Written question asked by Mark Simmonds (Conservative) on Wednesday, 8 December 2004, in the House of Commons. It was due for an answer on Wednesday, 15 December 2004. It was answered by Mike O'Brien (Labour) on Wednesday, 15 December 2004 on behalf of the Department of Trade and Industry.

Dept of Trade and Industry

Question: To ask the Secretary of State for Trade and Industry, what assessment she has made of the impact on the (a) UK (i) domestic consumption and (ii) economy and the (b) EU (A) domestic consumption and (B) economy of supplies of oil and gas which pass through Ukraine being stopped or interrupted - (Holding answer 13 December 2004).

Answer: Mr. Simmonds: To ask the Secretary of State for Trade and Industry what assessment she has made of the impact on the (a) UK (i) domestic consumption and (ii) economy and the (b) EU (A) domestic consumption and (B) economy of supplies of oil and gas which pass through Ukraine being stopped or interrupted. [204382] Mr. Mike O'Brien: [holding answer 13 December 2004]: I am watching the situation closely. Although Ukraine is a transit state for gas supplies from Russia into the EU, there is significant gas storage capacity in the EU; in the short to medium term, therefore, there should be little impact on the availability of gas to final consumers in the EU or the UK The Ukraine is also an important transit state for oil supplies from Russia into the EU. There are no reports that these supplies have been disrupted. If, however, supplies were disrupted for a prolonged period a combination of increased production from other producers, relatively high EU industry oil stock levels, and, if necessary, the coordinated release of emergency oil stocks by International Energy Agency members would limit the impact on the availability of oil products to final consumers in the EU and UK. These measures would also limit the impact of any disruption on the oil price.

Secondary information