Russia’s Gas Supply to Europe Remains Stable Before Ukraine Transit Deal Ends

Russia continues to send stable volumes of natural gas supply to Europe via Ukraine, a month before the deal for transiting the gas via Ukrainian territory expires on December 31.

Gazprom is sending 42.4 million cubic meters (mcm) of gas to Europe via Ukraine today, according to the Russian gas giant quoted by Reuters.

These are the same volumes as Gazprom sent yesterday, and roughly the same as it has sent to Europe since it cut off supply to Austria’s OMV in the middle of November.

Russian gas supplies via Ukraine have not changed since Gazprom cut off Austrian energy company OMV. The Austrian firm said earlier this month that it would seek enforcement of the award it won against Gazprom in an arbitration dispute over Russian gas supply.

The EU gas market has been on edge since OMV said two weeks ago it was awarded $243 million (230 million euros), plus interest and costs, in an arbitration case against Gazprom’s irregular German gas supplies and take “the necessary next steps to enforce the arbitral award with immediate effect.”

As a result, Gazprom halted supply to OMV, but other customers in Austria continue to receive Russian gas.

This week, nominations for Russian gas supply to Austria, Slovakia, and the Czech Republic have remained stable, according to data from system operator Eustream compiled by Reuters.

These supplies could sharply end a month from now. That’s when the gas transit deal for Russian flows to Europe via Ukraine expires on December 31, 2024.

Ukraine has said multiple times that it would not pursue talks about renewing the agreement with Russia.

Gazprom itself is assuming in its internal planning for 2025 that it will not be sending gas to Europe via Ukraine as of January 1, a source with knowledge of the Russian gas giant’s plans told Reuters earlier this week.

By Tsvetana Paraskova for Oilprice.com

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