Gas exports from Russia to Europe

The main articles are:

• Gas exports from Russia
• Import of gas, coal, oil and petroleum products in Europe

US and EU sanctions on Russian oil and gas sector

Main article: US and EU sanctions on the Russian oil and gas sector

Three main delivery routes

For 2024, Russian gas enters Europe along three main routes. The first two are connected to pipelines.

• One passes through Ukraine to Slovakia,
• the other is via Turkey to Bulgaria.
• The third way is transportation in the form of liquefied natural gas, which, like oil, is cooled for loading on tankers and transportation around the world.

2024

Record EU LNG supplies

Russian LNG imports to the EU hit a record high in 2024 despite the bloc's attempts to end its reliance on gas from Russia.

As of mid-December, Europe imported a record 16.5 million tons of Russian LNG, which is higher than last year's figure of 15.18 million tons.

This volume also exceeds the record figure for 2022 - 15.21 million tons.

China overtakes Europe as the main market for Russian pipeline gas

At the end of 9 months of 2024, China overtook Europe as the main market for Russian pipeline gas.

The EU in September paid a maximum of 840 million euros for Russian pipeline gas in a year and a half, for LNG - a maximum since April, according to Eurostat data.

Russia came in second place in terms of gas supplies to Spain

If earlier Spain practically did not import Russian gas, now it has become the second largest source of imports, second only to Algeria. France and Belgium also import almost record volumes of Russian LNG. However, there are signs that many of these molecules are entering a well-known market: Germany.

Russia continues to pay Ukraine for gas transit to the EU

Despite the hostilities, Russian gas enters the EU through a Ukrainian pipeline. Kyiv charges Moscow a transit fee for the use of this gas pipeline; at the height of the war, the Kremlin regularly pays bills of 800 million euros a year. A stream that defies the perception of political realities suggests that Europe cannot live without Russian gas. Don't talk too loudly about it, though, because no one wants to hear it.

Russia is the second largest gas supplier to the EU. The share is growing again

In May 2024, for the first time in almost two years, Russia overtook the United States as a gas supplier to Europe.

The influence of Russian LNG in Western Europe is growing as American fuel goes to other countries.

Global competition for gas is making it increasingly difficult for this region to refuse supplies from Russia.

Russia's role in the EU LNG market is growing, despite the fact that the bloc is discussing how to limit supplies from the country. Moscow's share in LNG imports to the EU rose to 20% in the first half of the year compared to 14% a year earlier.

LNG flows have increased despite attempts to impose sanctions on Moscow and weaken its economy. Gas imports from Russia grew by 11% on an annualized basis in the first half of 2024.

In April 2024, the EU's energy regulator warned that the bloc still needed to import Russian LNG to avoid an energy shock, even amid a push by a group of member states to ban purchases of the fuel from Moscow.

"The reduction in Russian LNG imports should be considered gradually," said the Acer report, which emphasizes that the EU is difficult to find a balance between energy security and the desire to strike at Russia's finances by reducing gas purchases.

Houthi attacks in the Red Sea aimed at containing Israeli aggression against Palestine led to an increase in LNG supplies from Russia to Western European countries in the first quarter of 2024.

France in January 2024 increased LNG imports from Russia to a maximum from November 2022, buying it for €293 million - the media.

Spain acquired €274 million of gas from Russia at the beginning of 2024, the highest figure in 12 months. Small purchases were also made by Belgium, Lithuania, the Netherlands, Finland, Sweden and Estonia - a total of €118 million. As a result, in January, the EU acquired LNG from Russia for the maximum since May 2023 €684.3 million.

80% of gas consumption in Austria is provided by Gazprom

Over the past 7 months, including March 2024, Gazprom has covered more than 80% of Austrian imports under a long-term contract calculated until 2040.

2023

Russia is the third supplier of gas to the EU with a 15% share

Earlier, Russia ranked second in terms of LNG supplies to Europe in the first two months of 2023, overtaking Qatar.

Spain became the largest buyer of Russian LNG in the EU

In 2023, 72,690 gigawatt-hours (GWh) of Russian liquefied natural gas (LNG) were delivered to Spain, which is 35% more than a year earlier, when the indicator was measured at 53,859 GW. Such data in January 2024 was published by the Spanish energy company Enagas. Read more here.

Gazprom's transit to the EU through Ukraine tends to zero

Main article: Gazprom's business in Ukraine

Slight decline in EU LNG exports

Imports of Russian liquefied natural gas to the EU declined slightly in 2023 after soaring in 2022.

