Russia, Ukraine situation stimulates U.S. energy support efforts

PDF versionPDF version

The Russia-Ukraine conflict has caused the U.S. Administration and lawmakers to step up energy support to Ukraine. On March 4, U.S. Secretary of State John Kerry announced $1 billion in aid to Ukraine, including energy subsidies, to ease transition of the newly created government. Lawmakers in both chambers have since proposed legislation on liquefied natural gas (LNG) exports in efforts to reduce Ukraine’s dependence on Russian energy.

The March spree of legislation involving LNG exports comes from both sides of the aisle. Senator Robert Menendez (D-NJ) introduced S. 2124, which would pledge U.S. support in helping diversify Ukraine’s energy economy. Senator Barrasso’s (R-WY) amendments to S. 2124 called for expediting LNG exports to North Atlantic Treaty Organization (NATO) and World Trade Organization (WTO) nations.

A barrage of distinct legislation coming from both sides of the aisle encourages similar action, including S. 2096, sponsored by Senator Mark Begich (D-AK), S. 2083, sponsored by Senator Mark Udall (D-CO), H.R. 4139, sponsored by Representative Michael Turner (R-OH) and H.R. 6, sponsored by Representative Cory Gardner (R-CO).

Alternatively, Senator Ed Markey’s (D-MA) bill, H.R. 1189, counters the pro-export legislation and would require each LNG export application to be approved by the Secretary of Energy. According to Jason Bordoff from the Columbia Center on Global Energy Policy, the U.S. is a few years from being able to use LNG exports as geopolitical leverage. Only six LNG exporting projects have received permits, and most are still in the stages of financing and building export infrastructure.

Sources: CNN; E&E News; Government Printing Office; The Guardian; NPR OnPoint