Ukraine transit operator says Russia has not nominated fuel volumes for Jan. 1 to this point

(Reuters) – Ukraine’s fuel transit operator mentioned Russia had not nominated any fuel flows for Jan. 1 by way of the Ukrainian pipeline to Europe as of 1500 GMT on Tuesday, hours forward of the expiration of a five-year contract between Gazprom (MCX:GAZP) and Ukraine’s Naftogaz.

Regardless of being at struggle with Russia, Ukraine nonetheless transited Russian fuel to Europe by way of pipes on its territory below the phrases of a deal signed in December 2019.

    Ukraine has repeatedly mentioned it won’t signal a brand new deal to exchange the one expiring on Dec. 31 attributable to Russia’s full-scale invasion of its territory, now approaching its third yr.

    2025 might show to be the primary yr because the collapse of the Soviet Union in 1991 when no fuel shall be transported by way of Ukraine to Europe.

    Russia used to produce a bit of below half of the European Union’s fuel earlier than the 2022 struggle. However Europe has turned away from Russian fuel whereas as but unexplained assaults on the Nord Stream pipeline have diminished Russian provides.

    Russia provided a complete of round 63.8 billion cubic meters (bcm) of fuel to Europe by varied routes in 2022, in response to Gazprom knowledge and Reuters calculations.

That quantity decreased by 55.6% to twenty-eight.3 bcm final yr. In 2024 transit might whole lower than 14 bcm of fuel.

    At their peak in 2018-2019, annual flows to the European area reached between 175 bcm and 180 bcm.

    In pre-war years Ukraine obtained a number of billion {dollars} a yr from transit, however in 2024 the funds might  drop to about $800 million attributable to a major discount in pumping volumes. 

    The Soviet-era Urengoy-Pomary-Uzhgorod pipeline brings fuel from western Siberia by way of Sudzha in Russia’s Kursk area. It then flows by way of Ukraine within the path of Slovakia.

    In Slovakia, the fuel pipeline is split, with one of many branches going to the Czech Republic and the opposite to Austria. The principle patrons of fuel are Hungary, Slovakia and Austria.