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Fears of disruption to supplies have driven up European prices
Gazprom’s flows via Ukraine have so far remained stable
Russia and Ukraine intend to keep pipeline gas flowing to Europe even as fighting continues near a key cross-border transit point for the fuel.
Both sides have no intention of halting flows via the Sudzha gas-intake station in Russia’s Kursk region, people with knowledge of the matter said, asking not to be identified due to the sensitivity of the information.
Ukraine’s biggest incursion into Russian territory since the Kremlin invaded its neighbor in 2022 has pushed European gas prices to the highest this year amid fears supplies will be disrupted. 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.
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.
Yet any accidental damage to key infrastructure at the gas-intake station could halt supplies, one of the people said. The cross-border point has been under control of Ukrainian troops following the incursion, two people said.
Russian supplier Gazprom PJSC didn’t respond to requests for comment on plans on future flows. Ukraine’s Energy Ministry declined to comment.
“We intend to continue to provide gas transportation services within the framework of the agreement,” Ukraine’s Naftogaz said in a statement, referring to a gas transit deal that expires in December.
While most of Europe has sought alternatives to Russian pipeline gas since the invasion of Ukraine, nations such as Austria, Slovakia and Moldova continue to import supplies from Gazprom via Ukraine.
Gazprom continues to send gas to the Sudzha point, with daily flows stable within a range of 37 million cubic meters to around 42 million cubic meters. In the first few days after Ukraine’s incursion there was a small drop in daily flows, reflecting lower requests from European customers.
On Tuesday, gas shipments via Sudzha are set at 42.4 million cubic meters, Gazprom said in a statement. Tuesday’s flows are back to a level last seen on Aug. 6, a day before the first reports of Ukraine seizing the intake point appeared.
— With assistance from James Herron
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