Ukrainian CEO warns Europe against Russian gas revival
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Photo illustration: Axios Visuals. Photo: Courtesy of DTEK
HOUSTON — Maxim Timchenko has a warning for any European politicians weighing a return of Russian pipelined gas: the true costs vastly exceed the sticker price.
Threat level: "People shouldn't be naive that Russian gas can be cheap. Absolutely not. The price can be paid in different forms," the CEO of DTEK, Ukraine's largest private energy company, tells Axios.
- His advice about the energy security risks and other jeopardy came in our interview at last week's CERAWeek by S&P Global conference.
- "Russians will never sell gas with [a] discount to market prices without asking for something," he said.
Why it matters: The specter of resuming pipeline flows — now a small slice of pre-invasion levels — has surfaced in talks around a peace deal and as high prices undercut EU industrial strength.
- "If, say, the U.S. and Russia agree on cooperation in the energy sector, then a gas pipeline for Europe could be ensured," Russian President Vladimir Putin said March 13, per Bloomberg and other reports.
- "And this will benefit Europe, as it will receive cheap Russian gas," he said.
Inside the room: Timchenko used CERAWeek for talks around more deals to bring U.S. LNG to Ukraine, which began late last year via its agreement with Venture Global.
- "Our idea is to build this bridge between the United States and Ukraine, Europe and Ukraine," he said.
- "Ukraine has the largest gas storage facility [in Europe], and definitely it should play [an] important role in energy security of Ukraine and Europe today," Timchenko said.
- He met with members of DOE head Chris Wright's team, among other officials, he said.
Catch up quick: Russia was Europe's dominant supplier before the invasion of Ukraine, providing nearly half of the bloc's gas, but now it's around 13% including LNG.
The big picture: Timchenko talked up the potential for Ukrainian gas and renewables to be a "very important part of [the] energy security landscape in Europe."
- "We have access to infrastructure. We have very good wind and solar potential. We have a lot of gas," Timchenko said.
- "Ukraine will become an exporter of clean energy, mixing nuclear and renewables," he said, touting growth potential for both.
Yes, but: Russian attacks have badly damaged Ukrainian energy infrastructure, and the country faces massive rebuilding.
- Timchenko notes that the country hasn't stopped development, even amid the invasion, but he's seeking private investment to boost renewables and oil and gas.
- He said he would embrace the proposed mineral and energy deal between the U.S. and Ukraine.
- "We welcome any deals that bring in more U.S. and European companies to the Ukrainian market," Timchenko said. "We need fresh capital. We need technology, we need expertise ... we need more competition in the market."
What we're watching: He's hoping to announce deals with U.S. companies at a major Ukraine recovery conference in Rome scheduled for July.