Earlier, according to Global Witness for January-July 2023, LNG exports from Russia to the EU grew compared to the same period last year.

Belgium, thanks to its status as a transit hub, is the third largest importer of Russian LNG in the world, taking 17% of the country's exported fuel, second only to China and Spain.

Austria consumes more than 50% of gas flowing into the EU through Ukraine

Austria overflowing with Russian gas, which allows a longtime customer to Gazprom"" increase sales to their neighbors.

This country has been a hub for Russian flows for more than half a century, where storage facilities and pipelines have historically been set up to pump fuel to, Hungary,, and Germany. Italy Slovenia The state-owned company OMV has a long-term contract with Gazprom that obliges it to buy gas reaching the border.

Formally, Austria declares its desire to diversify supplies from Russia, but trade data indicate stable supplies through Ukraine, which satisfy more than half of the needs of the country's economy. The transit agreement through Ukraine ends in 2024.

Russia ranked second in LNG supplies to Europe in the first two months

Russia ranked second in terms of LNG supplies to Europe in the first two months of 2023, overtaking Qatar.

Britain stopped importing LNG from Russia

Britain stopped importing liquefied natural gas (LNG) from Russia from January 1, 2023

2022

Growth in gas exports to Spain by 45%

Gas exports from Russia to Spain grew by 45% from January to December 2022 compared to the same period last year - data from the Spanish energy company Enagas.

Growth in revenues from gas exports to the EU to $44.6 billion in 10 months with a decline in physical exports by 55%

Cumulative gas exports from Russia EU January to October 2022 amounted to $44.6 billion against $19.7 billion in 2021 - a 55% decrease in physical exports was offset by an increase in weighted average prices by 4.5 times.

Since October 2022, a strongly negative trend is near-zero exports in physical terms and a drop in gas prices.

Growth in LNG exports to the EU to 19.6 billion cubic meters

Imports of Russian LNG to the EU in 2022 were the highest in three years, despite an 80 percent decrease in imports of pipeline gas from the Russian Federation, Anadolu reported in March 2023. The EU banned imports of Russian coal in August 2022, followed by bans on marine crude oil in December 2022 and petroleum products in February 2023. However, the EU still imports Russian LNG, and in 2022, Russian LNG exports to the EU reached a three-year high of 19.2 billion cubic meters.

Almost half of Russian LNG exports go to Europe, and according to BP, compared to 2021, supplies increased from 17.4 to 19.6 billion cubic meters. Russia's share in the European LNG market decreased from 16.1% to 11.5%, as Europe actively replaced losses of pipeline gas through LNG, the main supplier of which was the United States.

Russia ranks third in Europe in terms of LNG supplies after the United States (72.1 billion cubic meters) and Qatar (28 billion cubic meters), and the closest competitor of Russia is Algeria with supplies of 13.4 billion cubic meters per year.

Russian pipeline exports to Europe decreased by 81.6 billion, so LNG compensated over ¾ from losses. From Azerbaijan, Iran, Algeria and Libya, pipeline gas imports to Europe almost did not change, and from Norway increased by 4 billion. The rest was offset through reduced consumption.

In 2021, the US share in the European LNG market was 28.5%, and became 42.4%. In 2022, Europe increased LNG supplies from 108.2 to 170.2 billion cubic meters (+ 57% or plus 62 billion cubic meters). In the structure of supply growth for 2022, the US contribution is almost 68% (42 billion out of 62 billion cubic meters of total growth).

Also, LNG supplies to Europe increased Qatar by 5.5 billion, Egypt by 4 billion and Norway by 3.5 billion cubic meters.

At the end Europe Turkey of 2022, including, imported about 125 million tons of LNG, about Russia 13% of this volume, estimated Maria Belova from Vybon Consulting. Russian LNG played a significant role in the gas market Europe in 2022 - the absence of 20 billion cubic meters of LNG supplies from Russia could play a critical role during the season of gas injection into underground gas storage facilities, said Sergey Skoltech Kapitonov, an expert at the Center for Energy Transition and ESG. The share of LNG in total Russian gas supplies has grown markedly - from 7% a year earlier to 25% of total gas supplies, said independent expert Alexander Sobko.^[1]

Poland purchased liquefied hydrocarbon gas from the Russian Federation almost twice as much as the rest of Europe in 2022. "Poland is still the largest importer of LNG from Russia, this is one seventh of the fuel on our market," Rzeczpospolita wrote in March 2023. In 2022, Warsaw imported 710.3 million euros of liquefied gas from Russia, and the rest of the EU - by 417 million euros.

