Ukraine Playing Hardball With Gazprom In New Gas Deal
Ukraine plans to suspend its gas purchases from Russia on April 1, the day after the current contract expires, in an effort to strengthen Kiev’s bargaining position as the two countries negotiate a new deal that could lower the price of the fuel.
Ukraine has been shifting its reliance on gas from Russia to Europe, in large part because of growing tensions between the two countries that have previously led to interruptions in the flow of gas through a Ukrainian pipeline that also serves Western Europe.
Europe has been buying about half of its gas from Russia, and about 30 percent of its flows through Ukraine. Moscow has interrupted that flow three times in the past decade because of pricing disputes with Ukraine. Both Europe and Ukraine hope to end most or all Russian gas shipments by shifting to alternate sources of energy.
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Ukraine believes gas it buys under the current contract with Russia’s state-owned Gazprom is too expensive and has been negotiating with Russia for a lower price for the fuel as well as higher transit fees for Russian gas to European customers.
The expiration of the current contract also coincides with the end of winter, when Ukraine needs to buy less gas for heating.
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