Ukraine suddenly blocked Russian gas going to Europe

Russian Energy Corporation Gazprom has not received confirmation of the reason for force majeure or any obstacle to the continuation of gas transportation through a transit station in the Lugansk region – RT quoted Gazprom’s statement as saying on May 10, after the operator Ukraine’s OGTSU operator announced that it will stop deliveries starting May 11, due to the presence of “Russians”.

The Gas Transportation Service of Ukraine (OGTSU) declared force majeure on May 10, saying that it was impossible to continue transporting gas through a connection point and compression station located in the Lugansk region. As OGTSU employees “were unable to exercise operational and technological control” over the Sokhranovka connection point and the Novopskov compressor station, the company was unable to continue to fulfill its contractual obligations, OGTSU said.

Gas from this docking station will not be accepted into the transit system of Ukraine starting at 7 a.m. on May 11, according to OGTSU. The Sokhrankovka station accounts for almost a third of Russia’s gas transit through Ukraine to Europe – up to 32.6 million cubic meters per day.

On May 10, spokesman Sergey Kupriyanov said that Gazprom has not received any confirmation of force majeure incidents or interruptions of operations at Sokhranovka or Novopskov. Kupriyanov added that Ukrainian experts have full access to both stations and have not had any complaints about this before.

Kupriyanov also said that Gazprom has been informed by Ukraine’s Naftogaz gas company that if Russia continues to supply gas through Sokhranovka, Kiev will reduce the exact amount at the exit point – an action no different from gas confiscation. .

While OGTSU proposed rerouting gas to Sudzha, a terminal located in the Sumy region and controlled by the Ukrainian government, Kupriyanov said it was “technologically impossible”. The volume distribution is clearly stated in the cooperation agreement dated December 30, 2019 and the Ukrainian side is also aware of this.

Mr. Kupriyanov pointed out that Gazprom is fulfilling all of its obligations to its European customers, with all transportation services in accordance with the terms of the contract and fully paid. Russia continues to transport gas to Europe, including transiting through Ukraine, regardless of the ongoing military campaign and orders punish Russia imposed by the United States and its allies.

According to Bloomberg, gas price in Europe immediately increased to 8.1 percent on May 10, then dropped and traded at 97.63 euros per megawatt hour at 5.16 pm in Amsterdam. This price is still up 4.1%.

Sokhranivka and Sudzha are two important border crossings between Russia and Ukraine, which receive gas from Gazprom for transit to Europe. As of May 10, 27% of the gas passes through Sokhranivka, the rest through Sudzha.

European gas traders remain in jeopardy despite a recent drop in prices thanks to steady shipments of liquefied natural gas to the region and warmer weather. Last year, Russia supplies about 40% of the European Union’s gas needs, and about a third of that is transited through Ukraine, making Kiev an important link in the energy security of the old continent.