Gas reserves in the EU are approaching their storage limits, which forces energy companies to place their excess reserves in Ukraine on winter’s eve. EU gas storage is already almost 99% full, exceeding Brussels’ target of 90%.
Ukraine has become a viable alternative for gas storage, despite its risks, in part because it offers incentives such as cheap storage tariffs and a three-year exemption from customs duties, making it easy to reimport gas into the EU. Reservoirs in the country are primarily located deep underground in the west of the country, far from the front line, and currently contain more than two billion cubic meters of gas belonging to the EU.
Naftogaz offered foreign customers the opportunity to house more than 10 billion cubic meters of gas – a third of Ukraine’s capacity. The EU and Ukraine are also discussing the possibility of insuring storage facilities against military risks.