Head of Russia's gas giant Gazprom announced his decision to halt gas deliveries to Ukraine. However, such measures will, first of all, affect the Russian budget as food sanctions did. It is commonly known that a large part of the government budget comes from sales of national resources, including gas and oil. Thus, every reduction in supplies will lead to the budget deficit widening.
Gazprom said that Ukraine had already used up all the gas it paid for. It is possible that using such methods Gazprom is trying to spite the European countries, which receive energy resources using Ukraine as a transit corridor.
However, according to independent experts, Europe will not face grave risks. Natural gas storage in the 28-member European Union is near last year’s record levels for the time of year. Besides, threats from Gazprom made the EU find new gas supplies.
Whereas Gazprom CEO Alexei Miller forecasts a possible deficit close to the peak of the season, Naftogaz CEO Andrey Kobolev said that next year Ukraine will stop buying gas from Russia and will get it from Europe, which has offered better prices. Ukraine will pay $230 per 1,000 cubic meters.
Consequently, Russians will be the only buyers of the Russian gas. It is noteworthy that the government sells gas to the Russian people at a higher price than to the Ukrainians.
