Russia’s Grip on Ukraine’s Energy Supply
Trying to loosen the symbiotic energy relationship between Russia and Europe.
March 12, 2014
1. 52% of Russia’s federal budget revenues in 2012 came from oil and gas and 70% of Russia’s total exports were from oil and gas.
2. Over three-quarters (76%) of natural gas from Russia go to customers in Western Europe.
3. Six European nations rely on Russia for 100% of their gas and seven others get at least half their gas from Russia.
4. Ukraine relies on Russia for 70% of its natural-gas supply.
5. Ukraine owes Gazprom, Russia’s gas exporter, $1.89 billion and has failed to meet the deadline for payment of its February 2014 deliveries.
6. Ukraine’s failing to pay the bill could cause Gazprom to turn off natural-gas delivery to Ukraine.
7. Germany’s gas storage tanks are well filled after a mild winter. It stands ready to assist Ukraine in securing its energy supply, including via reverse flows.
8. Over the medium term, the crisis could drive new pipeline projects into Europe from gas-rich countries such as Turkmenistan and Israel.
9. The Ukrainian crisis could also give new momentum to projects such a proposed gas pipeline from the Caspian Sea through Turkey and Greece to Europe.
10. Russia’s tactics on Ukraine underscore Europe’s need to diversify away from Russian gas.
From “West tries to loosen Russia’s gas grip,” by Ian Talley and Amy Harder (Wall Street Journal).
70% of total Russian exports in 2012 were from oil and gas.
Over three-quarters (76%) of natural gas from Russia go to customers in Western Europe.
Six European nations rely on Russia for 100% of their gas and seven others get at least half their gas from Russia.
Ukraine relies on Russia for 70% of its natural-gas supply and currently owes it $1.89 billion.