Ukraine Expects Russian Gas To Resume Supply Today

Ukraine expects Russia to resume supplies of gas from Monday after Kiev transferred a pre-payment of $378 million to Gazprom, its energy minister said on Sunday.

Russia cut gas deliveries to Ukraine in mid-June in a dispute over prices and debts and supplies have remained suspended while the haggling played out against a background of worsening political relations caused by the separatist war in Ukraine, which Kiev says Moscow is promoting.

Cash-strapped Kiev had delayed buying new supplies for as long as possible and had been drawing on severely depleted reserves to meet consumer demand as increasingly cold weather set in.

But with freezing temperatures and in line with a deal signed by Ukraine’s gas company Naftogaz and Gazprom in October, Kiev late on Friday transferred $378 million to the Russian gas giant as an upfront payment for 1 billion cubic meters of gas for December.

Under the deal, the prepaid gas was to be delivered within 48 hours of payment.

Energy Minister Volodymyr Demchyshyn, speaking on the TV channel 1+1 on Sunday night, said: “We have paid a sum for 1 billion cubic meters. From Monday we will start receiving.”

via Reuters

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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