Help from Germany: Firms Could Soon Provide Gas to Ukraine

http://www.spiegel.de/international/germany/german-companies-prepare-plans-to-supply-ukraine-with-gas-a-957988.html



Ukraine's dependence on gas from Russia has often been used as a political weapon by Moscow in conflicts with its neighbor. German companies are now considering how Western European gas could be rerouted to Kiev if the Kremlin decides to cut supplies.

Help from Germany: Firms Could Soon Provide Gas to Ukraine
By Frank Dohmen
March 11, 2014 – 11:34 AM

In geopolitical disputes between Moscow and Kiev, natural gas is a frequent tool used by the Russians to bring Ukraine back into political line. With frigid winter temperatures, Ukraine is heavily reliant on Russian gas to provide heating, and in recent years, the Russians have twice cut off gas supplies to the country.

That eventuality could play a role in the current crisis. Now Germany's major energy utility companies are developing strategies to help Ukraine fill the shortfall if Moscow decides to cut gas supplies. Companies including RWE and E.on are working on plans to supply Ukraine with weeks' worth of gas.

Currently, Ukraine taps around half of it gas needs from Russia. But last Friday, Russian Gas monopolist Gazprom threatened to suspend deliveries to Ukraine if the country doesn't pay its outstanding February bill of €1.7 billion ($2.35 billion).

In an emergency, the flow through Europe's pipelines could simply be reversed, with gas getting pumped from German reservoirs through the Czech Republic and Slovakia directly to Ukraine. Following this year's especially mild winter, Germany's reservoirs are much fuller than usual. Even long-term deliveries would be conceivable at the moment.