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After Gazprom CEO Alexei Miller said yesterday his company would consider nearly eight billion cubic meters of Russian gas in Ukrainian underground storage as part payment for gas transit services through Ukraine, Ukraine’s gas shortfall stands now at 18 billion cubic meters, Vremya Novostei newspaper reports.
This year, Ukraine’s Naftogaz will receive only 15 billion cubic meters of fuel from Gazprom, the story says. The Russian gas giant wants to supply it at a European price of $160 for 1,000 cubic meters, a total value of $2.9 billion.
A source close to negotiations told the newspaper Ukraine’s authorities did not rule out the possibility of using “old methods” - unauthorized tapping of fuel - to cover the country’s gas deficit. But stealing from Gazprom pipelines might cost Ukraine dear.
When Belarus tried to take gas from the Russian producer in February last year - amid heated debate about the price of supply - Gazprom suspended transit for about 24 hours, causing panic among consumers, the newspaper says.
Things are different with Ukraine, whose territory transports ten times more than Belarus. It is also not apparent why Ukraine does not agree to a friendly offset solution at $50 for 1,000 cubic meters.
Kommersant newspaper, citing sources, estimates Ukraine’s gas deficit at ten billion cubic meters. It is unlikely that Ukraine will fill the gap with gas from Turkmenistan, the newspaper says. Turkmenistan would be unable sharply to increase production and supply would come too dear for Ukraine, at more than $60 for 1,000 cubic meters.
Alexander Gudyma, from Ukraine parliament’s fuel and energy committee, said yesterday that “even if Gazprom fails to supply the 7.8 billion cubic meters in question, all of Gazprom’s gas exports go through Ukraine and Ukraine will be able to take as much gas as it needs, and there will be no gas crisis.”
Naftogaz Ukrainy chairman Alexei Ivchenko spoke in the same spirit. “If the Russian side offers this offset, we automatically offer to offset this gas as part of Russia’s gas exports through Ukraine to Europe.” In other words, he indicated that Ukraine’s national gas company would siphon off the gas from Gazprom’s trunk line to Europe.
Industry war between Russia and Ukraine is said to loom. It could erupt closer to winter. This would be a larger-scale conflict than the Russia-Belarus spat.
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