The development of controlled nuclear fusion is gradually moving from individual laboratory records to the creation of full-scale magnets, vacuum chambers, cooling systems, and experimental facilities designed to test the possibility of stable energy production.
The most notable achievement of recent months belongs to China. In June 2026, Chinese specialists completed the manufacture and testing of the world’s largest superconducting magnet for a future fusion reactor. At the same time, the United States is advancing laser fusion and private projects involving compact facilities, Russia continues experiments on the T-15MD tokamak and supplies equipment for the international ITER reactor, while European and Asian research centers are working on long-duration plasma confinement and materials for future power plants.
Despite the acceleration of research, no country has yet built a fusion facility that continuously generates more electricity than its entire equipment complex consumes. Most announced dates for the launch of the first power plants in the 2030s remain targets rather than guaranteed deadlines.
How Nuclear Fusion Energy Is Produced
Nuclear fusion is the process that powers the Sun and other stars. During the reaction, light atomic nuclei combine into a heavier nucleus, while part of their mass is converted into energy.
On Earth, the reaction between two hydrogen isotopes—deuterium and tritium—is considered the most promising. When they combine, a helium nucleus and a fast neutron are produced. Approximately 80% of the released energy is carried away by the neutron, which is then expected to heat the blanket surrounding the reactor. The resulting heat is intended to produce steam and drive a conventional turbine, as at a thermal or nuclear power plant.
To initiate the reaction, the fuel must be converted into plasma and heated to approximately 150 million degrees Celsius—about ten times the temperature at the center of the Sun. On the Sun, matter is compressed by immense gravity. In a terrestrial facility, gravity must be replaced by a magnetic field or an extremely powerful laser pulse.
Sustainable fusion requires three conditions to be met simultaneously: a high temperature must be reached, sufficient particle density must be created, and the plasma must be confined for long enough. It is the combination of these parameters, rather than a single temperature record, that determines the actual progress of a facility.
Two principal approaches are currently used
With magnetic confinement, plasma is held inside a ring-shaped vacuum chamber. Powerful superconducting magnets prevent it from coming into contact with the walls. The most common facility of this type is the tokamak. An alternative is the stellarator, which has a more complex magnetic-field configuration but is potentially better suited to continuous operation.
With inertial fusion, a small fuel capsule is simultaneously irradiated by lasers. The capsule’s outer layer evaporates, the fuel is rapidly compressed, and for a brief period it reaches the conditions under which a fusion reaction begins.
China Built the Largest Superconducting Magnet
In June 2026, the Institute of Plasma Physics at the Chinese Academy of Sciences announced the successful completion of tests on a D-shaped toroidal-field magnet for future fusion facilities.
The magnet is 21 meters long, 12 meters wide, and 3.3 meters high, and weighs 582 tonnes. According to its developers, its volume is 1.3 times greater than that of a comparable component of the international ITER reactor, while its stored magnetic energy is three times greater.
Toroidal magnets generate the primary field around a tokamak’s vacuum chamber. The stronger and more stable the field, the higher the plasma pressure and temperature that can potentially be maintained inside the facility.
The creation of such a magnet means that China has mastered the production of large-scale superconducting coils, special steel, low-temperature insulation, protection systems, and ultra-low-resistance joints. However, a magnet alone is not a reactor. An energy-producing facility will require a complete set of coils, a vacuum chamber, a cryogenic system, plasma heating, neutron protection, and equipment for tritium breeding.
China is simultaneously developing several interconnected projects. In January 2025, the EAST tokamak maintained plasma in high-confinement mode for 1,066 seconds, significantly exceeding the previous result of 403 seconds. The experiment did not involve industrial energy production, but it demonstrated the possibility of prolonged operation of a superconducting tokamak.
The next stage is expected to be the BEST facility, which is under construction in Hefei. It is scheduled for completion by the end of 2027. Unlike EAST, BEST is being designed for experiments with burning deuterium-tritium plasma and is expected to produce between 20 and 200 MW of fusion power. Chinese developers intend to demonstrate a positive energy balance and the possibility of electricity generation by approximately 2030. For now, these are stated project objectives that must be confirmed experimentally.
The United States Achieved Repeatable Laser Ignition
The main government-funded achievement of the United States remains the work of the National Ignition Facility, or NIF, at Lawrence Livermore National Laboratory.
