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    Reuters: Bypassing Ukraine Will Be Costly for Russia's Gazprom - Analysts

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Summary

Analysts speaking to Reuters say that Gazprom's moves to bypass Ukraine in gas transit through alternative pipelines will cost the company a high pirce

by: Erica Mills

Posted in:

Press Notes

Reuters: Bypassing Ukraine Will Be Costly for Russia's Gazprom - Analysts

Russia's plans to drop Ukraine as a route for pumping natural gas to Europe will still leave state-run Gazprom facing about $1 billion in annual transit fees to Slovakia and Bulgaria for years to come, analysts and industry sources say.

Russia wants to circumnavigate Ukraine to pipe its gas to Europe because of pricing disagreements, which at times have led to disruptions in supplies to the European Union, but doing so will come at a cost which some analysts say is too high.

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