Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Kyiv says Big Oil should pay to rebuild Ukraine’s shattered infrastructure

Kyiv says Big Oil should pay to rebuild Ukraine’s shattered infrastructure

Energy minister also warns the war risks dragging on forever unless the West closes sanctions loopholes on the Kremlin’s hydrocarbon revenues.

Major international energy companies that raked in bumper profits because of price spikes over the course of the war should pour some of that cash into rebuilding Ukraine's shattered power infrastructure, Kyiv's Energy Minister German Galushchenko told POLITICO.

In a wide-ranging interview, Galushchenko also argued the West needed to close sanctions loopholes on Russian energy sales to prevent an "endless war" in Ukraine, and said Kyiv could provide alternative nuclear fuel so some EU countries could wean themselves off their dependence on Russian supplies.

"A lot of energy companies get enormous windfall profits due to the war. So we estimated this at more than $200 billion," Galushchenko said on a visit to Brussels. "They get this money because we are fighting, because of the war."

"I think it would be fair to share this money with Ukraine. I mean, to help us to restore, to rebuild the energy sector," he added.

The $200 billion figure given by Galushchenko has been widely cited as the profits of five top companies — BP, Chevron, ExxonMobil, Total and Shell — in 2022. The Kyiv School of Economics estimates the damage to Ukrainian infrastructure at close to $140 billion.

The minister noted that a Lithuanian company, Ignitis Group, is already looking to hand over some 10 percent of its profits to help reconstruction in Ukraine and said bigger companies should follow suit.

Galushchenko also warned that Moscow would be able to wage a perpetual war in Ukraine for as long as the Kremlin is able to rake in cash from selling fossil fuels. Despite sanctions against Russian oil imports imposed by the EU and a price cap set by the G7 club of rich democracies, he warned that Russian President Vladimir Putin was still finding ways to beat international embargoes.

"If on one side you're trying to restrict them and on the other you're giving them opportunities, you'll allow them to make endless war," he complained, arguing the Kremlin was using its energy export earnings "not to help Russian people to live better" but "to produce weapons" and keep the war going.

"This money costs Ukrainian lives," he said.

Russia boasts that it has diverted its oil supplies to friendly countries such as China and India, but there are signs that restrictions from big Western markets are biting hard.

Calculations by Bloomberg on March 3 suggested that tax revenues from oil almost halved in February from a year ago, while gas revenue dropped 42 percent from a year earlier given reduced sales to Europe. The EU's ban on Russian oil has been a key factor is torpedoing the price of Urals crude.

Keen to keep up that pressure, Galushchenko protested that some oil was still seeping under the cordon.

Ukraines Energy Minister German Galushchenko


"It's important not to help Russia to escape sanctions," he said, arguing that "sanctions are efficient only if you have no way to escape and we see the Russians are trying to escape — in some cases, they find a way."

His warning comes amid recent reports that Moscow's hydrocarbons may be reaching EU countries via Azerbaijan and Turkey. Allegations are also growing that Russian oil has been discreetly sold at prices far exceeding the $60 cap imposed by the G7 in December.

The EU's plan to make the bloc independent from Moscow's fossil fuels before 2030, called RePowerEU, includes encouraging member countries to jointly purchase natural gas, and the Ukrainian minister said his country also wanted in on that program.

While the EU has slashed its oil and gas imports from Russia, the bloc still has 18 Russian-designed VVER reactors — located in Finland, Slovakia, Bulgaria, Hungary and the Czech Republic — for which no alternative fuel supply exists so far.

Rather than continuing to rely on Russia, they could soon buy their supplies off Kyiv, he said. Ukraine is in the process of making specially-tailored replacement nuclear fuel along with Westinghouse of the U.S. that could be ready by "the beginning of next year."

A destroyed bridge over the Murom river near Russkiye Tishki


He also called on the European Commission to set an EU-wide target for eliminating countries' reliance on Russian nuclear technology, while reiterating Ukraine's call to bring sanctions against Moscow's state-run atomic giant Rosatom for its role in overseeing the occupied Zaporizhzhia nuclear power plant. So far, the EU has refrained from hitting Russia's nuclear industry with sanctions.