In December 2022, NIF obtained more energy from a fusion reaction for the first time than the lasers directly delivered to the fuel target. Ignition was subsequently repeated several times.
In an April 2025 experiment, the lasers delivered 2.08 megajoules to the capsule, while the reaction produced a record 8.6 megajoules of fusion energy. The target-level gain exceeded four, and the experiment became the eighth successful ignition at NIF. The results were presented in detail by the laboratory in April 2026.
However, this does not yet mean that NIF has become a power plant with a positive energy balance. The laser complex requires significantly more electricity to operate than reaches the fuel capsule. In addition, NIF produces individual pulses and was created primarily for scientific and defense research, whereas an industrial power plant would have to repeat shots many times per second, manufacture high-precision capsules inexpensively, and efficiently convert heat into electricity.
The private sector is developing in parallel in the United States. The Department of Energy reported that total private investment in US fusion projects had exceeded $10 billion. The government roadmap approved on June 9, 2026, provides for support for experimental facilities and an attempt to bring commercial fusion generation to the market in the mid-2030s. At the same time, the department acknowledges that implementation of the program depends on future funding and public partnerships.
Commonwealth Fusion Systems is building the compact SPARC tokamak in Massachusetts, using magnets made from high-temperature superconductors. In April 2026, the company estimated that the project was approximately 75% complete. SPARC will not be a full-scale power plant: its purpose is to demonstrate that the energy produced by reactions within the plasma can exceed the energy directly expended on heating it.
Another US developer, Helion, uses a pulsed magnetic system that directly converts plasma expansion into electricity. In February 2026, the company stated that its Polaris facility had conducted a reaction using deuterium and tritium and heated the plasma to 150 million degrees. These figures were published by the company itself and are not yet equivalent to demonstrating a positive energy balance for the entire facility.
In June, Helion obtained licenses in Washington State to use radioactive materials and release emissions for the Orion complex under construction. The regulatory approval allows the company to continue developing the facility, but it does not confirm that the announced energy characteristics of the future installation have already been achieved.
ITER Is Assembling the Largest International Tokamak
The international ITER reactor is under construction in southern France with the participation of the European Union, China, India, Japan, South Korea, Russia, and the United States.
ITER is expected to produce 500 MW of fusion power in the plasma with 50 MW of external heating, thereby achieving a gain factor of Q=10. However, the facility will not supply electricity to the grid. Its purpose is to demonstrate the sustained operation of burning deuterium-tritium plasma and test the technologies required for subsequent demonstration power plants.
In June 2026, assembly of the central solenoid, consisting of six modules, was completed at the site. In July, the sixth sector of the vacuum vessel was installed in the tokamak pit, after which approximately two-thirds of the future reactor ring had been assembled.
The project is significantly behind its original schedule. According to the updated plan, research operations are expected to begin in 2034, operation at full magnetic power in 2036, and the first deuterium-tritium experiments in 2039.
ITER’s delays demonstrate the scale of the engineering challenge. Even with international funding, the manufacture of unique magnets, vacuum modules, and cooling systems takes decades.
Russia Retains Access to ITER Despite the War and Sanctions Risks
The Soviet Union played a significant role in the development of controlled nuclear fusion research. The first tokamak was created at the Kurchatov Institute in 1954, and the term itself later emerged from the phrase “toroidal chamber with magnetic coils.”
The principal operational Russian experimental facility in this field is the T-15MD tokamak, commissioned in 2021. It is used to study stable plasma-confinement regimes, plasma interaction with reactor walls, divertor operation, auxiliary heating, and control of the plasma column. The results are intended to be used in developing a fusion neutron source and a hybrid reactor combining fusion and fission technologies.
Thus, the Russian program is currently focused not on building a commercial fusion power plant but on conducting physics experiments, preserving its scientific expertise, developing reactor technologies, and creating hybrid facilities. At the same time, the operation of T-15MD allows Russian specialists to participate in research related to the International Thermonuclear Experimental Reactor, ITER.
Russia remains one of ITER’s seven members. Its share of the initially agreed construction cost is approximately 9.1%. A significant part of its contribution is provided in kind, in the form of equipment and technologies. Russian organizations participate in supplying superconducting conductors, vacuum-vessel and divertor components, gyrotrons for plasma heating, diagnostic components, and power-supply equipment.
