Royal Dutch Shell PLC, Ukraine To Sign $10 Billion Shale Gas Deal-DJ

Dow Jones reported that Ukraine and Royal Dutch Shell PLC will sign a landmark multibillion-dollar agreement Thursday to develop unconventional gas resources, as the former Soviet republic tries to reduce its dependence on Russian gas supplies. The $10-billion production sharing agreement will be signed at the World Economic Forum in Davos by Ukrainian President Viktor Yanukovych and Shell Chief Executive Peter Voser. Ukraine is trying to wean itself away from costly Russian gas, as Moscow for months has refused its pleas for a discount. Russia has demanded closer economic and political ties in return for lower prices. Ukraine has Europe's fourth-largest shale gas reserves of about 42 trillion cubic feet (1.2 trillion cubic meters), according to the U.S. Energy Information Administration.