Ukraine prepares for a winter of uncertainty
As the dispute over the price of and payments for gas between Russia and Ukraine continues, so do threats to Europe’s supply over the winter season. (flickr)
Ukraine’s ability to meet its demand for gas this winter will be affected by several factors, including direct supply from Russia, storage levels, reverse flows and the severity of the weather. The effects of these factors on Ukraine’s supply/demand balance could have implications for Europe’s gas supplies this winter as well.
Although there has been some progress in talks between Russia and Ukraine, there is still uncertainty over what will happen this winter. A payment deal was agreed between Moscow and Kiev on 26 September. Then, on 18 October, an agreement that $1.45 billion would be paid prior to supplies starting and a total of $3.1 billion would be paid by the end of the year was announced. However, there remain issues to be resolved. The next trilateral meeting is taking place on 21 October, as GGA goes to press.