Following the beginning of Russia’s full-scale war against Ukraine, the question of Moscow’s continued participation in the international project acquired not only a political but also an ethical and security dimension. However, the current ITER Agreement does not provide a mechanism for the compulsory exclusion of a participant or the suspension of its rights. It permits only a state’s voluntary withdrawal from the project, the European Commission noted. At the same time, Russia did not perform the functions of the rotating chair of the ITER Council for two years, while bilateral contacts with it were reduced to a minimum, according to Brussels. The European Commission also stated that the reactor’s further development and operation would not depend on Russian intellectual property rights. In this situation, it is advisable for Ukraine, within the framework of the existing EU sanctions mechanisms, to strengthen monitoring and auditing of supplies involving sanctioned organizations from the Russian Federation.
Germany Is Testing an Alternative to Tokamaks
Germany is developing Wendelstein 7-X, the world’s largest stellarator. Unlike a tokamak, a stellarator creates the required magnetic-field configuration primarily through external coils and does not depend on a strong electric current within the plasma.
This makes the magnets more difficult to manufacture, but potentially allows the facility to operate continuously and reduces the risk of certain types of plasma disruptions.
In May 2025, Wendelstein 7-X set a record for the triple product—the combination of temperature, density, and confinement time—for long pulses lasting more than 30 seconds. In one experiment, the high value was maintained for approximately 43 seconds.
Following modernization, the facility is expected to resume experiments in August 2026. Germany has also begun developing 2 MW gyrotrons for more efficient microwave plasma heating.
The United Kingdom Is Preparing the STEP Prototype
Following the completion of experiments on the European JET tokamak, the United Kingdom focused on its national STEP program.
A prototype spherical tokamak is planned for construction at the site of the former West Burton coal-fired power station. The project is intended to combine plasma, magnets, tritium production, heat removal, equipment maintenance, and electricity generation within a single facility.
In April 2026, the UK Atomic Energy Authority presented its roadmap for 2026–2030. At this stage, the country is establishing industrial cooperation, developing reactor materials, and selecting partners to implement STEP. Before electricity can actually be generated, the project must still undergo design, licensing, and construction.
Japan and the European Union Are Preparing a New Stage of JT-60SA
Japan, jointly with the European Union, operates JT-60SA, officially recognized as the world’s largest operational tokamak. The facility is intended to help develop operating regimes for ITER and future demonstration reactors.
After the first stage of experiments, the tokamak was upgraded with new heating and diagnostic systems and divertor components. The second experimental phase, OP2, began in April 2026.
JT-60SA will not use deuterium-tritium fuel and is not intended to produce electricity. Its main task is to learn how to create stable plasma with the parameters required for future reactors.
South Korea Focuses on Long-Duration Plasma and Tungsten Walls
The South Korean KSTAR tokamak is used to study prolonged high-temperature regimes and control plasma instabilities.
South Korea is gradually replacing carbon components on the facility’s inner surface with tungsten ones. Tungsten is considered one of the principal materials for the divertors of future reactors because it withstands high temperatures, although its entry into the plasma can sharply degrade plasma performance.
In 2025, the Korea Institute of Fusion Energy reached an agreement with France’s CEA research center to conduct joint experiments on the KSTAR and WEST tokamaks under tungsten-wall conditions. This area of research is intended to help solve one of the principal problems facing future power plants: removing heat and particles from the plasma without destroying the equipment.
Why Fusion Energy Is Important
The principal advantage of fusion is the enormous energy density of its fuel. Deuterium is found in ordinary water, while tritium is expected to be produced directly inside the reactor through the interaction of neutrons with lithium.
According to ITER estimates, a power plant with a capacity of approximately 1 GW would consume about 250 kg of deuterium and tritium annually, whereas a coal-fired power plant of comparable capacity requires millions of tonnes of fuel.
The reaction itself does not produce carbon dioxide. Its main product is helium. A fusion facility also does not sustain a self-accelerating chain reaction: if magnetic confinement or the fuel supply is disrupted, the plasma rapidly cools and the reaction stops.
The amount of fuel inside the chamber at any given moment is extremely small, making an accident similar to the runaway of a conventional nuclear reactor physically impossible.
