Russian gas – a weapon of strength or of weakness in the Ukraine crisis? Gazrpom has indicated it may raise prices for Kyiv in the next quarter. Currently Moscow sells to its neighbour at a hefty discount as part of 20 billion dollar support package.<br /><br />Negotiations are ongoing to maintain the cut price deal but if no agreement is reached the price could rise in the second quarter.<br /><br />Around 70 percent of Ukraine’s imported gas comes from Russia, currently it has cut back and is using up gas in storage. <br /><br />About 30 percent of Europe’s supplies come from Russia half of which transit through Ukraine.<br /><br />In two recent commercial disputes with Naftogaz – Ukraine’s state energy company Gazprom cut commercial deliveries disrupting supplies to much of Europe. Analysts believe playing the gas card in this crisis could be to Russia’s disadvantage.<br /><br />Its stock fell more than 13 percent amid market jitters over gas flows via Ukraine.<br /><br />But at its annual meeting with investors the Russian state company said it believed Europe would become even more dependent on Gazprom’s supplies.
