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Markets & Forecasts

Can Ukraine reverse the flow?

Reverse flows into Ukraine are likely to remain negligible in the short to medium term. This means the country will remain dependent on Russian gas to replenish stocks to suitable levels for next winter Reverse flows into Ukraine are likely to remain negligible in the short to medium term. This means the country will remain dependent on Russian gas to replenish stocks to suitable levels for next winter.
By Fatima Sadouki 23 April 2014 Europe & Russia / Supply & Demand 0 24558
Protests in Kiev, Ukraine. (PA)

Now that the Q2 2014 price paid by Naftogaz for Russian gas has increased by around 80%, Kiev is looking for opportunities to purchase cheaper spot volumes via reverse flows from Poland, Hungary and Slovakia. The price of $268.5/Mcm for gas in Q1 2014 was raised to $385.5/Mcm on 1 April and to $485.5/Mcm on 2 April, after Russia’s cancellation of the Kharkiv agreements, which granted Ukraine a discount in exchange for Russia’s lease of naval bases in Crimea.

In fact, now that European hub prices...