Polish gas monopoly PGNiG posted a 70% drop in first-quarter net profits, largely due to the increased costs of importing from Russia. Russia’s acting Deputy Prime Minister Igor Sechin proposed that power grid firm MRSK merge with the Federal Grid Company; Renaissance Capital immediately called the suggestion ‘a victory for short-term political considerations over the long-term health of the sector’. A deal to give Chevron and Royal Dutch Shell development rights for natural gas fields could boost investment in Ukraine and help it produce 10% of its own energy requirements by 2020. JKX Oil and Gas has started commercial deliveries from its Koshekhablskoye field in southern Russia. TNK-BP subsidiary Varyoganneftegaz has announced that it will invest over 2 billion rubles in 2012 into field infrastructure projects in West Siberia. China’s Sinopec has launched its first shale gas project with a production capacity aim of 300-500 million cubic metres a year by 2013.