Russia suggest Gas shortages could be a real issue for the EU
Russia seems to be flexing its power once again. The country has stated there could be a shortage of gas for the region including Ukraine, suggesting that Ukraine will need to siphon off gas supplies from the main supply to Europe in order to avoid its own supply shortage.
Russia has stated that the Ukraine`s reserves have reached a critical point. The country has stated that the Ukraine needs to store more gas underground in order to avoid a shortage. If a shortage did occur then the Ukraine would need to use gas from the transit pipelines in order to meet the shortage, however this would directly affect the EU`s own supply.
It is not the fast time the gas supply to the EU and Ukraine has come into the spotlight, in June Russia stopped its supplied to Ukraine over a price dispute. The EU was still able to receive large volumes from Russia even when this dispute was at its peak.
Many European countries rely heavily on Russian gas supplies, the main supplier in Russia is Gazprom, a state owned company.
Gas supply security is the main priority for the EU, and is probably one of the main reasons why no military action from the EU or UN has really taken place in Ukraine. Russia currently holds the ace card in terms of supply to the EU and with winter rapidly approaching, there seems to be very little the EU and USA can do about the situation.
The latest sanctions from the EU will hit the oil industry hard but not the gas sector which is vital for the EU.