'Disaster' if Russia cuts gas supply to Europe, Putin 'a bully': Ukrainian energy giant CEO

Europe gets a third of its natural gas from Russia and much of it passes through Ukraine. Cutting off supply in the winter -- when millions use natural gas to heat homes -- could be a disaster, says the CEO of Ukraine's largest oil and gas company.

“He is, I would say, a bully,” Vitrenko said, describing Russian President Vladimir Putin. “Alpha.”

Vitrenko, speaking from an ultra-modern corporate meeting room with a panoramic view of the Ukrainian capital, said he was trying to collect billions of dollars from Gazprom, Russia’s state-owned gas company. He eventually got paid.

The energy relationship between the two countries is deeply embedded and lucrative. Some might even find it surprising: business with the enemy. Every year, Russia pays Ukraine’s US$2 billion in so-called “transit fees” for the ability to transport its product through Ukrainian pipelines. Ukraine doesn’t use that oil and gas. But much of the rest of Europe does. The European Union gets about a third of its natural gas from Russia. And about a third of that passes through Ukraine.

Amid the intensifying standoff between Russia and Ukraine, there is growing fear Putin could turn off the taps, and choke off supply to Europe, which has been standing by Ukraine diplomatically and militarily through NATO, as Russia reinforces its border with more than a 100,000 troops.