EU Traders Betting on Ukraine Deal as Winter Gas at Record Low

29-Jun-2015

European Union traders are betting Ukraine will reach a deal to keep natural gas supplies flowing from Russia when the nations meet EU representatives Tuesday.

Gas for delivery this winter in the U.K., Europe’s most traded market, fell to the lowest on record on the ICE Futures Europe exchange, signaling traders aren’t worried about supplies when the heating season starts in October. Russia approved Monday a new deal for Ukraine that will leave the price it pays OAO Gazprom unchanged in the third quarter, said Alexey Miller, chief executive officer of the Moscow-based company.

EU Energy Commissioner Maros Sefcovic, Russian Energy Minister Alexander Novak and his Ukrainian counterpart Vladimir Demchyshyn will meet in Vienna Tuesday to seek the extension of a winter package first signed Oct. 30. More than 10 percent of Europe’s gas needs travel through Ukraine from Russia and price disputes between Gazprom and NAK Naftogaz Ukrainy disrupted supplies to the continent in 2006 and 2009.

(By Isis Almeida Bloomberg Business) Read More...