"They are participating in the capture and illegal operation of [this] nuclear station," Galushchenko said.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
U.S. and Hungarian Officials Talk About Economic Collaboration and Sanctions Strategy
Technology Giants Activate Lobbying Campaigns Against Strict EU Regulations
Pope Francis Admitted to Hospital in Rome Amid Increasing Speculation on Succession
Zelensky Calls on World Leaders to Back Peace as Tensions Rise with Trump
UK Leader Keir Starmer Calls for US Security Guarantee in Ukraine Peace Deal
NATO Chief Urges Higher Defense Expenditure in Europe
The negotiation teams of Trump and Putin meet directly, establishing the groundwork for a significant advancement.
Rubio Touches Down in Riyadh Before Key U.S.-Russia Discussions
Students in Serbian universities Unite to Hold Coordinated Protests for Accountability.
US State Department Removes Taiwan Independence Statement from Website
Abolishing opposition won't protect Germany from Nazism—this is precisely what led Germany to become Nazi!
Transatlantic Gold Rush: Traders Shift Bullion in Response to Tariff Anxieties and Market Instability
Bill Ackman Backs Uber as the Company Shifts Towards Profitability
AI Titans Challenge Nvidia's Supremacy in Light of New Chip Innovations
US and Russian Officials to Meet in Saudi Arabia Over Ending Ukraine Conflict. Ukraine and European leaders – who profit from this war – excluded from the negotiations.
Macron Calls for Urgent Summit as Ukraine Conflict Business Model is Threatened
Trump’s Defense Secretary: Ukraine Won’t Join NATO or Regain Lost Territories
Zelensky Urges Europe to Bolster Its Military in Light of Uncertain US Backing
Chinese Zoo Confesses to Dyeing Donkeys to Look Like Zebras
Elon Musk is Sherlock Holmes - Movie Trailer Parody featuring Donald Trump's Detective
Trump's Greenland Suggestion Sparks Sovereignty Discussions Amid Historical Grievances
OpenAI Board Dismisses Elon Musk's Offer to Acquire the Company.
USAID Uncovered: American Taxpayer Funds Leveraged to Erode Democracy in Europe Until Trump Put a Stop to It.
JD Vance and Scholz Did Not Come Together at the Munich Security Conference.
EU Official Participates in Discussions in Washington Amid Trade Strains
Qatar Contemplates Reducing French Investments Due to PSG Chief Investigation
Germany's Green Agenda Encounters Ambiguity Before Elections
Trump Did Not Notify Germany's Scholz About His Ukraine Peace Proposal.
Munich Car Attack Escalates Migration Discourse Before German Elections
NATO Allies Split on Trump's Proposal for 5% Defense Spending Increase
European Parliament Advocates for Encrypted Messaging to Ensure Secure Communications
Trump's Defense Spending Goal Creates Division Among NATO Partners
French Prime Minister Bayrou Navigates a Challenging Path Amid Budget Preservation and Immigration Discourse
Steering Through the Updated Hierarchy at the European Commission
Parliamentarian Calls for Preservation of AI Liability Directive
Mark Rutte Calls on NATO Allies to Increase Defence Expenditures
Dresden Marks the 80th Anniversary of the World War II Bombing.
Global Community Pledges to Aid Syria's Political Transition
EU Allocates €200 Billion for AI Investments, Introduces €20 Billion Fund for Gigafactories
EU Recognizes Its Inability to Close the USAID Funding Shortfall Due to Stalled US Aid
Commission President von der Leyen Missing from Notre Dame Reopening Due to Last-Minute Cancellation
EU Officializes Disinformation Code for Online Platforms, Omitting X
EU Fails to Fully Implement Key Cybersecurity Directives
EU Under Fire for Simplification Discussions Regarding Corporate Sustainability Reporting
Shein Encountering Further Information Request from the EU During Ongoing Investigation
European Commission Initiates Investigation into Shein as It Aims at Chinese E-Commerce Regulations
German Officials Respond to U.S. Proposal for Peace Talks with Russia
Senate Approves Robert F. Kennedy Jr. as Secretary of Health and Human Services.
Trump and Putin Engage in Discussions on Ukraine Peace Negotiations Amid Worldwide Responses
Honda and Nissan End Merger Talks
×