Russia Issues Reminder About Low Ukrainian Gas Stock

Russia says there is a risk that gas shortages this winter could force Ukraine to siphon off supplies of Russian gas meant for EU customers.

Ukraine’s gas reserves have reached a “critical” state, Russian Energy Minister Alexander Novak said.

He was speaking after talks in Moscow with EU Energy Commissioner Guenther Oettinger. The EU is anxious to ensure secure gas supplies for the winter.

Ukraine needs to store much more gas underground, Mr Novak said.

He estimated at 10bn cubic metres (353bn cu ft) the amount of extra gas that Ukraine would need to pump into underground storage tanks to avoid having to siphon off gas from the transit pipelines.

In winter, he warned, “there will be big risks, above all the possibility of Ukraine taking gas to meet its own needs, instead of those supplies going to European customers”.

via BBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza