Media: Ukraine bets on shale gas boom to rebuild economy, power Europe

Ukraine is pushing ahead with plans to develop its shale gas resources in a bid to become a major energy exporter and help stabilise Europe’s energy markets.

The move is central to President Volodymyr Zelenskyy’s wider strategy to rebuild the economy after the war, Caliber.Az reports, citing The Telegraph.

Officials in Kyiv are working to attract foreign investment and gain access to advanced drilling technology to unlock large, untapped shale gas reserves, particularly in western Ukraine. 

A key focus is the Oleska shale block, near the Polish border, which is estimated to hold up to 1.5 trillion cubic metres of gas.

The country’s energy sector suffered heavy damage over the winter, with Russian missile and drone attacks wiping out around 40% of gas production. Ukraine was forced to rely heavily on its reserves, which are now almost empty.

Government officials believe they can not only refill the country’s vast underground storage but also begin exporting gas within 18 months.

Ukraine’s energy ministry says the country has enough conventional gas to meet domestic needs. If shale gas production takes off, Ukraine could become a net exporter. This would ease Europe’s dependence on costly liquefied natural gas (LNG) from overseas, particularly after the loss of Russian pipeline gas earlier this year.

However, success depends on attracting outside investment. Kyiv is actively courting Western capital and technology, and a Ukrainian delegation recently promoted its shale ambitions at the Baku Energy Forum. Talks are underway with US investors following a separate rare earths deal signed with President Donald Trump in April.

The government has also taken steps to remove red tape. In April, Ukraine’s largest oil and gas producer, the state-owned Ukrnafta, took over the Oleska project from a government holding company, marking a shift in Kyiv’s approach.

The move aims to give investors more confidence, though martial law and nationalised industries continue to complicate matters.

Despite the risks, officials say legal mechanisms are in place to allow private capital to operate. If successful, Ukraine’s shale gas revolution could transform its economy and reshape Europe’s energy future.

By Aghakazim Guliyev