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    Reuters: Ukraine snubs Russian gas for European imports

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Summary

Ukraine hope that replacing Russian gas with cheaper imports from Europe together with development of its shale gas and Black Sea shelf deposits will provide leverage in talks with Moscow

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Press Notes

Reuters: Ukraine snubs Russian gas for European imports

Ukrainian state energy firm Naftogaz has reduced Russian gas imports by 30 percent this year and will cut them further in 2014 by doubling imports from Europe, Ukraine's Energy Minister Eduard Stavytsky told Reuters in an interview.

The former Soviet republic has long asked Russia to cut the price of energy supplies. But with years of talks producing no tangible results, in late 2012 it started to replace Russian gas with cheaper fuel purchased on the European spot market.

Although it is years away from potential energy independence, Kiev hopes diversification will ease Moscow's grip on its economy and persuade Russia to reconsider its stance - which has become even tougher this month as Moscow stepped up customs checks on all Ukrainian goods.

"I think that (imports from Europe) will be 2.0-2.5 billion cubic metres this year, and in 2014 no less than 5 billion cubic metres, judging from the plans and bids that I have already seen," Stavytsky said.

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