Russia unlikely to cut off gas to Ukraine after recent payments
By ELENA MAZNEVA
Bloomberg
Twice in the past decade Russia has started the New Year by cutting off gas supplies to Ukraine. Even with relations between the countries at their lowest ebb, that’s not likely this year because Ukraine’s made sure it’s paid up.
NAK Naftogaz Ukrainy, Ukraine’s state gas company, said today it transfered cash to Russian counterpart OAO Gazprom to pay for January shipments of the fuel.
About one third of Europe’s gas comes from Russia and shutoffs in 2006 and 2009 over disputes with Ukraine during freezing winter months are a reminder of the grip it holds on the region’s energy supply. Ukraine’s Soviet-era pipeline network carries about 40% of OAO Gazprom exports to Europe.
This year, Russia shut off the gas for Ukraine in June as fighting escalated between pro-Russian rebels and government troops. It restarted flows in December after an interim European Union-brokered deal was reached, settling price and debt issues to last through the winter heating season.
“We have fully complied with the agreements reached in Brussels to ensure stable supply of Russian gas to Europe,” Naftogaz CEO Andriy Kobolyev said in a statement today. “Together with the rest of Gazprom’s European clients we look forward for the Russian counterparts to comply as well.”
While Ukraine is fulfilling all transit obligations, the risk to the EU remains as Ukraine hasn’t yet bought enough gas to last through the winter, Russian Energy Minister Alexander Novak said last week. Nobody from Gazprom was available today to comment on the issue.
The interim Russia-Ukraine gas deal settled a gas debt schedule and price discount through March before an international arbitration decides on the dispute.
The tail end of the first quarter “still holds risk that Ukraine might have to lift gas meant for the EU, those risks could be more pronounced in winter ’15-16 if Ukrainian gas storage is not refilled over the summer,” Energy Aspects said in an e-mailed note earlier this month.
The countries haven’t yet started talks on gas supplies after March, according to their officials.
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