Russia: European Demand for O&G May Flag

A Russian deputy economy minister said on Tuesday that he did not rule out weaker European demand for Russian oil and gas due to tension over Ukraine.

Andrei Klepach also told reporters that Ukraine is likely to reduce Russian gas purchases this year to 20 billion cubic metres, from 25.8 billion in 2013, because of difficulties paying for deliveries.

"This is not (a result of) sanctions, but one may anticipate a certain decrease in demand for our hydrocarbons both from Ukraine and from European countries," he said.

(Reporting by Darya Korsunskaya; Writing by Vladimir Soldatkin; Editing by Steve Gutterman)