Ukraine Inks Gas Deal with European Suppliers

Ukrainian state energy firm Naftogaz has agreed to buy 1.7 billion cubic metres (bcm) of gas from European suppliers at a price of $188-$211 per thousand cubic metres, the company said in a statement on Thursday.

Ukraine, which is still in a protracted gas pricing dispute with Russia, has been seeking to cover its needs with its own production and supplies from Europe.

The latest contracts with European suppliers were agreed within the framework of a $300 million trade finance loan deal with the European Bank for Reconstruction and Development.

The gas will be supplied by five companies including Switzerland's Axpo Trading, Germany's E.ON Global Commodities and Italy's Eni in the period until March.

As of Monday Ukraine's gas reserves had fallen by around a quarter to 12.9 billion cubic metres (bcm) since the beginning of the heating season in mid-October.

Ukraine has said it has enough gas to safeguard supplies over the winter and ensure stable transit of Russian gas to Europe.

The European Union receives about 40 percent of its Russian gas imports via Ukraine.

Reporting by Alessandra Prentice