FT: Europe natural gas prices jump on fears of Russia-Ukraine ’gas war’

European gas prices have rallied after Ukraine failed to meet a deadline to pay off its Russian gas debts.

The ICE July natural gas contract rose 6.2 per cent to 44.45p a therm, on fears a third “gas war” between the two countries in eight years could threaten supplies to Europe. An equivalent Dutch contract was up 4.5 per cent.

Russian gas meets around a third of European demand and about 40 per cent of its supplies flow through the Ukraine.

During previous price disputes in the winters of 2005-06 and 2008-09, Gazprom, the state-controlled Russian energy giant, stopped pumping gas to Ukraine, which led to reduced supplies across the continent.
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