FSUOGM: Russian attacks deter European gas traders from Ukrainian gas storage

European gas market analysts are intensively monitoring Ukrainian energy storage amidst ongoing attacks on infrastructure by Russia and less attractive financial spreads compared to the previous year.

Since the outset of March, the onslaught on Ukraine's energy facilities has intensified, with various attacks orchestrated by Russian forces. "It is just too sudden and unpredictable for me," stated a trader from the Netherlands, highlighting the volatile nature of the crisis in Ukraine.

Russian President Vladimir Putin, in a dialogue on April 11 with Belarusian President Lukashenko, acknowledged the military actions. "We sadly watched a series of attacks on our energy infrastructure and were forced to respond," Putin admitted.

In addition to storage units, Ukraine's gas production capabilities have also suffered from frequent shelling and power disruptions. Despite these challenges, Naftogaz's upstream division, UkrGazVydobuvannya, reported a commendable 12% year-on-year increase in production in the first quarter of 2024.

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