HOUSTON — A top official at Ukraine’s state-owned energy company blasted the Trump administration’s move to lift sanctions on Russian oil to temper rising prices amid its war in Iran.
“Given this price volatility, there is a lot of temptation to make business as usual with Russia,” Oleksii Riabchyn, chief international officer at Naftogaz, said at the POLITICO Pub at CERAWeek by S&P Global. “But this is the wrong approach, because the more they have, the more they will ship drones or missiles to Iran, or the more they fire on us.”
“This makes me really upset,” Riabchyn added.
The Trump administration loosened sanctions on Russian oil headed to Indian refineries and Russian crude already loaded on vessels in a bid to temper surging crude prices. Moscow has cheered the rise in prices as Iran’s attacks on oil tankers in the Strait of Hormuz choke off supply from Gulf countries.
Riabchyn said Ukraine is working to position itself as a major natural gas hub for Europe through a network of “big, beautiful storages” that can hold liquefied natural gas from the U.S. and other non-Russian suppliers. That could help insulate Europe from price shocks like the Iran war, he noted.
“It’s a really great possibility to withdraw and to ship, daily, three cargos of LNG to the European Union,” Riabchyn said.
Riabchyn said Ukraine would be interested in talks with Turkey about shipping LNG through the Bosphorus Strait, which would allow Kiev to import LNG directly through a port on the Black Sea.
“Some of the restrictions that were put to the Bosphorus Strait 10 years ago … are no longer there,” he said. “So we will be happy to discuss with our Turk counterparts, and with American companies on … how we can leverage this.”
That could supplement ongoing efforts with the United States to develop “vertical corridors” to import American LNG through countries like Greece, Riabchyn said.
“This is our dream for like 10 years, to have our own [Floating Storage Regasification Unit],” he said.
THIS WEEK ONLY: Follow POLITICO Pub CERAWeek like an insider with a free 7-day trial of POLITICO Pro’s Morning Energy newsletter, delivering the deals, policy moves, and conversations shaping the week. Plus access to E&E News, POLITICO’s essential suite of energy and environment coverage. Sign up now.