Ukrainian gas storage will be useful to European traders as the transit contract between Ukraine and Russia comes to an end.

According head of Naftogaz Oleksiy Chernyshov, Ukraine already has enough gas to meet its own needs, so storage facilities may be available to the EU, which seeks to preserve its reserves ahead of winter. Last year, this option was critical for the EU, as traders pumped 2.5 billion cubic meters of gas into Ukrainian storage, saving them from the need to sell excess reserves with multibillion-dollar losses.

“Currently, the injection volume has decreased,” said Chernyshov, noting that traders are not storing much gas, as no price jump is expected this winter. However, in recent months Ukrainian gas storage facilities have become a target of Russian strikes.

Experts note that this can scare away traders. However, using additional storage capacity is likely to prove beneficial – especially if the agreement allowing Russian gas to transit through Ukraine to EU countries such as Slovakia and Hungary expires at the end of this year. Then gas from Ukrainian PSG will calm the market.