Caspian Energy (CE): Mr. Tigipko, what are the main activities that the government carries with the purpose to attract investments into the Ukrainian economy?

Sergiy Tigipko, Vice Prime Minister and Minister of Social Policy of Ukraine: First of all we try to maximally simplify the access for an investor into the Ukrainian market. The law on single investment window has gained force since the beginning of the current year. According to the law, the authorized company InvestUkraine accompanies an investor at all stages of project implementation; starting from the search for a land and feasibility study development till all necessary permits have been received. We attract investors on basis of sectoral and territorial principles. Related communal enterprises are created in each sphere. The enterprises become centers for attraction and accompaniment of investors. For instance, such center in the Kiev region currently accompanies implementation of 50 projects.

 A number of branches enjoy privileges including tax remissions on the legislative level. It concerns ship and plane construction, light industry, hotel business, companies engaged in power saving and alternative energy as well. A package of laws on providing address privileges to investors who implement project in priority economic spheres and create new working places will gain force starting from 2013.  Reforms that the government has been implementing since 2010 also aim at improvement of the investment climate. It includes adoption of Customs and Tax codes, reduction of audits and the amount of controlling bodies and simplification of accountability of enterpreneurs.

 As the result, we have been witnessing the inflow of foreign investors into Ukraine for the last two years in spite of the global economic crisis. I expect the revival in the investment sphere in the coming two years when the implementation of the biggest and advanced investment projects starts – shale gas production in West and East Ukraine, oil and gas production in the Black Sea shelf, reconstruction of heat and power plants, thermal power plants and refineries, modernization of hydropower plants, construction of new wind parks and solar plants, the launch of construction of new units of nuclear power plants. The amount of investments (both Ukrainian and foreign) to be expected in the energy sphere alone will be worth tens of billions of dollars in coming decade. We set an ambitious target to radically reduce the energy content of the economy, reform a market of coal and power industry as well as ensure energy independence of the state. Tenders for gas development at Yuzov, Oless and Skif fields were held a few months ago. The contractual documentation is under development. National Joint-Stock Company Neftegaz develops Odessa and Shtorm fields now. Two platforms have already been purchased. A tender was announced for purchase of two more platforms. Commercial production on these fields will probably be launched in 2017. The development of the feasibility study for LNG terminal construction is also on verge of completion. 

The size of investments that the Black sea countries intend to draw into the oil-gas projects in coming decade equals to the sum of investments that have been lately attracted by the Caspian region countries. According to the optimistic plans, we will manage to meet all our gas demand and stop import in 10 years.