Per our previous post on this topic, the Ukranian shelf may contain more than 70 Tcf of natural gas, most of which was seized by Russia along with Crimea. This illegal seizure of resources in 2014 should be considered as part of any long-term settlement and before easing sanctions on Russia.
For those who want to learn more, this 2018 article by Ukranian journalist Kostiantyn Yanchenko has proven to be particularly insightful. A few key points:
…when in 2014, two-thirds of the former Ukrainian water area passed to Russia with the occupation of Crimea, only a few experts assumed that the struggle for control over energy resources might have been among the main reasons for annexation. Against the background of Moscow’s famous explanation “Why Crimea? Be[cause]Kosovo!”, this version looked unconvincing, but there are many reasons to give it a second glance.
The naysayers often argue that Russia doesn’t have the technology to extract gas on the deep-water shelf. This is true, at least now. However, as researchers note, Russia’s short-term objective was not to benefit from the Black Sea gas but to block its production by the Western companies and hence secure its own positions in the European market.
Furthermore, Russia largely relies on an energy leverage in international relations. Thus, “The Energy Strategy of Russian Federation Until 2020” starts with the statement: “Russia has significant reserves of energy resources and a powerful fuel and energy complex, which is the basis for economic development, an instrument for domestic and foreign policy.”
Bud's Offshore Energy (BOE) 