Ukraine Signs $10 Billion Shale Gas Deal with Shell

Ukraine Signs $10 Billion Shale Gas Deal with Shell

<h1>Ukraine Signs $10 Billion Shale Gas Deal with Shell</h1><img src="http://www.voanews.com/App_Themes/VOA_en-US/img/colorLogo.gif"/>Ukraine has signed a $10 billion shale gas exploration deal with Royal Dutch Shell -- a major step in weaning Ukraine off Russian gas exports.<br /> <br /> Ukrainian President Viktor Yanukovych oversaw the signing of the 50-year production sharing deal Thursday at the World Economic Forum in Davos, Switzerland, calling it &quot;just the beginning.&quot;<br /> <br /> Experts believe Ukraine has one of the world&#39;s largest deposits of shale gas -- enough to supply the country&#39;s energy needs for decades.<br /> <br /> Shell plans to drill 15 test wells into a massive gas field in eastern Ukraine.<br /> <br /> Ukraine is widely dependent on exported Russian natural gas for its energy needs. Ukraine says Russia charges too much and is unwilling to renegotiate the price.<br /> <br /> Russia insists Ukraine join a Russian-led trade union before it talks about gas prices.<br /> <br /> Russia cut gas supplies to Ukraine twice in the past seven years because of price disputes. The cuts disrupted supplies into Eastern Europe in the middle of freezing cold winters.<link rel="canonical" href="http://www.voanews.com/content/ukraine-signs-10-billion-shale-gas-deal-with-shell/1590447.html"/><meta name="syndication-source" content="http://www.voanews.com/content/ukraine-signs-10-billion-shale-gas-deal-with-shell/1590447.html"/><img src="http://livetracker.voanews.eu/counter.lt?PageType=256&RecordId=1590447&SiteId=415&r=1897011315&it=0&pd=20130124213243&url=ArticleID1590447" alt="" style="border:none;" height="1" width="1">

Copy to clipboard Close