Ukraine to import up to 32.5 bcm of gas in 2013

Ukraine will import 30.0 to 32.5 bcm of natural gas this year, according to a May 13 statement from Energy Minister Eduard Stavytskiy. Last year, Ukraine imported 32.9 bcm of gas.

Alexander Paraschiy: Based on the available data, we estimate that Ukraine imported about 8.1 bcm of gas in 4M13, some 2.6 bcm (24%) less yoy. By decreasing imports, Ukraine was able to save (or delay the use of) USD 1.1 bln in NBU foreign reserves during the last four months. Yet we see this source of support for reserves as having been exhausted – Ukraine cannot further cut gas imports yoy. Under Stavytskiy’s plan, Ukraine will have to import 22.0 – 24.4 bcm of gas in May-Dec. 2013, which comes out to between flat or up to 10% more yoy.