Impendent fuel crisis in Ukraine will crash country's economy
The Voice of Russia
According to a recent statement made by the energy minister Yuri
Prodan, Ukraine will run out of gasoline in the next 29 days. Given
Ukranie's dire economic situation, a fuel crisis will surely crash the
country's economy.
Most
oil refineries in Ukraine are owned by Russian companies or are
operating on Russian crude oil. Since the beginning of political crisis,
refineries have almost stopped producing gasoline and the imports of
crude oil have ceased.
"If we talk about fuel, we have a stable
situation. We estimate that we have enough fuel for 28-29 days", Prodan
told RBK Ukraine. Of course, a situation in which a country receives no
crude oil imports and has insignificant stocks of fuel can't be
described as "stable", but the current Ukrainian "government" is known
for its unjustified optimism.
The
situation with the natural gas supplies is just as bad. According to
Prodan, Ukraine can access 2 bn cubic meters of natural gas from
its underground storage facilities. This quantity should be enough for
covering between 2.5 and 3 months of consumption. However, after April
1st all of the existing discounts on Russian gas price will be canceled.
In the past, Ukraine was unable to pay for natural gas deliveries even
at discounted prices so, there is doubt that a crisis-stricken
illegitimate government is alble to pay for gas deliveries at full
price.
After Ukraine's debt to Gazprom reached 2 billion dollars, the
Russian gas giant warned that the next deliveries will only be made
after advance payments. It is highly unlikely that the self-appointed
authorities in Kiev will find the funds necessary for the payments. Yuri
Prodan's hopes that "reverse supplies" from the EU can help were dashed
by a recent statement made by Slovakian government which stressed that
Bratislava will not increase supplies to Ukraine to a level that can be
"detrimental" to the Slovakian economy. Robert Fico, the prime minister
of Slovakia, told the press that his priority is "to ensure the flow of
Russian gas through Ukraine" and pointed out that although supplies from
Slovakia can help Ukraine, his government is not in a position to fund
such help.
Overall,
the situation in Ukraine has not yet become a full-fledged fuel crisis
but it is likely to evolve into one.
Regardless of the source, imports
of crude oil and natural gas will require advance payments in hard
currency while the country's budget is empty. Self-appointed Ukrainian
authorities expect help from the US and the EU, but so far no one in the
West has ...
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Most
oil refineries in Ukraine are owned by Russian companies or are
operating on Russian crude oil. Since the beginning of political crisis,
refineries have almost stopped producing gasoline and the imports of
crude oil have ceased. "If we talk about fuel, we have a stable situation. We estimate that we have enough fuel for 28-29 days", Prodan told RBK Ukraine. Of course, a situation in which a country receives no crude oil imports and has insignificant stocks of fuel can't be described as "stable", but the current Ukrainian "government" is known for its unjustified optimism.
The
situation with the natural gas supplies is just as bad. According to
Prodan, Ukraine can access 2 bn cubic meters of natural gas from
its underground storage facilities. This quantity should be enough for
covering between 2.5 and 3 months of consumption. However, after April
1st all of the existing discounts on Russian gas price will be canceled.
In the past, Ukraine was unable to pay for natural gas deliveries even
at discounted prices so, there is doubt that a crisis-stricken
illegitimate government is alble to pay for gas deliveries at full
price.
After Ukraine's debt to Gazprom reached 2 billion dollars, the
Russian gas giant warned that the next deliveries will only be made
after advance payments. It is highly unlikely that the self-appointed
authorities in Kiev will find the funds necessary for the payments. Yuri
Prodan's hopes that "reverse supplies" from the EU can help were dashed
by a recent statement made by Slovakian government which stressed that
Bratislava will not increase supplies to Ukraine to a level that can be
"detrimental" to the Slovakian economy. Robert Fico, the prime minister
of Slovakia, told the press that his priority is "to ensure the flow of
Russian gas through Ukraine" and pointed out that although supplies from
Slovakia can help Ukraine, his government is not in a position to fund
such help.Overall, the situation in Ukraine has not yet become a full-fledged fuel crisis but it is likely to evolve into one.
Regardless of the source, imports of crude oil and natural gas will require advance payments in hard currency while the country's budget is empty. Self-appointed Ukrainian authorities expect help from the US and the EU, but so far no one in the West has ...
Read More:
