Crimea cost Ukraine over $10 billion in lost natural resources

KIEV Mon Apr 7, 2014 10:23am EDT

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KIEV (Reuters) - Ukraine's ecology and natural resources minister estimated on Monday that Kiev had lost natural resources and related assets worth 127 billion hryvnias ($10.8 bln) when Russia annexed the Crimea region.

Ukraine has said it will file compensation claims with international courts over the annexation of Crimea, which Ukrainian Prime Minister Arseny Yatseniuk said could ultimately cost Kiev "hundreds of billions of dollars".

Andriy Mokhnyk's spokesman said the minister had told a news conference Ukraine intended to go to court to recover the money Ukraine would lose through its natural resources assets, which included businesses, 198 fields and 380 prospective ones.

"Ministry staff have assessed the market value of the resource base for Crimea. According to preliminary estimates, it was 127 billion hryvnias," he told a news conference.

The region is home to offshore drilling firm Chernomorneftegaz (Chornomornaftohaz) and Russia has put Crimea's oil reserves at 47 million tonnes and gas at 165.3 billion cubic metres, RIA news agency said.

Russia took over Crimea, home to Russia's Black Sea Fleet, shortly after Ukrainian protesters toppled pro-Moscow President Viktor Yanukovich in February.

Moscow said it was protecting its compatriots there from nationalists from western Ukraine, but the country's new leaders accuse Russia of waging a political campaign against them, using trade and the economy as weapons.

(Reporting by Natalia Zinets, writing by Elizabeth Piper, editing by Timothy Heritage)

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Comments (3)
Re: “Crimea cost Ukraine over $10 billion in lost natural resources”

Yet Moscow still expects Ukraine to pay its ‘debt’ for natural gas. Seems like Moscow owes Ukraine reparations, seems like Moscow should extradite Putin and Yanukovych to Kiev as war criminals, for that is what they truly are. Obama, Merkel, how can you stand there like deer in the headlights and let this go on?

Apr 07, 2014 1:11pm EDT  --  Report as abuse
JohnPombrio wrote:
Ukraine’s major gas fields that have been tapped are on the mainland. Crimea was in the process of starting to tap into offshore fields with western companies when Russia grabbed the peninsula. It will take years and a fortune of infrastructure expenditures to produce a profitable venture there. Gazprom will have its work cut out for it.

Apr 07, 2014 3:49pm EDT  --  Report as abuse
ArghONaught wrote:
Ukraine lost and Crimea/Russia gained. Zero sum. It is just whose bank account benefits. It is not like only Russia screws up the world. There is equal “credit” to go around – the differences are in presentation and methods, not so much ultimate outcomes. Jaded and cynical? Yes.

Apr 07, 2014 4:40pm EDT  --  Report as abuse
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