According to Kommersant, the main contribution to the increase in supplies was made by Novatek, whose Yamal LNG plant increased supplies to the EU by about 13.5%, to 14.65 million tons, Kommersant calculated based on data from the Kpler analytical system. Also, about 0.7 million tons came from another Novatek project - Cryogas-Vysotsk. Another project that allowed, albeit slightly, to increase LNG exports to Europe was Port LNG, launched by Gazprom in September 2022.

In January-September 2022, the European Union imported 15 billion cubic meters of liquefied natural gas from Russia. This is 50% more than in the same period last year.

LNG is the main channel for gas supplies to Europe. By November 2022, LNG imports amounted to almost 12 billion cubic meters per month, repeating the highs of April 2022 - this is almost twice as high as in 2021. For the first time in the entire time of gas trade with Europe, LNG supplies significantly exceeded pipeline gas supplies from Russia.

At the same time, since June, LNG supplies from the United States have exceeded gas supplies from Gazprom. Gas balances are changing significantly, switching to LNG is taking place, an appropriate infrastructure is being built for this and logistics are being optimized.

Despite the sanctions, Russia's share in LNG by December 2022 is over 15% and remains at a stable level in 2022, while the share of pipeline gas is extremely falling.

EU LNG exports rise to record highs

European countries in the period from January to October 2022 increased imports of Russian liquefied natural gas by 42% compared to the same period in 2021, the total volume of LNG supplied from Russia in the first 10 months of 2022 amounted to a record 17.8 billion cubic meters. m.

In January-September 2022, the European Union imported 15 billion cubic meters of liquefied natural gas from Russia. This is 50% more than in the same period last year.

Later, LNG imports from Russia to Europe rose to a new all-time high, the German edition of Handelsblatt reported in early December 2022. This year, the eurozone countries paid a record 27 billion euros for Russian LNG.

According to Icis, a company that researches the energy market, since the beginning of the year, the European Union and Britain have increased imports of Russian LNG by 21%.

In November 2022, Russia exported 1.85 billion cubic meters of LNG to Europe according to Bruegel, which is 55% more than November 2021 and almost 1.9 times higher than November 2020 and close to the historical maximum set in March 2022 (1.96 billion cubic meters).

But what is 1.8-2 billion cubic meters of gas per month? From January to November 2022, Russia exported over 17.8 billion cubic meters of LNG to EU countries, while typical pipeline gas supplies were earlier than 150-170 billion cubic meters per year.

In 2022, pipeline gas supplies to Europe fell by 55% from January 2022 to December 16, 2022, or minus 80 billion cubic meters; by the end of the year, 84-85 billion cubic meters will supply losses.

Accordingly, in order to replace the shortfall in pipeline gas supplies, LNG exports must grow almost 5 times from the current record level, which is impossible due to restrictions on the LNG infrastructure.

LNG is the main channel for gas supplies to Europe. By November 2022, LNG imports amounted to almost 12 billion cubic meters per month, repeating the highs of April 2022 - this is almost twice as high as in 2021. For the first time in the entire time of gas trade with Europe, LNG supplies significantly exceeded pipeline gas supplies from Russia.

At the same time, since June, LNG supplies from the United States have exceeded gas supplies from Gazprom. Gas balances are changing significantly, switching to LNG is taking place, an appropriate infrastructure is being built for this and logistics are being optimized.

Despite the sanctions, Russia's share in LNG is over 15% and remains at a stable level in 2022, while the share of pipeline gas is extremely falling.

Gas sales to Germany for a quarter of market price

In September 2022, Russia sells gas in Germany at a price of 54 euros per MWh (about 550 euros per thousand cubic meters). This is about 3 times cheaper than Norway sells it (through the pipeline), and 4.5 times cheaper than on the spot exchange.

The share of Russian gas in the EU market has decreased since the beginning of the year from 50% to 9%

By the end of August 2022, the share of Russian gas in the EU market has decreased since the beginning of the year from 50% to 9%.

During NATO exercises, US divers install explosives under the Russian Nord Stream gas pipeline, Norway detonates it

Legendary American journalist Seymour Hersh said in February 2023 that US divers, under the guise of NATO exercises in the summer of 2022 (BALTOPS 22), planted explosives under the Northern Streams. The Norwegian authorities were also involved in the explosion, since it was the Norwegians who activated the bomb.

