Ukrainian threat to EU gas supplies

Russian exports supply about a quarter of the EU’s gas, of which about 80 per cent flows through Ukraine.

This year Russian PM, Vladimir Putin, and his Ukrainian counterpart, Yulia Timoshenko, agreed that Ukraine will buy Russian gas at market prices within the next three years.

Gazprom is now on a mission to finalise the deal. Some predict the price for Ukraine might double.

It has become a usual December routine: as New Year trees appear on Moscow’s streets, Gazprom is getting ready for yet another gas stand-off with Ukraine.

In 2005 Ukraine refused to pay and Gazprom shut off the supply on the first day of 2006. Kiev then started siphoning off gas from the pipeline, which resulted in a disruption of gas deliveries to Europe.

This time, however, the Ukrainian leadership is promising there will be no repeat of the 2006 scenario.

So far, an agreement is not reached yet and the chances of sealing a deal before the New Year are fading by the day.

Author: Ksenia Kochneva