Jump in prices prompts Naftogaz to turn back to Russia for gas supplies

Ukraine’s state oil and gas company Naftogaz has asked Russian energy giant Gazprom to start supplying it with gas again to see it through next winter,  the RIA Novosti news agency reported yesterday. In a letter to his Russian counterpart Alexei Miller, its CEO Andrei Kobolev said that Ukraine was ready to resume imports from its eastern neighbour for the nine months beginning in July if Gazprom could offer it  a better price than its European suppliers.
The move from Naftogaz comes in the wake of rising gas prices, with spot prices on the UK’s National Balancing Point British trading platform topping $180 per thousand cubic meters yesterday, almost $30 above the going rate for Russian supplies in May.
Kiev stopped importing gas from Russia at the end of last year, partly because it claimed it could get it cheaper from Europe and partly because of the deterioration of relations following the annexation of Crimea and the separatist insurgency in eastern Ukraine. Since then, Naftogaz has been relying on imports from  more than 10 European suppliers, including Norway’s Statoil and a number of German traders.

Source: Vedomosti