Ukraine and Russia to maintain gas supplies despite fighting in Kursk region
Photo: Gas supplies will continue despite Ukraine gaining control of the Sudzha GMS (Getty Images)
Russia and Ukraine intend to continue pipeline gas supplies to Europe despite ongoing combat near the key cross-border transit point of Sudzha, according to Bloomberg.
"Both sides have no intention of halting flows via the Sudzha gas-intake station in Russia’s Kursk region," according to informed sources who wished to remain anonymous due to confidentiality.
Ukraine's largest attack on Russian territory since the Kremlin's invasion of the neighboring country in 2022 has driven European gas prices to peak levels amid fears of supply disruptions.
"Yet both sides have a financial incentive to keep fuel flowing. For Kyiv, gas transit provides crucial funds for its war-torn economy — amounting to about $1 billion in 2021 — while Europe remains one of Russia’s largest customers for pipeline gas," Bloomberg notes.
"Ukraine is keen to be seen as a reliable partner to Europe in the hope the region’s traders will make more use of its vast gas storage facilities. And it has good reason to protect infrastructure since unused pipelines could become targets of military attacks or fall into disrepair, which would be costly to fix," the agency adds.
Yet, any accidental damage to key infrastructure at the metering station could halt supplies, one source said. According to two individuals, the crossing point is under Ukrainian military control following the invasion.
Russian supplier Gazprom PJSC didn't immediately respond to requests for comment. The Ukrainian Ministry of Energy declined to comment.
“We intend to continue to provide gas transportation services within the framework of the agreement,” Ukraine’s Naftogaz (largest national oil and gas company) said in a statement, referring to a gas transit deal that expires in December.
While much of Europe sought alternatives to Russian pipeline gas following the invasion of Ukraine, countries like Austria, Slovakia, and Moldova continue to import Gazprom supplies via Ukraine.
Maintaining volumes
Gazprom continues to deliver gas to the Sudzha point, with daily supplies consistently ranging from 37 million cubic meters to nearly 40 million cubic meters. Although this is slightly below the 42 million cubic meters per day supplied in recent weeks — before the Ukrainian invasion — this reflects reduced demand from European consumers.
Russian flows through Ukraine are expected to remain within the norm on August 13, according to the so-called nominations or orders published by the Ukrainian network. Actual supplies may still vary.
It is worth noting that fighting in the Kursk region has led to Russia losing control of the Sudzha gas metering station. This is the only entry point through which Russian gas is transited to Europe.
The contract between Russia and Ukraine for gas transit expires at the end of 2024. Volodymyr Omelchenko, Director of Energy Programs at the Razumkov Centre, does not rule out that Russia may decide to cut off transit prematurely following the loss of the station.
