Caspian Energy (CE): Mr. Azarov, what does the concept “energy security” mean for Ukraine? Which international projects are now planned for implementation to reinforce it? 

Mykola Azarov, Prime Minister of Ukraine: Like for any other country, energy security for Ukraine is first of all the question of national security. For the last two and a half years we have made enormous efforts for development of large-scale projects with the aim in mind to minimize dependence on external energy sources and diversify supplies. 

Programs of a wider use of coal are now underway, since this is the only energy carrier in Ukraine that can fully meet demands of the national economy because of abundant coal resources available (about 117.5 billion tons). These programs include coal gasification, production and use of methane from coal fields as alternative fuel (industrial resources make 3-3.5 trillion cubic meters, which is more than 2 times exceeds expected reserves of natural gas in Ukraine), re-equipment of existing and construction of new energy generating capacities with replacement of natural gas by water coal fuel or a mix of stone and brown coal.

Development of enterprises for production and complex processing of peat and brown coal as alternative types of fuel will allow reducing consumption of imported natural gas by about 1 billion cubic meters a year. 

Challenges of international value are exploration of oil and gas fields on the Black Sea shelf, development of shale gas reserves, the project of construction of a regasification terminal for LNG supplies.

The nuclear power industry is not forgotten, since 15 energy units are now operational in Ukraine. So, the other day I and Director General of Rosatom State Corporation Sergey Kiriyenko put a symbolical stone on the site of construction of a joint Ukrainian-Russian nuclear fuel production plant in the Kirovograd area. This plant will start working already in 3 years and completely meet demands of all our reactors.