Thanks to mild winter, Europe less reliant on Russian gas through Ukraine
Published on Mar 3, 2014 8:43 PM
LONDON/PRAGUE (REUTERS) - A mild winter and improved infrastructure mean that Europe is less reliant on Russian natural gas pumped through Ukraine than in past years, easing worries that the escalating crisis in Ukraine could hurt supplies.
Russia is Europe's biggest gas supplier, providing around a quarter of continental demand, which at current daily flows of 270 million cubic metres (mcm) is worth almost US$100 million (S$127 million) a day. Around a third of Russia's gas is exported through Ukraine.
Fears for the stability of supply to Europe increased over the weekend when Russian forces took control of Ukraine's Crimea region and President Vladimir Putin said he had the right to invade his neighbour to protect Russians there after the overthrow of ally Viktor Yanukovich.
Moscow has in the past cut supplies to Ukraine when negotiating prices with Kiev, causing shortages especially in central Europe, which gets most of its supplies from Russia.
To continue reading, log in if you are a subscriber
If you are not a subscriber, you can get instant, unlimited access here