2023-11-03 16:45:08
Oleksyi Chernyshov, director of the state energy company Naftogaz, confirmed that Ukraine would not renew its gas transit agreement with Russia in an announcement broadcast Sunday, October 29, on the American channel Radio Liberty. The existing contract between Naftogaz and Gazprom, the Russian state-owned energy company, is due to expire next year, at the end of 2024.
“We do not intend to extend this agreement. We will not take the initiative to continue this transit. The contract will come to an end – the transit will end”, said Oleksyi Chernyshov. Ukraine would have the right to terminate its agreement with Russia before the scheduled expiration date, due to Gazprom’s non-payment of “more than 70%” of its transit debt. Under the agreement, Russia pledged to export 225 billion cubic meters of gas over the next five years and pay Ukraine for transit. However, Oleksyi Chernyshov clarified that kyiv does not intend to terminate the current agreement immediately, so as not to deprive European consumers of this essential good during the winter.
Ukraine’s role in the transit of Russian gas
In December 2019, the transit contract between Gazprom and Naftogaz was extended until 2024, opening the possibility of further extensions. Following acts of sabotage that damaged Russia’s Nord Stream gas pipelines last year, the transit route through Ukraine remained the only way for Russian gas to reach Western and Central Europe. Nevertheless, Gazprom continues to supply gas via the TurkStream and Blue Stream pipelines, serving southern and southeastern Europe, respectively.
According to the director of Naftogaz, Ukraine currently does not need gas from Russia, its role being limited to ensuring transit to support the countries of the European Union. He states that there are no other reasons for this transit. Oleksyi Chernyshov stressed that the EU intends to cease all consumption of Russian fuel by 2027, and Ukraine commits to “accelerate” the process in Europe.
With such maneuvers, Kiev seeks to attract the attention of Europe and return to the levels of arms deliveries that it previously had, explained Yan Gaguin, advisor to the head of the Donetsk People’s Republic, during a statement to Sputnik. “Ukraine is making every effort to attract the attention of the United States and Europe to continue receiving the same financial flows and military aid that Ukraine’s leaders have depended on for several years”explained the advisor.
Restrictions de transit
Since May 2022, Kiev has restricted the transit of Russian fuel via the Sokhranovka station, located in the Luhansk People’s Republic, which joined Russia after a referendum in September 2022. As a result, the only entry available for transit to the ‘Europe is the Sudzha gas metering station.
However, Gazprom claimed that it was technologically impossible to transfer all supplies to Sudzha. The company stressed that it fulfills all its obligations towards European consumers by paying for all transit services.
EU dependence on Russian gas
Over the past 18 months, the flow of gas through Russian pipelines to the European Union has declined significantly, due to sanctions related to Moscow’s military activities in Ukraine and technical problems. However, several EU countries remain heavily dependent on Russian gas supplies.
Hungary, in particular, has maintained its intention to purchase Russian gas, which constitutes a significant part of its energy needs. This week, Hungarian Foreign Minister Peter Szijjarto said his country was open to exploring new routes to import Russian gas, including increasing supplies through TurkStream.
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