Hersh claims that US President Biden decided to sabotage Nord Stream after more than 9 months of secret discussions with the national security team. For much of that time, the question was not whether to carry out the mission, but how to carry it out without clear clues about who was responsible.

Record decline in exports to Europe during the repair of Nord Stream

Gas exports from Russia to Europe in July 2022 fell to a 40-year low.

The United States for the first time supplied more gas to the EU than Russia

In June 2022, the United States for the first time supplied more gas to the EU than Russia.

Gazprom's high revenues from supplies to the EU, despite a 75% reduction in supplies

Despite a sharp (about 75%) reduction in gas exports to Europe, by the end of May 2022, Gazprom still continues to earn at least 100 million euros per day on the EU.

Germany announced a plan to abandon Russian gas and coal

On February 24, 2022, the German Federal Ministry of Economy and Climate Protection announced the country's refusal to use Russian energy resources (coal and gas). The reason is the beginning of Russia's military operation in Ukraine. Read more here.

2021

Hungary signed a contract with Gazprom for the supply of gas bypassing Ukraine

in Hungary September 2021, she signed a Gazprom new contract with "" for a period of 15 years for the supply of 4.5 billion cubic meters of gas bypassing. Ukraine The agreement comes into force on October 1. It will be possible to change, supplement or extend the contract in ten years.

Kyiv, against the background of the contract between Budapest and Gazprom, allowed a complete stop of gas transit to Hungary through Ukraine.

Gas prices in Europe soared due to Russia's refusal to increase transit through Ukraine

Gas prices in Europe after a month-long respite in July 2021 again rushed into the stratosphere. On Thursday, the cost of gas futures on the London ICE exchange exceeded $500 per thousand cubic meters amid growing demand, a shortage of LNG supplies and Gazprom's refusal to increase pumping through Ukraine.

Contracts for August, tied to the price of gas at the EU's largest hub TTF, reached $501 per thousand cubic meters (40.87 euros per thousand kWh), showing an increase of 3% per day and 10% since the beginning of the week.

Relative to January, gas in the EU has risen in price by 150%, and when compared with the lows of last summer - almost four times. A new round of the gas rally began on Monday, when Gazprom once again ignored the offer of additional transit through Ukraine. Now the company pumps 109 million cubic meters per day through the Ukrainian GTS (under a long-term contract) and another 15 million - on super-planned armor. Since spring, Kyiv has regularly held auctions, offering Gazprom to order more than 60 million cubic meters per day of transit capacity. But over and over again he meets with refusal.

Russia is set to switch flows to Nord Stream 2 as soon as possible and avoids using more expensive routes through Ukraine and Poland. That pushes prices up as demand rises and storage is devastated.

As of June 26, UGS Europe had 50 billion cubic meters of gas, which is 35 billion less than last year and 15 billion lower than the average over the past five years. The situation is aggravated by unplanned supply interruptions from the Norwegian Troll field, a key source of alternative gas for Europe, experts at NatGasIntel point out.

Imports of liquefied gas to Europe remain 20% lower than last year, since all free volume is taken by Asia, where quotes are even higher: on the spot market they reach $539 per thousand cubic meters, while futures for February-2022 are trading at almost $600.

2021

Which countries in Europe depend on Russian gas

Russia overtook the United States for the first time in terms of LNG supplies to Europe - 22 million tons against 20 million tons

At the end of 2020, Russia for the first time overtook the United States in the supply of liquefied natural gas (LNG) to Europe. This was announced by the head of the Shell concern in Russia Sederik Kremers at the presentation of LNG Outlook 2021.

The presentation said that LNG supplies to Europe in 2020 amounted to about 84 million tons, of which 22 million tons fell on Russia and 20 million tons on the United States.

These are LNG supplies to Europe. Usually, half of these supplies are in the United States and Russia, but in 2020 you can see that Russian LNG was supplied in slightly larger volumes than American. This happened for the first time, - said Sederik Kremers (quoted by TASS Information Agency of Russia).

LNG Outlook 2021 reports that LNG demand in Europe will grow until 2040, and the share of pipeline gas will decrease slightly. This will mainly happen due to a drop in supplies from Norway and North Africa.

In addition, a decrease in domestic natural gas production in Europe is predicted, and the volume of Russian pipeline gas supplies will remain at the same level.

According to estimates by the Federal Customs Service (FCS), exports of liquefied natural gas from Russia in 2020 increased by 4.5% in annual terms to 68.3 million cubic meters. Revenues from its sale amounted to $6.75 billion, which is 15% lower than in the same period of 2019.

