Politicians divided on deal with Shell on extraction of shale gas in Ukraine

Kyiv, January 28 (Interfax-Ukraine) – Politicians differ in opinions on the importance of the signing and realization of a product sharing agreement (PSA) by Shell and Nadra Yuzovska on the extraction of shale gas at the Yuzovska field in Kharkiv and Donetsk regions in the economic and ecological aspects.

"For Yanukovych, the signing of the agreement is a large political success in Davos. This is a demonstration of the fact that nothing is so bad, companies contact me and agree with me," Director of the Penta Center for Applied Political Studies Volodymyr Fesenko said at a press conference at Interfax-Ukraine on January 25, 2013.

He said that nothing was simple from the point of view of the environment.

"It's absolutely clear that we have to settle the problem and look for alternative sources of gas. We also have to try not to have a negative impact on the environment," Fesenko said.

He also said that there is a challenge to opposition in the signing of the agreement.

"We see that Svoboda is holding its own campaign against the extraction of shale gas… The question inevitably arises: is this an attempt to chip at a hot topic and use it for its own benefit, or is this in line with the interests of Russia's Gazprom," the politician added.

Director of the Institute for Global Strategies Vadym Karasiov said that the agreements should be assessed from the environmental point of view.

"I wouldn’t be so optimistic about the event. One should not make a fetish of Russian gas, and they are launching a risky project, which puts our environment in jeopardy, so as to stop buying Russian gas," he said.

He said Shell is going to explore for shale gas in densely populated regions of Ukraine.

"Despite the media importance of the agreement, I would have a cautious attitude to it, as there is a media effect and there is an economic and environmental effect," Karasiov said.

"I think that this is a typical principle of our Ukrainian attitude to problems that were forced on us by political pressure. Why will Shell get such benefits, and why did we give up and say that [Shell] will get all the benefits. It's wrong, I think," Director of Political Studies and Conflictology Center Mykhailo Pohrebynsky said.

As reported, the PSA agreement between Shell and Nadra Yuzovska on the Yuzovska field was signed on January 24, 2013 in Davos in the presence of Ukrainian President Viktor Yanukovych.