Europe’s oil capital is a victim of the sharp drop in oil prices since last year

Naftogaz's role is the creation of an efficient gas market in Ukraine.

Despite Europe’s desire to loosen its reliance on Russian gas, the shale revolution has turned out to be a dud. Difficult geological conditions, fierce environmental opposition, cumbersome regulations and a bloody war in Ukraine have conspired to quash investors’ enthusiasm and wear down their patience. The collapse of oil prices to less than $50 a barrel in March was the final straw because the cost of much of Europe’s gas, including Russian imports, is linked to crude.

The crisis in Ukraine highlighted the need for Europe to tighten energy links among member states and cut its dependence on Russia, which supplies 27% of the bloc’s natural gas. To ensure that intergovernmental agreements with Russia don’t breach EU law, the regulator should vet their content during negotiations and not just before deals are adopted.

It is not economically feasible to start exporting gas to Europe, an Iranian energy official dealing with the international affairs and contracts announced.

Iran’s Oil Minister Bijan Namdar Zanganeh will visit Germany on May 7th after a large German economic delegation of more than 100 businessmen arrived in Tehran in late April to spur bilateral ties.

The gas war between Russia and the West has been limited to the verbal so far and not seen any casualties except for the cancellation of the South Stream project.

Imports from the European Union (EU) will drop because Russian gas is now competitive, according to state-run NAK Naftogaz Ukrainy. Flows from Slovakia, the EU’s biggest supplier to Ukraine, may fall by a quarter from May, Tomas Marecek, the chairman of Slovak grid operator Eustream, said.

Russian natural gas accounts for roughly a third of all foreign supplied natural gas coming into Europe. Russia’s biggest partner is Germany. In that state, Russia’s presence is on the upswing.

OAO Gazprom says antitrust allegations by the European Commission regarding territorial restrictions and an unfair pricing policy are “unsubstantiated.”