Parties meet on Ukraine gas debts as storage volume concerns mount
Published: 18 June, 2009, 22:08
TAGS: Markets, Russia and the global economy, Finance, Gas
Ukraine is looking to get $4 billion dollars from Europe to assist in buying Russian gas. Naftogaz Ukraine has seen net losses increase 80% year on year in the first quarter of 2009, and needs money to pay its debts.
The European Union has expressed concern for delivery of supplies to its member states. Representatives from the Ukrainian energy company and Russia's Gazprom are in Brussels for an EU Summit, and Pyotr Grishin, Credit Analyst at Renaissance Capital believes Ukraine will need all the help it can get.
"Russia has demonstrated enough willingness to cooperate, to make its part in the burden to provide the respective part of the financing and Europe will have to do that same because Ukraine is in no position to think this will be fulfilled without European participation."
Another proposal is for European companies to buy Russian gas and keep it in Ukrainian underground storage facilities. Earlier this week, Gazprom said Ukraine had not been pumping gas into underground storage facilities for the past 7 to 10 day.
Supplies of Russian gas to Ukraine are between 25 to 35 million cubic meters a day. A year ago, they were around 170 to 180 cubic meters a day.
It needs to buy some 19 billion cubic meters for storage before winter in order to both meet local demand and secure transit to the west. That volume is worth about $4.8 billion dollars.
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The time of FREE or cheep Gas flowing from Russia to Ukraine is over;the time has come for them to pay for it,like anyone else.And europe too if they want gas,like Ukraine they must pay for it.After all this group of nations for quiet long is acting as Russian enemies,but pretending to be friends;and since this European and American Alliance managed to surround the Russia Federation with enemies,let them all enjoy the burden of paying for something they for so long feel entitled. It was not even one year ago that all europe and of course the american Masters,were condemning Russia with the war in georgia,and after that until last Winter,they continued with the same Arrogance,but when Russia shut of the gas they finally realized they couldn't push Russia any further,and now all these Russia enemies must pay for it.The time for childish games are over and from now on the Fascists realized they must pay if they want any gas flowing