A Bird’s Eye View: Ukraine
In-Depth Series by Back to Facts

Part I: Energy Crossroads, Gas Storage Titan

By Tatiana Prophet

Ukraine is a vital crossroads for natural gas, from Asia and Russia to Europe. Ukraine has always been a crossroads, with access to the Mediterranean via the Bosphorus Strait at Istanbul. It has one of the largest gas transit networks in the world. It also has tremendous storage capacity, as large as all of Europe and more available due to a relatively small domestic demand. The gas networks are used heavily in the winter.

Further, international storage fee contracts are traded in U.S. dollars, making Ukraine almost as important as a Middle Eastern country for its role in the energy sector. And gas storage futures are a big business on the New York Mercantile Exchange.