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a consortium led by the Italian company<br />
ENI (which also includes EDF,<br />
Vody Ukrainy and Chornomornaftogaz)<br />
for the South, and for the rest,<br />
with another Ukrainian-Russian<br />
consortium led by Vanco (a company<br />
held by oligarch Rinat Akhmetov)<br />
together with Lukoil.<br />
The expansion of the petroleum sector<br />
in Ukraine led Mykola Azarov,<br />
former Prime Minister of Ukraine,<br />
to announce in the summer of 2013<br />
that he expected his country to become<br />
self-sufficient in terms of natural<br />
gas production in the next 10<br />
years, which would probably allow<br />
for exports by around 2020. Currently,<br />
two-thirds of the natural gas<br />
consumed in Ukraine is imported<br />
from Russia, Moscow’s second largest<br />
gas importer after Germany.<br />
However, the ensuing political tensions<br />
had Exxon Mobil announce in<br />
March <strong>2014</strong> the suspension of all its<br />
THE MOST IMPORTANT QUESTION FOR COUNTRIES IN<br />
THE REGION IS A POTENTIAL RECONSIDERATION OF<br />
BORDERS OF THEIR TERRITORIAL SEAS, CONTINENTAL<br />
SHELVES AND EEZS, WITH RUSSIA HAVING TAKEN<br />
CONTROL OF CRIMEA.<br />
activities conducted in the Ukraine<br />
Skifska block, pending the resolution<br />
of the situation in Ukraine. Shell<br />
announced cessation of any discussions<br />
on such a project.<br />
From a legal perspective, oil companies<br />
are facing the situation of petroleum<br />
agreements signed with a<br />
partner (the Ukrainian government)<br />
which, after losing jurisdiction over<br />
the EEZ in the Black Sea in Russia’s<br />
favour, no longer holds de facto control<br />
over the rights granted to companies.<br />
In addition, right after Crimea’s declaration<br />
of independence, the local<br />
79<br />
CASPIAN REPORT, FALL <strong>2014</strong>
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