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With winter coming, Ukraine scrambles to import natural gas

Negotiations will begin next week to find a compromise on Russia's sale of gas to Ukraine.

By Ed Adamczyk
A Ukrainian worker checks pressure in the natural gas pipeline from Russia to Poland at the station in Boyarka,15 miles from Kiev. (UPI Photo/Sergey Starostenko)
A Ukrainian worker checks pressure in the natural gas pipeline from Russia to Poland at the station in Boyarka,15 miles from Kiev. (UPI Photo/Sergey Starostenko) | License Photo

KIEV , Ukraine, Sept. 12 (UPI) -- Ukraine is facing a winter without importation, from Russia, of half its regular supply of natural gas, used primarily for heating homes and other buildings.

Naftogaz, Ukraine's state energy company, purchases gas from the Russian company Gazprom, which suspended shipments in June after a dispute over pricing. European countries, many of which are European Union members and currently expanding economic sanctions against Russia, have not been able to reduce Ukraine's shortfall.

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"The situation is very difficult. Since we have no choice, no other solution, we'll find a solution and have to live with the amount of gas we will have," Natfogaz chief Andriy Kobolev told the New York Times.

Gas pipelines in Eastern Europe are typically equipped to "reverse flow" of natural gas, and Ukraine hoped neighboring Slovakia could divert gas, flowing from Russia and through Slovakia, to Ukraine.

While EU regulations permit secondary sales of gas between countries, Gazprom takes a dim view of the practice, and Slovakia, itself reliant on Russian gas, walks a tightrope between appeasing both Russia and the EU.

Unless Natfogaz and Gazprom can reach an agreement, winter in Ukraine is likely to be a cold one. It is believed Ukraine could receive about 15 billion cubic meters of gas from European countries other than Russia, about 30 percent of its annual consumption.

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"Is that enough? Probably not," said Laurent Ruseckas of consulting firm IHS Energy. "By the beginning of 2015, you could start running into trouble."

The situation is complicated by Russia's reduction of gas to Poland, earlier this week, ending the reverse flow from Poland to Ukraine. PGNiG, the Polish state energy company, said in a statement its supplies were cut by 45 percent. A Gazprom statement denied the claim.

Ukraine, Russia and the EU will seek a compromise on the cost of Russian gas for Ukraine next week, in negotiations, likely in Vienna. Russia has insisted outstanding Ukrainian debt for gas be paid before any more flows between the two countries, while Ukraine has sought a price cut.

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