The present report aims at understanding the challenges and opportunities of the Ukrainian natural gas market. It considers its natural resources, infrastructure, industry organisation, market regulation, international relationships, and consumption patterns. The report broadly describes the current situation and key market data. However, its focus is on mid-term evolution, with a view to understanding how the market could look around 2020, when the current transition should be relatively advanced. The market is assessed against European Union benchmarks, in particular the Gas Target Model (ACER, 2015), which envisages the characteristics of a functioning gas market pursuant to the EU regulatory framework, and defines metrics for assessment of individual (national or cross-border) markets. The assessment is not limited to the metrics, but also illustrates and discusses other key features that the current European debates highlight as key factors of a functioning market, and which can lead to the establishment of a liquid and competitive hub for gas trading.
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