Ukraine Opens Gas Exports for Private Producers for First Time Since 2022

Ukraine’s government on Oct. 7 approved the partial opening of natural gas exports, lifting a ban that had been in force since Russia launched its full-scale invasion in 2022, according to ExPro, citing its own sources.Private producers will be allowed to sell up to 15% of the gas they extracted in the previous month to foreign buyers. The mechanism excludes the state-controlled majors.JOIN US ON TELEGRAMFollow our coverage of the war on the @Kyivpost_official.Discussions on whether to open exports intensified in the summer, and the government returned to the issue in September after initially postponing it until spring 2027, ExPro reported. Market participants tied the need to restart exports to a gas surplus in the commercial segment, a wide gap between Ukrainian and European prices, and producers’ need for funds to restore and protect their facilities.A plan of priority actions for 2026, adopted by Cabinet order No. 999-r on Sept. 30 and published on the government portal, instructs the Ministry of Energy to create the legal and organizational conditions for a controlled export mechanism covering 15% of domestically produced gas.The plan argues this would help the gas production sector by drawing in investment, and it set September 2026 as the target for opening exports. The order replaces an earlier version of the plan, adopted on March 30 under order No. 306.Why government is relaunching gas export for the first time since 2022Gas consumption by industrial users fell by almost half after the full-scale war in Ukraine began, ExPro reported, while output by private companies, the main gas suppliers to industry, has held relatively steady despite Russian attacks. According to ExPro, private companies produced more than 370 million cubic meters of natural gas in August 2026. Other Topics of Interest Russia’s Birthday ‘Gift’ to Putin: 70 Missiles Strike Ukraine, Hitting Homes and Killing Civilians Four children were among 14 people killed in Pryluky, where a Russian strike destroyed an ordinary five-story apartment building. European prices jumped after the war in the Middle East began, while Ukrainian prices remained stable. By mid-September, gas in Ukraine was 2.5 times cheaper than in Europe.Ukraine’s underground storage facilities have been holding more than 15.8 billion cubic meters of gas, according to ExPro’s calculations based on data from Gas Infrastructure Europe (GIE). That is 1.2 billion cubic meters more than the government’s plan required by Nov. 1.How the gas export policy will workThe resolution takes effect on the day of its publication, and the mechanism will apply each year from March 1 to Nov. 30.It does not cover gas produced under production sharing agreements, which are governed by separate legislation. It also does not apply to market participants with special obligations under Cabinet Resolution No. 222: Ukrgasvydobuvannia, Ukrnafta and Chornomornaftogaz.The Ministry of Energy will approve a list of eligible companies and the volume each may sell by the 12th day of every month, based on data from the Gas Transmission System Operator of Ukraine (GTSOU) on actual gas supplied to the system the previous month.Gas will be sold at specialized sessions of a commodity exchange, likely the Ukrainian Energy Exchange, according to ExPro. Only companies on the ministry’s list can sell, and only non-resident companies can buy. The highest bidder wins. Sellers must state the volume, a starting price in euros per megawatt-hour and a delivery point, defined as an exit point on Ukraine’s border with EU countries or Moldova.A producer’s unused monthly limit will not carry over. Gas already sold on the exchange can be exported in the month of the auction or during the following two months. GTSOU will report each seller’s actual export volumes to the ministry by the 15th of every month.Gas exports will have their safeguardsIn a crisis, exports can be suspended temporarily by a decision of the Crisis Committee under the Ministry of Energy, taken on the ministry’s initiative or at the request of Naftogaz or GTSOU. The ministry must then approve the decision.Unless it says otherwise, the decision takes effect on the day it is adopted and halts specialized exchange trading. Gas sold for export before that date can still be shipped, provided the established procedure is followed. Olena Hrazhdan is the Business Reporter at Kyiv Post, covering Ukraine’s markets, business, and economic policy. While she reports broadly on economic issues, her core focus is banking, finance, monetary and fiscal policy. Olena previously wrote for leading Ukrainian business media and became a Fellow of the International Monetary Fund’s Journalism Fellowship in 2024.