The EU is thinking about how to use Ukrainian storage facilities for its own gas in case of a sudden increase in demand and prices during winter.

As Bloomberg reports, EU sites are already edging close to capacity — currently more than 70% full — storing the fuel in Ukraine could prevent a glut in the coming months. Europe's storage sites are expected to reach capacity limits as soon as early September.

This initiative is part of efforts to avoid the that led to record prices and state intervention last year.

"Storing vital fuel in a country subjected to missile strikes and attacks on critical energy infrastructure may sound like a crazy idea. But it's winning backers as the facilities are far enough from the front line to be deemed safe, and some traders reckon it’s worth the risk," Bloomberg reports.

European officials are now contemplating whether to support links to Bilche-Volytsko-Uherske and other facilities scattered across Ukraine — home to the continent's biggest network of underground caverns that can hold gas for when demand and prices spike in the winter. With EU sites already edging close to capacity — currently more than 70% full — storing the fuel in Ukraine could prevent a glut in the coming months.

"Ukrainian storage can help to balance supply and demand during the second half of the summer 2023, given their excellent connection to EU gas markets," German utility RWE AG, which has used Ukraine’s storage in the past, said in a statement to Bloomberg.

Ukrainian gas storage capacity — located in relative safety as much as 2 kilometers below ground — totals more than 30 billion cubic meters. Operator Ukrtransgaz is making available a third of that space — equivalent to about 10% of the EU's fourth-quarter demand last year.

With the insurance industry steering clear of Ukraine, the extent to which traders are willing to stockpile gas in Ukraine depends on pricing and whether the EU is prepared to provide a backstop.

In April, it was reported that "Naftogaz" was ready to offer Europe volumes in gas storage facilities sufficient to store 10 billion cubic meters of natural gas.