Russia gas flows via Ukraine could stop
Russia may close one of the last gas transport routes to Europe by the end of next year when Ukraine’s supply contract with Gazprom expires, the Financial Times reported on Thursday, citing an interview with Ukrainian Energy Minister German Galushchenko.
There is little chance that Kiev and Moscow will agree on the renewal of the five-year transit contract, which was first signed in 2019, despite the fact that the route through Ukraine accounts for almost 5 percent of Europe’s total gas imports, the newspaper said. Asked if Ukraine would be ready to renegotiate the deal with Moscow after last year’s invasion, Galushchenko told the FT: “I really can’t imagine how it could be bilateral,” adding that Ukraine was preparing to cut supplies.
Russian gas giant Gazprom warned in April that Europe’s ability to maintain ample gas supplies through the 2023/24 winter depends on demand from Asia, given Russia’s “critically low” supply. European gas prices rose last year when Gazprom threatened to cut off flows to Moldova, as the supply route through Ukraine is the last functioning Russian gas corridor to Europe.
Europe would be relatively prepared for a further drop in supply after previously adapting to similar restrictions by reducing demand and acquiring alternative import sources such as liquefied natural gas (LNG), the energy minister told the FT.
The European Union invested heavily in LNG imports last year and adopted rules to expand storage to stave off potential shortages after Russian gas supplies fell following Moscow’s special operations in Ukraine. Gazprom did not immediately respond to Reuters’ request for comment.
