Gas prices in Europe soar amid news from Russia’s Kursk region
Illustrative photo (Getty images)
Gas prices in Europe have soared to their highest level this year following reports that Ukrainian forces have allegedly seized a key gas transit point in Russia's Kursk region, according to Bloomberg.
Benchmark futures surged 4.8% to €38.45 a megawatt-hour, the highest level since December.
Bloomberg cites a report by the Russian military blog Rybar suggesting that Ukrainian troops had taken control of a gas intake point near the city of Sudzha. "The claim couldn’t be independently verified", Bloomberg noted
Russia’s state-controlled Gazprom PJSC declined to comment, as did the Ministry of Defense of Ukraine and the General Staff of the Armed Forces of Ukraine.
The Sudzha station is part of the sole pipeline through which Russian gas flows to Europe via Ukraine.
Although Europe has been making efforts to reduce its reliance on Russian gas transported via pipeline, a potential disruption in supply would still be a shock, causing prices to rise for consumers and industry alike. Europe has not imposed sanctions on Russian gas, and some parts of the continent remain dependent on it, the agency reminds.
The operator of Ukraine's gas transmission system reported in its daily update that flows on Thursday would be within the norm. Nominations, which indicate supply levels, can change, but actual deliveries may vary. Earlier, Gazprom's daily update stated that flows were at normal levels on Wednesday.
“The gas flow is stable, no changes. If Ukraine wanted to stop the flow it could do it without capturing Sudzha, ” said Serhii Makohon, former chief executive of Gas TSO of Ukraine, which runs the network.
It's worth noting that on August 7, following reports that Ukrainian forces allegedly took control of the gas measurement station Sudzha in Russia's Kursk region, the GTS Operator of Ukraine stated that the transit of Russian gas through the Ukrainian gas transportation system was proceeding normally.
Fighting in the Kursk region
In Russia's Kursk region, combat between Russian forces and what the Russians claim is the Ukrainian army, allegedly breaching the border, has been ongoing for the third day. The Ukrainian side has not yet officially confirmed the involvement of the Ukrainian Armed Forces in these events.
The Institute for the Study of War (ISW), citing published geolocation footage, reports that Ukrainian armored vehicles have advanced to positions in Russia's Kursk region, about 10 kilometers from the international border.
For more details on the situation, see RBC-Ukraine's article "What is purpose behind breach in Kursk region and why is General Staff silent?"
