Ukraine Proposes Lend-Lease Deal With US for LNG Supplies, Reports Suggest

MOSCOW (Sputnik) - Ukraine's energy sector officials have proposed signing an energy "lend-lease agreement" with the United States for up to 6 billion cubic meters liquefied natural gas (LNG) supplies to the country, US newspaper Foreign Policy reported on Wednesday.

On 9 May, US President Joe Biden signed into law legislation allowing lend-lease deals for military equipment to Ukraine and other Eastern European countries to enhance weapons transfers amid Russia's special military operation.

The deal on LNG supplies became just one of numerous proposals made by Kiev to Washington with a view to ensuring energy security of Ukraine, according to the newspaper.

Given that Kiev has no LNG terminals of its own, the gas will first be delivered to Europe and then pumped via a pipeline to the country. Kiev will settle its accounts with Washington once domestic gas production is increased, Foreign Policy reported.

Sovcomflot LNG ship Christophe de Margerie and Russian icebreaker 50 Let Pobedy traverse the Northern Sea Route in February 2021, the first commercial cargo vessel to do so

© Photo : Sovcomflot

Yuriy Vitrenko, CEO of Ukraine's largest oil and gas company Naftogaz, said that the country needs about $8 billion for gas import before the winter. He held talks with the Biden administration last week explaining the proposed LNG measure.

"They were surprised to hear such an idea, but it was well received", Vitrenko was quoted as saying by Foreign Policy.

Other measures suggested by Kiev reportedly include "international financing" to purchase gas from Middle East and North Africa, designing alternative energy supply routes and obtaining funds from the US International Development Finance Corporation.

Kiev also hopes the allies will assist in developing domestic gas deposits by investing in horizontal drilling projects, Foreign Policy reported.

On 24 February, Russia launched a military operation in Ukraine after the breakaway republics of Donetsk and Luhansk appealed for help. The US and its Western allies have since been pressuring Moscow with sanctions, including in the area of energy supplies, causing prices to soar worldwide.