Russia continues to play hardball with neighbouring Ukraine, once again fueling European uncertainty about winter natural gas supplies. 80% of Russian natural gas exports to Europe flow through Ukraine.
The Ukraine is struggling to find enough money in order to make monthly gas payments to Russia and Russia isn’t offering much support.
Bloomberg: The Russian government warned of an interruption of natural-gas exports as Ukraine’s financial and political turmoil threaten its ability to meet payments.
“There will be a great danger of another crisis” should Ukraine miss a single monthly payment to energy producer OAO Gazprom, Dmitry Peskov, the spokesman for Prime Minister Vladimir Putin, told reporters late yesterday.
Europe’s dependence on Russian gas keeps proving itself undependable. If one day sufficient Liquified Natural Gas infrastructure could be put in place, perhaps the U.S. could find a growing natural gas market across the Atlantic.