Roman Storozhev, CEO of the Association of Subsoil Users of Ukraine (ASUU): Collaboration That Evolved into Partnership

Andrii Kostrytsia and Roman Storozhev

Roman Storozhev is the founder of the “Gas Traders of Ukraine” Association. He has significant experience in the energy industry, having held management positions in companies such as Ukrnaftaprominvest, Ukrzakordongeologiya, NJSC Nadra Ukrayiny, and served as the head of the State Service of Geology and Subsoil of Ukraine.

He has over 20 years of experience in natural gas trading, 5 years in electricity trading, and more than 15 years of experience in the legal and auditing business, as well as geological exploration.

As the owner of gas trading companies in Ukraine and Europe, Roman is a reliable partner of the Energy Club. Within the training course “Distributed Generation: A Step Towards Ukraine’s Energy Independence,” he serves as a lecturer, covering the topic of the Ukrainian gas market’s operation and sharing his extensive experience with the audience.

Today, our conversation with Roman focuses on the collaboration with Energy Club, which has evolved into a partnership over time.

– How long have you been collaborating with Energy Club? What do you see as the benefits of membership in the community?

– Our two Associations – “Gas Traders of Ukraine” and “Subsoil Users of Ukraine” – laid the foundation for cooperation with Energy Club back in 2019. Memoranda on interaction and cooperation were signed.

We agreed on active joint work to address problematic issues in the natural gas market through public discussions and other events.

I emphasize that the natural gas market, like the energy market, was undergoing a transformation process: company unbundling, liberalization of all market processes. Therefore, open professional communication among market participants was crucial. And the professional platform of the Energy Club provided this.

In those market development conditions, the “Gas Traders of Ukraine” Association, together with Energy Club experts, were very active in developing expertise regarding the legislation of the reforming natural gas market.

– How relevant and effective are the events organized by Energy Club?

– For our Associations, cooperation with Energy Club has grown into a partnership for holding the annual gas forum, Ukrainian Gas Open. This year will mark the fifth Forum, bringing together key players in the fuel and energy complex and Energy Club member companies, as well as representatives of state institutions, regulatory bodies of the FEC sector, and representatives of the European Commission.

I recall how in 2020, market participants engaged in active discussions with the GTS Operator regarding the calculation of charges for imbalances in the gas market. At that time, the GTSOU took a non-public stance, accusing some participants of causing a sharp increase in imbalances. Thanks to Energy Club, this issue was brought into the public domain at the UkrainianGasOpen-2020 forum. We then discussed the financial discipline of gas market participants and the issue of debt creation related to imbalances with GTSOU representatives. Many such examples can be recalled.

Today, the gas market faces new challenges under the conditions of a full-scale war waged on our territory by Russian occupiers. We are raising issues concerning securing imported gas for Ukraine during the 2025-2026 heating season; seeking new possibilities for its delivery to Ukraine by expanding interconnectors with neighboring countries on the Western border; addressing the issue of price distortions between the commercial segment and the PSO (Public Service Obligation), and others.

– Can you provide examples where Energy Club helped resolve specific problems or settle important issues?

– One of the key tasks Energy Club sets for itself in cooperation with key market participants – members of the energy club – is to provide a professional assessment of the effectiveness of reforms in the fuel and energy complex and, through public discussions among market leaders, develop roadmaps for resolving current issues. But the ultimate goal of all our meetings and decisions is to develop mechanisms for consumer protection alongside increasing market liquidity and the number of its participants.

However, the effectiveness of reforms and the results depend on the state institutions implementing the reforms.

One striking example of issue resolution was the high-quality expertise and interaction with responsible institutions facilitated by Energy Club regarding the detailing and justification of the methodology for determining the cost of balancing charges. Appeals to the relevant Ministry and the international Energy Community called for the methodology for calculating “neutrality” to be fair for all transport service customers.

– What current challenges require discussion on the Energy Club platform?

– Today, the key challenge is the war waged by the Russian aggressor against our people, our Ukraine. Therefore, all reform processes and market liberalization are “frozen” under martial law. Of course, we continue to work with the challenges brought by the war to our territory. We react quickly to the threats posed by the present day. We believe in the revival of all the groundwork laid in the industry, which is necessary for its development and achieving the strategic goals of the initiated reforms.

Today, the crucial question is: how, under constant shelling of gas infrastructure, can we maintain natural gas production at volumes that will ensure the stable passage of the upcoming winter period? The issue of pricing policy for natural gas and the market monopolization by Naftogaz is important. Separately, we can highlight the issue of the transit halt, which caused changes in the physical parameters of natural gas. Therefore, changing the gas standards in the system is relevant today, as they differ from those during transit.

– What kind of training do energy market participants need? What could Energy Club organize in the future?

– Perhaps these are issues related to price formation and establishing services for consumers. When the return to the initiated reforms occurs, the question of consumer readiness to switch suppliers and understand pricing will arise. We must always remember that the beneficiary of market liberalization processes is the consumer!