At the same time, it would be incorrect to describe fusion energy as entirely waste-free. Fast neutrons activate the chamber materials, meaning that certain metal components will become radioactive and require special handling. However, developers expect to use materials whose radioactivity declines considerably faster than that of some waste from conventional fission reactors.
If the technology proves economically viable, fusion power plants could provide stable, low-carbon generation regardless of weather conditions. This would allow them to complement solar and wind power plants, reduce the use of gas and coal, and produce energy for industry, hydrogen plants, water desalination, and large data centers.
What Obstacles Still Have to Be Overcome
The first problem remains the energy balance. Researchers distinguish between the energy released inside the plasma or target and the balance of the entire facility. A positive result at the fuel-capsule level, as at NIF, does not mean that the laboratory generated more electricity than it consumed.
A future power plant must cover the electricity required by magnets, cryogenic facilities, pumps, heaters, lasers, purification systems, and fuel-production systems. The resulting heat must then be converted into electricity, with a sufficient amount remaining for sale to the grid.
The second obstacle is operating duration. Many facilities can create extremely hot plasma for seconds or minutes, but a power plant must operate for months with high availability and minimal interruptions.
The third problem is neutron damage to materials. Neutrons from the fusion reaction displace atoms from the crystal structure of metals, make them brittle, and induce radioactivity. The divertor, toward which the heat and reaction waste are directed, is subjected to particularly high loads.
The fourth challenge concerns tritium. Its natural reserves are extremely limited. A future facility must produce at least as much tritium as it consumes, extract it from the lithium blanket, and return it to the plasma. ITER will be the first large facility to test various tritium-breeding modules, but a complete closed fuel cycle has not yet been demonstrated anywhere.
The fifth problem is cost. Superconducting materials, cryogenic systems, complex robotic equipment, and neutron-resistant alloys remain expensive. Even a physically functional reactor will not become a mass source of energy if the cost of its construction, repair, and fuel exceeds that of the alternatives.
When the First Power Plant May Appear
China intends to demonstrate energy production at BEST by approximately 2030. Several US companies cite the early 2030s. The US Department of Energy is targeting the middle of the next decade. The United Kingdom and European programs envisage a longer transition to prototypes and industrial reactors.
These timelines should be treated cautiously. China’s BEST, the US SPARC and Polaris projects, the UK’s STEP, and the international ITER project use different technologies and define success differently. Some are expected to demonstrate a positive energy balance in the plasma, others to produce an electrical pulse, and still others to demonstrate the complete operating cycle of a power plant.
The principal change in recent years has not been the resolution of every physics problem, but the transition to an engineering competition. Countries and private companies are already building large magnets, reactor buildings, vacuum chambers, and licensable sites.
Chinese superconducting magnets confirm that equipment on the scale of a future reactor can be manufactured. US laser experiments have demonstrated the repeatability of target-level ignition. Germany has brought stellarators closer to long-duration operation, while ITER is combining the technologies of the leading scientific powers in the world’s largest magnetic-confinement facility.
The next decisive stage will come when one of the programs does more than simply create hot plasma and simultaneously confirms sustained operation, fuel breeding, material durability, and a positive energy balance for the entire power plant. Only then will nuclear fusion be able to move from the category of promising scientific projects into a real energy industry.
Ukraine Studies Plasma and Materials for Future Reactors
Ukraine also participates in international controlled nuclear fusion research, although its program is considerably smaller than those of China, the United States, or Europe and does not envisage the construction of its own fusion power plant.
Ukraine’s principal center is the Institute of Plasma Physics at the National Science Center “Kharkiv Institute of Physics and Technology.” It is part of the European EUROfusion consortium and coordinates a Ukrainian research group comprising six scientific organizations. The institute employs approximately 135 researchers, engineers, technical specialists, and postgraduate students.
Ukrainian scientists operate the Uragan-2M and Uragan-3M stellarators. Unlike the more widespread tokamak, a stellarator confines plasma using a complex magnetic-field configuration and is potentially better suited to prolonged continuous operation. Uragan-2M supplies experimental data to the EUROfusion program.
Another important area concerns the interaction of hot plasma with reactor walls. The QSPA Kh-50 and QSPA-M facilities in Kharkiv produce powerful plasma streams that simulate brief extreme loads inside future fusion facilities.
