Energy Blast, March 3, 2008

Speaking two days before the deadline set by Gazprom, Yulia Tymoshenko said she was certain that “there will be no cutoff of gas […] no one is going to cut off anything.” But a deal has not yet been reached, and it was announced today that Gazprom has indeed cut supplies to Ukraine by 25% after talks failed. One research analyst from Renaissance Capital Ukraine commented, “This still doesn’t represent a crisis, just a greater degree of brinkmanship. The weather is warm and forecast to stay so, and storage both in Ukraine and further west is unlikely to be depleted after another mild winter.” Gazprom has told the European Commission that gas supplies to the European Union will not be affected by its row with Ukraine. London-listed Russian explorer Timan Oil & Gas will almost triple the amount of wells it has this year, taking its well count to 214 and bringing it closer to a production phase.