign oil and gas imports. The Russian invasion of Ukraine began on February 24, 2022, with the attack being launched from multiple directions. In the weeks that followed since the war started, it is estimated that nearly three million citizens have fled the country, and there has also been mass destruction of the infrastructure in Ukraine. There is no doubt that this conflict is not only having but also going to have far-reaching implications on the entire European energy sector, considering that Russia accounts for nearly 40 percent of Europe's natural gas supply during 2021, with a third of this passing through the pipeline network of Ukraine, and 25 percent of Europe's oil supply.
At the same time, the COVID-19 pandemic hit Ukraine particularly hard in the fourth quarter of 2020, with the cases rising dramatically. With a raging pandemic, Ukraine's economy also contracted by 5.5% in 2020, though it was expected that the economy will bounce back by the end of 2021. The COVID-19 pandemic continued to affect Ukraine's oil and gas industry on the demand side, as the nationwide lockdown and recession impacted fuel usage across all sectors.
At the same time, while gas flows through Ukraine to Europe are going on uninterrupted as of now, but there are considerable risks, not only from the Russian threat to cut off supplies but also due to the damage caused to the infrastructure. In fact, Naftogaz, Ukraine's state energy company, has already reported several incidences of damage to the domestic pipeline network since the war began.
Looking at this, it is natural to expect a sharp downturn in the consumption of oil and gas in 2022 due to this conflict. Based on this, both short-term and long-term forecasts have been revised as we foresee a contraction in the consumption of refined fuels by over 20 percent, with a similar reduction likely in gas consumption as well by the end of 2022.
Aruvian Research presents an in-depth analysis of the Oil and Gas Industry of Ukraine in its research report Oil and Gas Industry in Ukraine – Forecast and Analysis 2022 keeping in mind the ongoing Russia-Ukraine conflict.
Read Full Report Here : https://www.aruvian.com/business-information-services