QSPA Kh-50 is one of the most powerful facilities of its type. Researchers use it to test how tungsten, special alloys, and protective coatings withstand plasma disruptions and thermal pulses. Solving this problem is critically important because the materials of the reactor’s inner chamber must withstand high temperatures and intense neutron irradiation.
Ukraine has been associated with the Euratom Research and Training Programme since 2021. Ukrainian organizations can participate in its competitions and projects under the same conditions as institutions from EU member states. Under the previous Euratom program for 2014–2020, Ukrainian participants received approximately EUR4.9 million for nuclear fission and fusion projects.
Following the beginning of the full-scale war, EUROfusion allocated EUR2.5 million to support the Kharkiv Institute of Physics and Technology and affiliated Ukrainian organizations. The funds were intended for equipment, the preservation of scientific teams, and grants for young researchers and engineers.
At the same time, Ukraine is not an independent member of ITER. The parties to the project are the European Union, China, India, Japan, South Korea, Russia, and the United States. Ukraine therefore does not have a separate national quota for supplying equipment or financing the reactor, unlike the states participating in the agreement.
JSC “Ukrenergomashiny” (Kharkiv) ended the January–June 2026 period with a net profit of 6.46 million UAH, while for the same period in 2025, this figure stood at 0.5 million UAH.
According to the company’s financial report, published in the disclosure system of the National Securities and Stock Market Commission (NSSMC), net sales revenue increased by 35.5% to 635.1 million UAH.
The plant generated 0.1 million UAH in operating profit (compared to 13.8 million UAH last year), and gross profit increased by 68.7% to 237.4 million UAH.
Retained earnings as of the end of the first half of the year amounted to 2.669 billion UAH.
As previously reported, in the first quarter of this year, “Ukrenergomashiny” reported a net profit of 0.74 million UAH (compared to 0.25 million UAH for the same period in 2025), driven by a 27.4% increase in net revenue to 287.1 million UAH.
According to the report, total exports in January–June amounted to 13.8 million UAH (4.5% of sales volume).
The main foreign customers were the “Eurasian Energy Corporation” (Kazakhstan) and “Tajik SGEM” (Tajikistan), while the main Ukrainian customers were “NAEK Energoatom” and “Ukrhydroenergo”; SNVO “Impuls”; “Ukrzaliznytsia,” “Mykolaiv Diesel Locomotive Repair Plant,” “Kryukiv Railway Car Building Works,” “DTRZ,” “TATRA-YUG,” “ArcelorMittal Kryvyi Rih,” and “NVK ‘ISKRA.’”
The company identifies its main competitors as the foreign firms Andritz (Austria), Voith (Germany), General Electric (U.S.), and Bharat Heavy Electric Ltd. (India).
“Ukrenergomashiny” notes that the total planned capital investment for 2026 amounts to 60 million UAH, and the actual disbursement of funds for the second quarter was 2.54 million UAH, including 0.53 million UAH for the purchase of new equipment and 0.7 million UAH for installation work and equipment modernization. Funding will be provided from the company’s own resources.
JSC “Ukrenergomashiny,” more than 75.22% of whose shares are owned by the state, is Ukraine’s sole manufacturer of turbine equipment for hydroelectric, thermal, and nuclear power plants. It also manufactures electric motors for rail and urban transit.
The average number of full-time employees as of July 1 of this year was 2,687.
In 2025, the company increased its net revenue by nearly 33% compared to 2024—to 1.06 billion UAH—and its net profit by a factor of 3.5, to 3.07 million UAH.
According to The Serbian Economist, on July 28, the Romanian state-owned company Nuclearelectrica conducted a controlled shutdown of Power Unit No. 1 at the Cernavodă Nuclear Power Plant due to abnormally low water levels in the Danube caused by a prolonged drought.
The decision was made in accordance with safety procedures to protect equipment related to the plant’s cooling system. The unit is scheduled to be reconnected to the national power grid once hydrological conditions improve. If water levels continue to drop, a shutdown of Unit No. 2 may be considered.
In the Romanian section of the Danube, the lowest water level in the last 30 years was recorded at the end of July. The drought has already led to restrictions on irrigation, the suspension of some ferry services, and the grounding of grain barges.
