Ukraine struggles to meet Russian cash call

摘要

The threat of a disruption to European gas supplies has become a monthly event on the gas market calendar as Ukraine's Naftogaz struggles to pay its Russian task master Gazprom. A new agreement on gas transit is needed. Perversely, if a stable framework governing the gas flow through Ukraine could be agreed, Europe might conclude that it has less to fear from greater dependence on Russian gas. Paul Whitehead and Alex BorrnSince the first Ukraine-Russia gas crisis in winter 2005/06, the threat of an interruption to European gas supplies has become an almost annual event. However, the agreement reached January 19 following the latest stand-off has turned the threat into a monthly occurrence as state-owned Ukrainian gas company Naftogaz struggles to meet cash calls from Russian state gas monopoly Gazprom. According to the deal, Naftogaz must make monthly payments for gas supplies within seven days of the end of each month. Russian Prime Minister Vladimir Putin has threatened to shut off the gas if the payments are not made.