Ukraine is taking gas from its underground storages, which could have a "negative effect" on gas transit to Europe, a senior executive from Russian state gas firm OAO Gazprom (GAZP.RS) said Thursday.
Ukraine
is
taking gas from its underground storages, which could have a "negative
effect" on gas transit to
Europe
, a
senior executive from Russian state gas firm OAO Gazprom (GAZP.RS) said
Thursday.
Ukraine
said
this week that it stopped taking gas from Gazprom at the start of November as
it had sufficient supplies until the end of the year.
"That means domestic production and underground storages are used to
provide for the needs of the domestic market," said Pavel Oderov, head of
Gazprom's International Business Department. He said gas reserves in storage
are needed to ensure gas transit to
Europe
.
Russia
accounts for one-quarter of
Europe
's gas
needs, the bulk of which flows via
Ukraine
. Supplies
to
Europe
were disrupted in 2006 and 2009 amid price and
contract disputes between
Ukraine
and
Russia
.
Ukraine
owes
$1.3 billion for gas deliveries, and Gazprom is considering granting an
extension on payments, Mr. Oderov said.
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