Low water levels have also disrupted passenger shipping. Near the Romanian town of Salca, a Swiss-flagged passenger ship running from Drobeta-Turnu Severin to Vidin, Bulgaria, ran aground. There were 186 passengers and 52 crew members on board. Several attempts to refloat the vessel were unsuccessful.
The problems have also spread to the international river cruise market. Several cruise ships were detained north of Budapest, and tourist cruises on certain sections of the Danube were suspended. The Hungarian company MAHART-PassNave reported an 18% drop in bookings in July and suspended sightseeing routes north of Budapest.
Cruise operator Avalon Waterways canceled several Danube cruises, including select sailings on the “Danube Dreams” and “Danube from Romania to Germany” itineraries.
The shallowing of the Danube has affected more than just Romania and Hungary. In Serbia, due to reduced inflow, production at the largest hydroelectric power plant, “Džerdap-1,” has fallen to 5,000 MWh of electricity per day—or one-third of its usual volume. In certain sections, cargo ships and fuel barges are being loaded to only 30–40% of their usual capacity.
Thus, the prolonged drought has simultaneously created risks for the energy sector, freight transport, and the tourism industry in the countries of the Danube region. The resumption of full-scale operations at nuclear power plants, as well as river cruises and cargo navigation, will depend on precipitation in the upper part of the basin and a steady recovery of water levels.
Iraq has estimated the total value of contracts and agreements concluded with American energy companies during Prime Minister Ali al-Zaidi’s July visit to the United States at approximately $200 billion.
Iraqi Oil Minister Basim Mohammed Khudair announced this on July 21. According to him, the projects are expected to increase the country’s production capacity, expand associated gas processing and bring American technologies into the oil and gas industry. The minister estimated Iraq’s current production capacity at 4.8 million barrels of oil per day.
The announced package includes seven key arrangements related to field development, oil and gas asset management, energy infrastructure modernisation and the search for new export routes.
At the same time, the $200 billion estimate does not yet mean that the entire amount has already been formalised as binding capital investment. The package includes contracts, framework agreements, memoranda and preliminary arrangements. The final volume of investment will depend on the results of technical studies, commercial negotiations, the agreement of financing terms and the receipt of regulatory approvals.
Chevron expands its presence in Iraq
The American company Chevron has become one of the central participants in the new energy cooperation.
The company is negotiating its participation in the operation of the West Qurna-2 field, one of Iraq’s largest oil assets, as well as the development of the Nasiriyah field. The parties previously signed preliminary documents concerning Nasiriyah, the Balad field and several exploration blocks in Dhi Qar Province.
During a meeting with Chevron’s management, the Iraqi prime minister called on the company to accelerate investment in oil and gas production and the construction of oil refineries, petrochemical plants, pipelines and storage facilities.
The Iraqi side stated that it was prepared to allocate land plots and expedite administrative approvals for major energy projects. Chevron, in turn, expressed interest in fields in the south of the country and in developing infrastructure for the storage and export of raw materials.
The agreements concerning West Qurna-2 and Nasiriyah remain predominantly preliminary. Before final contracts are concluded, Chevron must examine the projects’ geological, technical and commercial data.
Halliburton to manage the Bin Umar and Sindbad fields
The American oilfield services company Halliburton has received a contract from the state-owned Basra Oil Company for the comprehensive management of the development of the Bin Umar and Sindbad oil and gas fields in southern Iraq.
The contract provides for integrated field management services, as well as support for the design, procurement and construction of the necessary infrastructure.
The involvement of Halliburton is expected to help Iraq increase oil and gas recovery from existing assets, introduce modern reservoir management methods and reduce technological losses.
Another agreement has been concluded with the American company HKN Energy for the development of the Himrin field in the north of the country. The Iraqi government approved the project as part of a broader programme to attract American companies to the oil and gas and electric power sectors.
Iraq seeks alternative oil export routes
One of Baghdad’s strategic objectives is to reduce its dependence on routes through the Persian Gulf and the Strait of Hormuz.
Recent regional crises have demonstrated the vulnerability of Iraq, most of whose oil exports pass through southern terminals. Shipping restrictions and export disruptions have a direct impact on production, budget revenues and the state’s ability to finance infrastructure projects.
