Russia's attacks on energy infrastructure destroyed more than half of Ukraine's domestic natural gas production. Kyiv may have to spend 1.9 billion euros on fuel imports to get through the heating season, writes Bloomberg.
Earlier this week, Ukrainian authorities told allies that massive Russian shelling of the Kharkiv and Poltava regions on October 3 had destroyed approximately 60% of gas production.
Ukraine’s gas infrastructure, which was capable of meeting domestic demand until Russia’s full-scale invasion, has been under increasing missile and drone attacks since the beginning of this year. If the attacks continue, Ukraine expects to need to purchase an estimated 4.4 billion cubic meters of gas, worth almost 2 billion euros, by the end of March. This is equivalent to almost 20% of the country’s annual consumption.
Following the recent strikes, Ukraine has urgently appealed to G7 partners for equipment to restore its energy system and financial support to pay for necessary gas imports. Kyiv has also reiterated that it still needs additional air defense systems to protect its energy infrastructure.
Ukraine has purchased 4.58 billion cubic meters of gas from foreign suppliers since the beginning of this year, including 3.67 billion since the end of the last heating season. While official Kyiv estimated that the country's import needs would reach 5.8 billion by the end of this year, it told allies earlier this week that this figure could increase due to Russian attacks.
The exact amount of gas Ukraine needs will depend on a number of factors, including the speed of repairs to damaged facilities and the impact of future air strikes. The bill for emergency energy repairs is estimated at around €758 million.
The publication writes that the European Bank for Reconstruction and Development, the European Investment Bank, and the European Commission are already considering the possibility of providing additional assistance to Ukraine's energy sector.
The gas situation in Ukraine on the eve of the heating season
Minister of Energy Svitlana Grinchuk reported that Ukraine is currently negotiating to expand gas imports by approximately 30%, which is 1.38 billion cubic meters.
President Volodymyr Zelensky also stated that gas prices for household consumers in Ukraine will remain unchanged, and residents of frontline communities will not be disconnected from energy supply.
