Ukrainian MP on oil and gas transit from Russia: If Moscow is at loss, then it can be discussed
Photo: Andrii Herus (Vitalii Nosach, RBC-Ukraine)
The decision to halt oil transit through Ukraine should be made alongside other restrictive measures against Moscow. There is a possibility that this oil will still be exported from Russia, states the head of the Verkhovna Rada Committee on Energy and Housing and Utilities Services, Andrii Herus, in an interview with RBC-Ukraine.
Herus stated that 15 million tons of oil transited through Ukraine in 2023, 13 million tons in 2024, and 9 million tons are expected in 2025 due to Czechia’s intention to reduce its purchases.
“It is important for us that these 9 million tons not only stop passing through our territory but are completely removed from Russia’s export volumes,” he said.
According to him, there is a good example regarding gas. “We stopped the transit, but what happened with Russian LNG? In 2024, it reached a record high and even more is going to France, Spain, and Belgium. So, when we ban transit, this product still finds its way into Europe through other routes, and Russia still receives revenue, while we are forced to raise the gas transportation tariff,” the MP added.
Herus supports halting the transit but emphasizes that it is critically important to prevent this oil from reaching the markets through alternative routes.
“If we reduce transit by 9 million tons (of oil), but somewhere else there’s an increase of 9 million tons, the result is mediocre… That’s why, in my opinion, such decisions need to be made in sync with the restrictive or sanction measures of our partners, as this would have the best effect we desire. And it is extremely important to form a joint position with the EU/European Commission,” he said.
Herus noted that Russia produces a total of 530 million tons of oil, exporting over 200 million tons. The majority of Russia’s market is China and India, and it could expand. “There is an opinion that these 9 million tons, which are negligible for Russia, will be redirected for export via another route, if not fully, then for the most part,” the committee head explained.
Oil transit
The transit of Russian oil through Ukraine’s pipeline system decreased by 15% in 2024 to 11.5 million tons (230.3 thousand barrels per day).
By the end of 2024, the average price of Russia’s Urals oil used for tax calculations is estimated at $67.85 per barrel. This means Moscow earns $15.6 million per day or about $5.7 billion per year.
Russia received a similar amount (around $5 billion) from gas transit through Ukraine to Eastern European countries. However, Kyiv refused to extend the contract, which expired on January 1, 2025.
