INSTANT VIEW - Russia-Ukraine row hits European gas supplies

Tue Jan 6, 2009 4:28pm GMT
 
Email | Print | | Single Page
[-] Text [+]

(Reuters) - Russia's gas dispute with Ukraine has cut supplies to Turkey and a swathe of European countries, threatening disruption as far west as Italy and Germany.

Following are comments from analysts:

DMITRY GOUROV, AN ANALYST AT UNICREDIT:

"A quick solution to the crisis seems to be receding."

"Most CEE countries are now facing lower gas supply, adding further to downside risks to growth. Although local policymakers are relatively confident about gas reserves we see growth of those countries most at risk which have energy intensive production, use a high percentage of gas in their total energy consumption and import a high proportion of gas from Russia.

"In CEE these are Slovakia, Hungary and to lesser extent Poland and Czech Republic (given lower gas usage in their total energy consumption).

"This January, Kiev looks to be more prepared for a prolonged defence - Ukraine has 22 percent of its annual consumption in storage (17 billion cubic meters, according to Naftogaz), allowing it to sit through the conflict, while the November 29 percent year-on-year collapse in industrial production further abates demand for gas.

"However with temperatures in Kiev approaching minus 20 degrees Celsius, gas is needed. And the politician who takes tribute for "solving" the crisis will be well positioned for upcoming presidential elections - something easily remembered by the population."

TANYA COSTELLO, AN ANALYST AT EURASIA GROUP IN LONDON:  Continued...

 
Chancellor of the Exchequer Alistair Darling speaks at a Thomson Reuters newsmaker event in London October 21, 2009. REUTERS/Andrew Winning
Darling says stimulus stays

G20 policymakers are agreed that it is too early to pull the plug on economic life-support packages, Chancellor Alistair Darling tells Reuters.  Full Article 

Most Popular General News on Reuters UK

  • Articles
  • Videos
 A demonstrator pounds away the Berlin Wall as East Berlin border guards look on from above the Brandenburg Gate in this November 11, 1989 file photo. REUTERS/David Brauchli/File Photo
Berlin Wall anniversary

Twenty years after the Berlin Wall's fall, Reuters provides an in-depth, multimedia look at one of the 20th Century's defining moments.   Full Coverage