Russian Federation resumes gas supplies to Ukraine

Gazprom halted gas supplies to Ukraine earlier in the year after a breakdown on pricing talks.

The Russian gas supply through Ukraine to Europe will unlikely be disrupted this winter, Vladimir Likhachev, the deputy director of the Energy Research Institute of the Russian Academy of Sciences, told Trend.

Gazprom (OTCPK:OGZPY) resumes gas deliveries to Ukraine after receiving prepayment of $234M from Ukraine’s government, reducing the risk of disruption to supplies to the rest of Europe this winter.

Moscow late final month agreed to resume gas provides to Ukraine after reportedly providing Kiev a rebate, ending months of talks overshadowed by the disaster in japanese Ukraine and fears for Europe´s power safety.

In June, the Gazprom declared that Russian Federation will abandon the transit of gas through Ukraine after 2019.

Ukraine s energy ministry confirmed the resumption of natural gas supplies, adding that the $500 million put aside by state energy firm Naftogaz should be enough to purchase 2.2 billion cubic metres of gas.

Gazprom accounts for around a third of Europe’s gas needs and typically about half of that is pumped via Ukraine.

“Putin is betting on Nord Stream, but that bet is risky”, Sijbren de Jong, energy security analyst at the Hague Centre for Strategic Studies, said by e-mail.

“In 20 to 30 days, the gas volumes in the storage facilities will be significantly increased”.

At the same time, Dudchak argued, Russian Federation won’t leave Ukraine without gas. “This is a huge risk”, he added.

Russia’s annexation of Crimea from Ukraine in March 2014 and Moscow’s backing of rebels waging a separatist insurgency in eastern Ukraine have soured bilateral relations.

As the nations fall out over the conflict in Syria, Moscow-based Gazprom PJSC, the world’s largest gas producer, said last week it would cut the capacity of a planned link to Turkey and on to Europe by 50 percent.