Ukraine's gas reserves reach historic low, raising concerns over energy supply

Ukraine is facing a critical energy shortage, as gas reserves in the country's storage facilities have reached a historic minimum, said Oleh Popenko, head of the country’s Union of Utility Consumers.

Popenko confirmed that gas stocks have dwindled to approximately 10 per cent of their total capacity, a situation he described as a "historical minimum," Caliber.Az reports citing Russian media.

Popenko expressed concerns over the future implications of this severe shortage, noting that while Naftogaz, Ukraine's state-owned gas company, claims no immediate issues, the situation remains dire.

He criticized Naftogaz for failing to purchase gas at lower prices, stating that the company could have acquired gas at $300 per thousand cubic metres but chose not to do so. Now, with prices rising to $550-600, Ukraine will face significantly higher costs. “How much money we will spend additionally because of the inactivity of Naftogaz, which did not purchase gas at $300 in time,” Popenko remarked.

The gas deficit could also lead to restrictions on heating supplies across Ukraine, further exacerbating the energy crisis as the country faces winter.

Popenko also warned that rising energy costs could push up prices for essential goods. At the start of the year, he had already cautioned that food prices in Ukraine could increase by 10-20 per cent due to a significant rise in gas transport tariffs. He explained that the higher gas transport prices would automatically result in increased fuel costs for businesses and consumers.

By Vafa Guliyeva