Russia and Ukraine intend to continue pipeline gas supplies to Europe, despite the ongoing fighting near a key cross-border transit point for the fuel, Bloomberg reports, citing sources, UNN writes.
Details
"Both sides do not intend to stop deliveries through the Sudzha gas receiving station in the Kursk region of Russia," informed sources told the publication.
The newspaper points out that the events in the Kursk region of Russia have led to European gas prices reaching their highest level this year amid fears that supplies will be disrupted. "Nevertheless, both sides have a financial incentive to keep the fuel flowing," the publication notes.
"Ukraine wants to be seen as a reliable partner in Europe, hoping that traders in the region will make more use of its vast gas storage facilities. And it has good reasons to protect its infrastructure, as pipelines that are not used could become targets of military attacks or fall into disrepair, and their repairs would be expensive," the publication says.
However, "any accidental damage to key infrastructure at the gas receiving station could halt supplies," one source said. "According to two sources, the border crossing is under the control of Ukrainian troops.
According to the newspaper, the Russian supplier, Gazprom, did not immediately respond to requests for comment. 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 the gas transit agreement that expires in December.
While most of Europe has been looking for alternatives to Russian pipeline gas since the invasion of Ukraine, countries such as Austria, Slovakia and Moldova continue to import supplies from Gazprom via Ukraine, the newspaper notes.
"Gazprom, as indicated, continues to send gas to the Sudzha point, with daily deliveries consistently ranging from 37 million cubic meters to almost 40 million cubic meters.
While this is slightly lower than the 42 million cubic meters per day that have been shipped in recent weeks, it is noted that this reflects lower European consumer demand.
"Russian supplies through Ukraine should remain within normal limits on Tuesday, according to the so-called nominations or orders published by the Ukrainian grid. Actual deliveries are still subject to change," the newspaper writes.