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    Reuters: Winter season heightens Russia-Europe gas game

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Summary

Winter gas year begins on Oct. 1. EU needs to secure supplies for coldest months. Russia needs the revenues

by: Sruthi

Posted in:

Press Notes

Reuters: Winter season heightens Russia-Europe gas game

A cat and mouse game is on between Europe and Russia over gas supplies as the continent switches into the winter heating season.

Since September, Russia's state-controlled Gazprom has sent less-than-requested deliveries to Poland, Slovakia, Austria and Hungary - after the European Union began sending gas to Ukraine - in a clear warning from Moscow ahead of the winter heating season which officially starts on October 1, when the industry switches to higher pricing.

"Nobody should be surprised by what Russia does. They want to keep pressure on Ukraine... at the start of the heating season," said Michael LaBelle, a gas expert at the Central European University in Budapest.

Russia is Europe's biggest supplier of natural gas, meeting almost a third of annual demand and in return, Gazprom receives around $80 billion in annual revenues from its European customers, making up the majority of its income.
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