Read NV on Google
Kyiv will not enter into negotiations with Moscow to renew the gas transit contract to Europe expiring in 2024, said Ukrainian gas transit system (GTS) operator official, Andriy Prokofiev on April 23.
"Ukraine will not offer any capacities for auctions," Prokofiev stated at the Flame conference, signaling a firm stance against continuing the existing arrangement.
The European model for booking gas transit capacity involves its distribution through auctions rather than long-term contracts. According to some booking platforms, the next booking auction for 2025 in the European industry calendar is scheduled for July 1. In addition, capacity can be offered at quarterly, monthly and daily auctions.
Ukraine and Gazprom signed an agreement on the transit of Russian gas to Europe in late 2019. It is valid until Dec. 31, 2024, under the “use it or pay” formula. Gazprom is obliged to pay for the transportation through the Ukrainian GTS not less than 40 billion cubic meters in the years 2021-2024, regardless of the actual volumes of gas delivered.
On Dec. 20, 2023, the European Commissioner for Energy Kadri Simson said that the EU was taking proactive measures in anticipation of the cessation of Russian gas transit through Ukraine and urged member countries that still depend on Russian gas to brace for market changes and commence reductions in consumption volumes.
According to the report by the Center on Global Energy Policy, even if some deliveries continue after 2024, it is unlikely that the existing transit agreement will be extended on similar terms due to the lack of political support.
In 2023, the Russian natural gas transit through the Ukrainian GTS decreased by 28.4% (by 5 billion 812.6 million cubic meters) compared to 2022, to 14 billion 646.6 million cubic meters, according to the data of the Ukrainian GTS operator.
In January 2024, it was reported that Gazprom had already received a trillion rubles in net losses.
The military war may be swinging in our favor, but the information war continues.
Just as an army needs soldiers, so does a free society need its journalists to ensure that people have access to honest, trustworthy voices to understand the world around them.
For the past five years, The New Voice of Ukraine has been working tirelessly to push back against Russian narratives and defend democracy. But we cannot do it alone.
Please consider supporting us on Patreon for just $5 a month – your donation does directly to supporting journalists and ensuring that this front of the infowar says solid and defended.
Thank you.
Follow us on Twitter, Facebook and Google News
