Russian Gas Stops Flowing into the Ukraine

Keith Kohl

Written By Keith Kohl

Posted December 1, 2015

Winter is coming, and the Ukraine just made a brash decision to stop buying natural gas from Russia’s Gazprom.

Honestly, they don’t have much of a choice, being that Gazprom has said that it will no longer be delivering natural gas to Kiev.

Then again, this feud is nothing new. In fact, Russia and Ukraine have battled over gas prices every year at this time… and I’m not sure why the Ukrainian government is sure they can get Putin to drop his prices this time around. 

Ukrainian Prime Minister claims, “It’s not that they aren’t delivering the gas. It’s that we aren’t buying any”.

On the other side of the fence, you can imagine how frustrated Russia is from not receiving payments for their gas.

As it turns out, Ukraine actually owes Russia a lot of money due to the fact that their government decided it wouldn’t pay what Russia was asking.Ukraine natural gas

The supposed halt to gas supplies will not be lifted until Russia receives a prepayment from Ukraine.

You see, a good portion of Europe gets its gas pumped from Russia through Ukraine.

Even though the European Commission isn’t concerned yet, it’s a little disconcerting to learn that one-third of your natural gas supply is transported through the Ukraine.

To put a little more perspective on this, keep in mind that the Ukraine imported 400 million cubic meters of Russian gas. Their government claims they have enough gas in reserve to survive without Russian imports.

Ukraine may be interested in getting its natural gas supply from elsewhere, it seems.

Of course, one potential winner here is U.S. LNG…

With LNG exports expected to increase over the next few years as more facilities come online, it’s not surprising to learn that Investors from the US are looking to possibly build a LNG port in Ukraine.

To read more about this, click right here. 

Until next time,

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Keith Kohl

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A true insider in the technology and energy markets, Keith’s research has helped everyday investors capitalize from the rapid adoption of new technology trends and energy transitions. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital, as well as the investment director of Angel Publishing’s Energy Investor and Technology and Opportunity.

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