• Ukraine was the seventh-largest energy consumer in Europe and Eurasia in 2010. More than half of the country's primary energy supply comes from its uranium and coal resources, although natural gas also plays an important role in its energy mix.
• In 2010, Ukraine generated a total of 176 billion kilowatthours (BkWh) of electricity and consumed approximately 150 BkWh. The country is heavily dependent on nuclear energy—its fifteen reactors generate roughly half of the total electric power supply. The remainder of the electric power is generated with conventional thermal sources (45 percent), hydropower (7 percent), with marginal volumes contributed by wind generation.
• Ukraine consumed approximately 2.3 trillion cubic feet (Tcf) of natural gas in 2011, with domestic production accounting for approximately 30 percent of the total at 700 billion cubic feet (Bcf). The remainder of supply is made up by Russian natural gas, imported through the Bratstvo (Brotherhood) and Soyuz pipelines.
• Its geographic position and proximity to Russia explain Ukraine's importance as a natural gas transit country, through which volumes flow to Austria, Bosnia-Herzegovina, Bulgaria, Croatia, Czech Republic, Germany, Greece, Hungary, Moldova, Poland, Romania, Slovakia, and Turkey. In the past, disputes between Russia and Ukraine over natural gas supplies, prices, and debts have resulted in interruptions to Russia's natural gas exports through Ukraine, with the latest one occurring in 2009.
• Recent discoveries of shale gas deposits in Ukraine provide the country with a possible means to diversify its gas supplies away from Russia. In January 2013, Shell agreed to explore an area which the government estimates holds about 4 Tcf of shale natural gas in reserves. Current plans include development of shale gas resources for domestic consumption and exports to Western Europe by 2020.
• Only a relatively small portion of the country's total consumption is accounted for by petroleum and other liquid fuels. In 2011, Ukraine consumed 300,000 barrels per day (bbl/d) of liquid fuels, but produced only 82,000 bbl/d. The remainder was imported mostly from Russia, with smaller volumes originating in Kazakhstan and Azerbaijan.

Analysis Last Updated: March 2013