Slovakia and Ukraine Reinstate Gas Pipeline

Slovakia and Ukraine have agreed a deal that will allow gas from Central Europe to reach Ukraine via Slovakia.

Under the deal Slovakia will reinstate a disused pipeline that will be capable of supplying 3 billion cubic metres (bcm) of gas a year to Ukraine.

Ukraine has been looking for alternatives to Russian gas, which last year accounted for around a half of its 55bcm consumption.

In April, German energy firm RWE began deliveries of gas via Poland.

Under that deal RWE can supply up to 10bcm of gas a year.

Russia has almost doubled the price of gas for Ukraine, following the toppling of pro-Russian President Viktor Yanukovich in February.

Also, Ukraine owes Russian gas firm, Gazprom $2.2bn (£1.3bn) for supplies of gas.

The two nations are in dispute over that debt and Ukrainian officials are concerned that Gazprom could just cut off the nation’s supply of gas.

via BBC

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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