Tymoshenko’s declarations may lead to new European gas crisis

A combination of events, demands and potential price rises could spark a new European energy crisis. The chief elements converging now are calls by Ukraine’s prime minister designate to re-visit the gas agreement reached with Russia at the beginning of the year, new demands by Turkmenistan that Russia pay USD100 per thousand cubic meters of gas, reports that Naftogaz is not storing enough gas in its underground storage facilities to ensure uninterrupted supplies to Europe this winter, and indications that Gazprom intends to raise prices for Ukraine again in July.

“It seems like all the makings of a perfect storm,” said Jeffrey Woodruff, Director in Fitch Rating’s Energy Group in Moscow. “Any of the events in isolation could be enough to spark a new supply interruption concerns in Europe, but all of them colluding near the beginning of the G8 summit on energy security seems almost unbelievable.”
ForUm