According to the Refinitiv Eikon system, the largest LNG producer in Russia - Yamal LNG - exported 18.3 million tons (40.8 million cubic meters) in 2020.

Gazprom in 2020, according to the company's own data, exported 7 million tons of liquefied natural gas (LNG), by 2025 plans to more than double this figure.

Deputy Prime Minister Alexander Novak previously reported that Russia plans to increase the production of liquefied natural gas from 29 million tons to 120-140 million tons per year by 2035 and occupy up to 20% of the market.^[2]

Collapse of exports through Ukraine. GTS capacity fully paid by Gazprom

The transit of Russian gas from January to April 2020 through the Ukrainian gas transmission system (GTS) fell to 15.5 billion cubic meters, or 40% compared to the same period last year.

In April, gas transit from the Russian Federation through the territory of Ukraine amounted to 4.4 billion cubic meters. m, which is 1% less than in March 2020 and 46% less than in April 2019.

The company notes that since the beginning of 2020, gas transit capacities from the Russian Federation have been fully paid by the Russian Gazprom in accordance with the new transit contract.

Russia is the largest supplier of gas to the EU with a share of 41%

Gazprom sells gas to Gazprombank in Europe for $1 billion to fulfill export plan

The reduction in demand for Russian gas in Europe, the collapse of spot prices at gas hubs and the cash gap in the budget by tens of billions of rubles led Gazprom to sell the gas to itself.

At the end of 2019, Gazprom sold gas To Gazprombank for 65 billion rubles (1.05 billion dollars at the exchange rate at the end of the year).

The bank, which the company owns 35% directly, and another 47% through the Gazfond pension fund, purchased 7.6 billion cubic meters of export fuel, which was pumped into European storage facilities, but did not find a final consumer.

European subsidiaries of the bank - Gazprombank (Switzerland) Ltd and GPB Financial Services Limited - bought gas under repo agreements. The deals began in August, when Gazprom's export plan was in jeopardy.

At the beginning of the year, the head of the company, Alexei Miller, promised to repeat the 2018 record, selling at least 200 billion cubic meters. But by the end of June, supplies fell 4 billion cubic meters, to 97.7 billion cubic meters, and besides, the company became unprofitable in terms of cash flows: capital construction costs exceeded revenues from operating activities by 55 billion rubles. In the third quarter, the cash gap increased to 166 billion rubles.

Gazprombank's money came to Gazprom's deficit budget and provided the concern with 4% of annual exports (7.6 out of 199.2 billion cubic meters). Excluding it, supplies would have decreased by 10.2 billion cubic meters (5%) compared to 2018 and were below the level of 2017 by 3.1 billion cubic meters (1.5%).

Through REPO operations with Gazprombank, Gazprom attracts liquidity, Deputy Chairman of the Board Famil Sadygov explained in September. "For the company, these transactions are a tool for managing working capital, allowing you to monetize your own gas reserves during periods of low demand," he said.

Selling gas to itself, allowing you to fulfill the export plan, is becoming the norm for Gazprom. In the same way, the company acted at the end of 2019 to report on reaching a record export and breaking the 200 billion cubic meters bar per year.

The head of Gazprom Alexei Miller promised to sell such a volume abroad, but by December 27 only 196.8 billion cubic meters had been sold. A solution was found: Gazprom sold 4.9 billion cubic meters to its own subsidiary Gazprom Marketing & Trading. The company confirmed the transaction and attributed it to "conducting trading operations."

2019: Sharp decline in EU gas prices, Gazprom squeezes competitors out of EU market

The second quarter of 2019 was a failure for Gazprom's revenue from gas exports: revenues fell 38% compared to the first quarter. The loss is really colossal: the former $14.1 billion against the current $8.7 billion. Such negative dynamics is associated with a decrease in gas exports to non-CIS countries by 5.9%. But the biggest damage came from a sharp drop in energy costs. Gas prices in the European Union fell to absolute lows over the past 10 years. It will sound unexpected, but the domestic gas monopoly easily overcomes the gigantic decline in revenue.

The reason lies in the uniquely low cost of Russian gas. In Europe, only Gazprom was able to sell gas at such a low price and "not fly into the pipe." In the hope of maintaining market share and waiting for prices to recover, American LNG suppliers increased the supply of liquefied gas to European countries by 1.5 times. But they do this to their detriment: operating losses on the supply of gas from the United States to Europe are $37-48 for every 1000 cubic meters. m. They will not be able to work endlessly in the negative, there are already rumors that the construction of new LNG facilities in the States may be postponed.

