Those interruptions have not only been problematic for Ukraine, where winter temperatures can drop to -20 degrees Celsius (-4 degrees Fahrenheit), but also for Europe, which relies on Gazprom for about a third of its energy needs. Gas purchases from Russian Federation are down by more than 50 percent.
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Pricing disputes between Moscow and Kyiv in the past decade have led to a number of interruptions in the supply of natural gas.
Gazprom has warned that the supplies of 2 bcm will be not enough and Ukraine will run out of gas before winter ends.
“A prepayment of $234 million from the promised $500 million for October was received from Ukraine’s Naftogaz”, Miller told journalists. The Kremlin opted to keep prices for Ukraine unchanged from the second quarter, which included a $40 discount per 1,000 cubic meters purchased. The European Union has allocated $500 million to Naftogaz to ensure gas supplies of 2 billion cubic meters (bcm) as storage for the winter season.
The resumption of deliveries could help Kiev accumulate 17 billion cubic meters of natural gas by October 21, the “absolute minimum for the security of gas transit to Europe”, said analysts from VTB Capital bank.
With Russian Federation slipping into recession on the back of lower oil prices and Western sanctions over the insurgency in eastern Ukraine, the economy ministry said Gazprom could produce 414 billion cubic metres of gas this year, an all-time low due to weak demand, among other reasons.
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The energy relationship between Ukraine and Russia has been strained since at least 2006, when Ukrainian debt issues prompted Russian energy company Gazprom to cut gas supplies through the country.
