Bloomberg: Russia-Ukraine Gas Cutoff Unlikely This New Year After Payments

Twice in the past decade Russia has started the New Year by cutting off gas supplies to Ukraine. Even with relations between the countries at their lowest ebb, that’s not likely this year because Ukraine’s made sure it’s paid up.

NAK Naftogaz Ukrainy, Ukraine’s state gas company, said today it transfered cash to Russian counterpart OAO Gazprom (GAZP) to pay for January shipments of the fuel.

About one third of Europe’s gas comes from Russia and shutoffs in 2006 and 2009 over disputes with Ukraine during freezing winter months are a reminder of the grip it holds on the region’s energy supply. Ukraine’s Soviet-era pipeline network carries about 40 percent of OAO Gazprom (OGZD) exports to Europe.
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