Iraq is considering expanding supplies through the Turkish port of Ceyhan and creating a route to the Mediterranean Sea through Syria. The Iraqi and Syrian sides previously discussed transporting oil to the port of Baniyas, including the possibility of restoring existing infrastructure or constructing a new pipeline system.
Chevron is also exploring the possibility of participating in export pipeline and storage projects. If implemented, they would connect the oil fields of southern and northern Iraq with alternative maritime terminals and reduce the country’s dependence on the Strait of Hormuz.
However, such projects will require interstate agreements, large-scale investment and security guarantees. The restoration of pipelines through Syria is complicated by the condition of the infrastructure and the need to ensure the protection of the route along its entire length.
Baghdad turns towards American capital
The current arrangements reflect a broader shift in Iraq’s energy policy towards the United States.
In recent years, Chinese companies have secured a significant share of the country’s new oil and gas projects. Major assets have also been managed by Russian and European operators.
Ali al-Zaidi’s government has announced its intention to give priority to reputable American companies in the energy, telecommunications and technology sectors. To facilitate their entry into the market, the authorities have begun reviewing certain administrative requirements and strengthening the security of oil facilities.
For Iraq, such cooperation is expected to provide access to investment, technologies, oilfield services equipment and political support from Washington. For American companies, the country is attractive because of its large oil reserves, underdeveloped gas sector and need to modernise its infrastructure.
Production growth constrained by OPEC+ agreements
Iraq intends to increase its oil production capacity, but actual production volumes depend on more than investment alone.
The country participates in OPEC+ agreements and is required to comply with the established restrictions. In July, the group’s countries again reaffirmed their commitment to the current arrangements, including the need to compensate for previously exceeding production quotas.
The Iraqi Ministry of Oil previously announced plans to increase production capacity to more than 6 million barrels per day by 2028–2029. Achieving this goal will require the development of new fields, the rehabilitation of existing assets, the expansion of export infrastructure and agreement on a higher quota within OPEC+.
The development of the gas industry remains a separate priority. Iraq is seeking to expand the processing of associated gas, which continues to be flared at fields, and reduce the electric power sector’s dependence on imported fuel.
The authorities plan to increase the utilisation of produced gas to the highest possible level and virtually eliminate its flaring by the end of the decade.
Implementation of agreements will take several years
The package of projects with American companies could become one of the largest investment shifts in the history of Iraq’s oil and gas industry.
However, a significant share of the arrangements remains at a preliminary stage. To proceed to full implementation, the parties must determine the commercial terms, allocation of risks, investment payback periods and security guarantees.
OPEC+ quotas, bureaucratic procedures, the condition of pipeline infrastructure and regional instability remain additional constraints.
If even part of the announced projects is implemented, Iraq will be able to increase oil and gas production, expand processing, reduce its dependence on a single export route and strengthen its position as one of the largest energy producers in the Middle East.
ENERGY, INVESTMENT, IRAQ, OIL, USA
In 2027, Ukraine may begin the process of gradually raising electricity and gas rates for households after developing appropriate protection programs.
This is stated in the updated memorandum on Ukraine’s economic and financial policies under the Extended Fund Facility (EFF) program with the International Monetary Fund (IMF), following the results of its first review.
“The government has committed to conducting an assessment by the end of February 2027 of utility support programs aimed at protecting vulnerable households. Once appropriate protection programs have been developed, household tariffs should be gradually increased—this process can begin in 2027,” the document’s authors state.
According to the text of the memorandum, the goal of this process is to meet the needs for recovery and debt reduction in the energy sector, while full price liberalization will eventually be necessary to attract post-war investment.
“The Ukrainian government (IF-U) emphasized that tariff increases should occur only after an assessment and, if necessary, reform of existing social protection systems,” the authors of the document noted, among other things.
It is noted that large-scale quasi-fiscal measures in the energy sector and the existing tariff structure pose serious risks to investment, reconstruction, and the development of a stable energy supply and power grid.
According to preliminary expert estimates—which will be refined during future technical assistance—fixed energy tariffs that are below market rates—in particular, due to moratoriums imposed since the start of the war—cost at least 2.2% of GDP annually in the form of off-target subsidies resulting from the quasi-fiscal activities of state-owned energy enterprises, while targeted transfers for public utilities account for about 0.6% of GDP in the budget.
