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Gazprom 'Could Stop' EU Gas Supplies Amid Record Sales

Business » ENERGY | April 29, 2014, Tuesday // 14:00| Views: 1345 | Comments: 0
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Russia's energy giant Gazprom does not rule out the suspension of gas transit to Europe, the company has warned in its 2013 financial report.

"A situation" might be triggered in which Gazprom "would not be able to prevent a potential disruption of gas supplies via the territories of the following countries: Ukraine, Belarus and Moldova," as the document was quoted by ITAR-TASS agency.

The concern's leadership underscores that there have been instances in which "gas supplies designated for European consumers were diverted due to discrepancies with countries from the former Soviet Union, through the territories of which the gas is being transported."

Bratislava and Kiev agreed on Monday that the Ukraine should receive gas supplies via Slovakia, amid a pricing dispute between Ukraine and Gazprom and a European debate as to whether economic sanctions including a ban on fuel imports should be imposed on Moscow. Monday's deal envisages the use of gas delivered again by Gazprom for the purpose.

Gazprom also argues that the ongoing political and economic crisis in Ukraine might prevent the country's Naftogaz to abide by its transit obligations and successfully deliver gas to European consumers.

This is how the energy company explains its decision to make a shift toward a "market" price for resource exports to the ex-Soviet countries.

It is precisely the states formerly part of the USSR where Gazprom has registered a 7% decrease of revenues for 2013, according to the report.

In Europe, nevertheless, 2013 was Gazprom's strongest since 2008, with an export growth of 15% compared to the previous year.

The latest statistics show that deliveries to Europe amount now to 174.3 B cubic meters a year, up over 10 bcm from what was formerly estimated. The EU covers about 30% of its needs with Russian gas and this dependence has posed a severe obstacle to the debates for possible tough sanctions on Gazprom over the Ukrainian crisis.

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Tags: Gazprom, Ukraine, Russia, europe, revenues, sanctions, Slovakia
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