Algeria To Provide Relief To the Mediterranean, But Eastern Europe To Feel The Chill

BMI View: The current cold snap led Russia to cut gas export volumes to Europe over the weekend February 4/5 2012. Although Gazprom has since announced export levels have returned to normal, the current energy crisis caused by the extreme cold weather is unlikely to subside as Russia's continues to struggle to meet domestic energy demand. Alternative suppliers, particularly Algeria, are likely to benefit from the situation and will sell volumes to the Mediterranean market. However, for countries with no direct access to alternative suppliers, such as Ukraine, we see little chance of the situation improving on its own.

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