World

Fitch explains why Ukraine in no hurry to buy liquefied gas from US

09:08, 14 September 2020 10
Photo: Stefan Sauer/dpa/Global Look Press

Ukraine’s purchases of liquefied natural gas from the US cannot be permanent due to the lack of the necessary infrastructure, said Dmitry Marinchenko, a senior director in Fitch Ratings’ Natural Resources & Commodities team, based in London, RIA Novosti reports.


Ukraine doesn’t have the infrastructure to buy LNG directly, which will make it more expensive compared to virtual reverse flow. Some one-time deals are possible, but Ukraine is unlikely to purchase liquefied gas from the US systematically, the expert noted.

Kyiv has completely switched to a virtual reverse flow of Russian gas.

Marinchenko believes that in theory, direct purchases of gas from Moscow could become an even more profitable option for Kyiv.

Now, after the conclusion of the transit agreement, relations between Gazprom and Naftogaz are generally constructive, it cannot be ruled out that the parties will eventually switch to direct purchases, but political considerations may hinder this: the topic of gas supplies in Ukraine remains highly politicized, he said.

NEWS.ru earlier reported that Russia’s energy giant Gazprom filed appeals with a Polish court against the actions of the Polish Office for the Protection of Competition and Consumers.