Last updated on April 20, 2014 at 14:04 EDT

We Offer Investor Friendly Environment – Ukrainian President

May 22, 2012

KYIV, Ukraine, May 23, 2012 /PRNewswire/ –

The President of Ukraine Viktor Yanukovych regards interest of such major
international companies as Chevron and Exxon Mobil as an indication for effective
cooperation between investors and the state. Speaking to journalists at the 2012 NATO
Summit in Chicago, Ukrainian leader reckoned that Ukraine provided favorable conditions
for capital investments.

Ukraine exempted companies which produce shale gas in the country from import tax on
equipment and export duty, stated earlier Roman Storozhev, president of the Gas Traders of
Ukraine Association. Moreover, in case several deposits are discovered in one field they
are taxed as one tax object, according to Storozhev.

During the Chicago summit President Yanukovych also expressed hope that cooperation
with Chevron would contribute to the development of gas fields in Ukraine. As a result,
this would help Ukraine diversify energy sources. The statement followed the meeting of
the Ukrainian leader with Vice President of the American company Ian MacDonald on May

While in Chicago, Ukrainian leader also met with Exxon Mobil executive Stephen
Greenlee. During the meeting the parties signed memorandum regulating cooperation between
the Ukrainian Ministry of Ecology and Natural Resources and Exxon Mobil Exploration.

Ukrainian oil and gas sector attracts a string of international companies. According
to NJSC Naftogaz, in 2011 Ukraine started cooperation with ExxonMobil, Chevron,
Halliburton, Total, RWE, Eni, and StatOil regarding development of unconventional

Recently, Chevron and Royal Dutch Shell plc obtained the right to develop Ukrainian
shale gas fields. The estimated investment in the fields will amount to at least USD 370
million. The number would grow significantly should the gas reserves prove to be
commercially viable.

In May of 2012 British company Cadogan Petroleum declared its plans to invest up to
one billion dollars in the development of Ukrainian hydrocarbons. Besides the estimated
reserves, company executive listed the developed infrastructure on border with Western
Europe as a contributing factor for their decision.

Additionally, in September of 2011 Ukraine signed a deal on development of
unconventional hydrocarbons with Exxon Mobil Corporation and an agreement that regulates
the involvement of the Royal Dutch Shell plc in shale gas extraction and diversification
of energy resources mining in Ukraine. Shell plans to invest up to USD 800 million into
the project.

SOURCE Worldwide News Ukraine

Source: PR Newswire