Daily Management Review

Ukraine Crisis Shuts Russian Gas Route To Europe, Supply Drop By A Quarter


Ukraine Crisis Shuts Russian Gas Route To Europe, Supply Drop By A Quarter
For the first time, shipments of Russian oil and gas via Ukraine have been blocked since the start of the Russian invasion of Ukraine. That has resulted in Russian gas flows to Europe via Ukraine decreasing by a quarter on Wednesday after Kyiv stopped the use of a vital transit route, claiming interference by occupying Russian soldiers.
Even after Moscow launched a "special military operation," Ukraine has remained a crucial transit route for Russian gas to Europe. Around 8% of Russian gas shipments to Europe pass through the transit point that has been closed.
Gazprom, which is controlled by the Kremlin and has a monopoly on Russian gas exports through pipeline, said it was still transporting gas to Europe via Ukraine on Wednesday, but volumes were down from 95.8 mcm on Tuesday.
The operator of Ukraine's gas system, GTSOU, announced on Tuesday that gas supplies through the Sokhranivka transit point, which it claimed transported about a third of the fuel pumped from Russia to Europe via Ukraine, would be halted. continue reading
It claimed it was declaring "force majeure," a phrase that applies when a company is impacted by an event beyond its control, and that exports to Europe will be diverted to another route, the largest of Ukraine's two crossing points, Sudzha.
The Sokhranivka point of the gas pipeline travels through Ukraine's Luhansk region, which is controlled by pro-Russian separatists in part. Sudzha is located to the north-west.
On Tuesday, Gazprom stated that shifting all volumes to the Sudzha line, as requested by GTSOU, was "technologically impossible."
According to data released by Gazprom on Wednesday, only Sudzha was used. The number of nominations for Russian gas via the Sokhranivka entry point on May 11 fell to zero, according to GTSOU data.
According to statistics from Slovakian operator TSO Eustream, daily nominations for Russian gas supply to Slovakia via Ukraine declined on Wednesday. The statistics showed that on Wednesday, nominations via the Velke Kapusany border point were roughly 717,923 megawatt hours (MWh) per day, compared to about 883,844 MWh per day on Tuesday.