“Significant fiscal risks arise from fixed utility rates for households, which currently amount to about 55% of comparable supply contracts,” the document states.
As a result, the energy sector is increasingly relying on in-kind contributions, grants, and preferential financing to meet its needs for repairs and imports. For example, Naftogaz took on additional debt to finance repairs and imports, causing its debt to rise by 63% year-over-year in 2025. The government is currently seeking donor support to ensure the timely completion of necessary repair work and the implementation of plans to strengthen resilience, the authors of the document noted.
European Union countries imported a record amount of liquefied natural gas from Russia’s Yamal LNG project in the first half of 2026, despite the gradual implementation of a ban on Russian gas supplies, the Financial Times reported, citing data from the analytics firm Kpler and the environmental organization Urgewald.
According to the publication, European countries received approximately 9.9 million metric tons of LNG from “Yamal LNG” between January and June, which is about 18% more than during the same period in 2025. This marks the highest half-year figure since exports from the project began in 2017.
Reuters cites slightly different operational data: according to Kpler, shipments to the EU totaled 9.97 million metric tons and increased by 16%. The discrepancy between the figures may be due to updates in information regarding tanker movements and the actual unloading dates of the shipments. Overall, both sources confirm imports of approximately 10 million metric tons and the setting of a new record.
In total, 140 tanker shipments were dispatched from Yamal LNG in the first half of the year. Of these, 136—or more than 97%—arrived at EU ports. China received only four shipments during the same period. Thus, the European market effectively absorbed nearly all exports from Russia’s largest Arctic LNG project.
The estimated value of the shipments delivered to the EU is 5.96 billion euros, or about 6.82 billion dollars. The main destinations were terminals in France, Belgium, and Spain.
The increase in imports occurred as European companies prepared for the final cessation of Russian gas supplies. According to estimates by the EU Agency for the Cooperation of Energy Regulators (ACER), Russian LNG imports increased by 11% year-over-year in January–May 2026, while Russian pipeline gas supplies rose by 7%. Among the reasons cited by the agency is the early delivery of part of the contracted volumes before new restrictions took effect.
However, it is not yet accurate to say that the purchase of all Russian LNG is already banned in the EU. As of April 25, 2026, the ban applies to imports under short-term contracts concluded before June 17, 2025. Deliveries under previously concluded long-term contracts may continue until January 1, 2027. After that date, a complete ban on Russian LNG imports is set to take effect.
Therefore, a significant portion of Yamal LNG deliveries in the first half of the year could have been made under existing long-term contracts and did not formally violate European restrictions.
Data on the increase in the share of Russian gas in EU imports from 12% to 14% also requires clarification. According to the European Commission and the Council of the EU, Russian LNG and pipeline gas accounted for approximately 12% of European gas imports in 2025 overall. ACER estimated Russia’s share during the 2025–2026 winter season at approximately 14%. These figures relate to different periods and therefore cannot be directly interpreted as a definitive annual increase in market share of two percentage points.
The increase in supplies was also driven by the current restriction on the transshipment of Russian LNG at European ports for onward shipment to third countries. As a result, most of the gas arriving at EU terminals remains on the European market rather than being transshipped to other vessels for transport to Asia.
These record purchases highlight the tension between the EU’s policy of phasing out Russian energy sources and the need to ensure stable gas supplies amid a tight global market. At the same time, they highlight the Yamal LNG project’s dependence on European port, shipping, and financial infrastructure: with limited access to Asian routes, Russia has so far been unable to redirect a significant portion of its Arctic LNG to China.
The Yamal LNG project is located on the Yamal Peninsula in the Russian Arctic and is controlled by the Russian company Novatek. Novatek owns 50.1% of the project, with France’s TotalEnergies and China’s CNPC each holding 20%, and the Silk Road Fund holding 9.9%. The project’s production capacity is approximately 17.4 million metric tons of LNG per year.
The EU finalized its phased phase-out of Russian natural gas on January 26, 2026. A complete ban on Russian LNG is set to take effect on January 1, 2027, and on pipeline gas in the fall of 2027. In the event of a serious threat to energy supplies, the European Commission will be able to temporarily suspend certain restrictions for up to four weeks.
Original source Financial Times