In fact, low prices squeeze Gazprom's competitors out of the European market without any effort from the latter. This does not apply to the three main gas suppliers to Europe: Norway, Algeria and Qatar. They also export their gas through pipelines, and firmly hold their positions.

2018: Russia's share of gas in Europe reaches more than 35%

Deputy Minister of Energy of the Russian Federation Anatoly Yanovsky spoke in May 2019 at the conference "Prospects for Energy Cooperation Russia-EU. Gas aspect. " In his speech, Anatoly Yanovsky dwelled on the main challenges for the gas industry of the countries of the European Union.

"First of all, this is the uncertainty of the development of gas demand in the European Union, a decrease in domestic production, an increase in gas production outside the European Union, including LNG, and, as a result, increased competition in the domestic gas market," Anatoly Yanovsky believes.

In this regard, according to the Deputy Minister, many analysts cannot yet say with accuracy how the demand for gas in key EU countries will form in the future.

'Until 2030, the spread in consumption growth forecasts is about a third of the current gas consumption in the European Union. Nevertheless, many experts believe that there is no need to expect an increase in gas demand in the European Union, and the question is different - at what rate this demand will decline. According to preliminary data, the volume of natural gas consumption in Europe decreased compared to 2017 by 19 billion cubic meters or more, by more than 3%. And this decline occurred for the first time after three years of continuous growth, "he said.

At the same time, this in no way influenced the pace of gas imports from Russia, he stressed.

"Against this background, Gazprom's achievements look very impressive, since in 2018 gas exports amounted to more than 200 billion cubic meters of gas, which is almost 8 billion cubic meters more than in the previous year," the Deputy Minister added. - And this happened contrary to massive unfavorable circumstances, not only climatic, but also political, market, as well as taking into account the supply of additional volumes of LNG to this market. At the same time, the largest European manufacturers - the Netherlands, Norway, Britain - have reduced their supplies. "

He stressed that Russia continues to increase its share in the European gas market.

'At the end of 2018, the share of Russian gas in Europe's gas consumption reached more than 35%, and in imports - 46%, that is, it is almost half. At the same time, the European Union remains the main consumer of gas from Russia - the share of the EU countries in Gazprom's supplies last year reached more than 86%, which indicates our significant interdependence, and that we must act in a fairly coordinated manner, "said the deputy head of the Ministry of Energy of Russia.

According to the deputy minister, the most stable in all scenarios is the forecast of a decrease in domestic production in the European Union - by 2030 it will be almost halved, and in 2050 it may fall by another third to the level of 2030.

Anatoly Yanovsky expressed confidence that European gas imports will continue to be largely covered by Russian pipeline gas, which is guaranteed by huge gas reserves, high production levels and highly developed infrastructure.

2016

Russia's share of EU gas imports - 36%

Forecast for zeroing exports to Europe through Ukraine and Belarus

According to Gazprom, in the first seven months of 2016, Russian gas exports to foreign countries increased by 9.5 billion cubic meters, or 10.7% (compared to January - July 2015).

Basic scenario of gas exports from Russia to Europe (Forbes Russia, December, 2016^[3]

In the maximum scenario of new Russian gas pipelines to Europe, both branches of Nord Stream 2 are being built, as well as both branches of Turkish Stream. In this scenario, the Ukrainian GTS becomes unnecessary. Moreover, the supply of Russian gas to Europe through Belarus and Poland also becomes nominally unnecessary after 2025, which undoubtedly explains such an acute reaction of Poland to the prospects for increasing the use of the capacity of Nord Stream-1 and plans for the construction of Nord Stream-2. The point is not at all the gas security of Europe, but the potential loss of transit volumes and the growth of Poland's dependence on Germany as a new transit of Russian gas for Eastern European countries.

2012: Europe export growth plan to 154 bcm

Gas exports to Europe, according to Gazprom's calculations, were supposed to increase in 2012 to 154 billion cubic meters. m with 150 bcm. m in 2011

Significant volumes of supplies to foreign countries should be achieved in the longer term. In particular, in accordance with the gas industry development scheme until 2030, Russia will increase gas production by 1.5 times - up to 1 trillion cubic meters. m per year, and exports should increase to 455-520 billion cubic meters. m per year.

At this time, Russia is preparing to increase oil and gas production and exports. Companies producing hydrocarbons are actively taking up the development of not yet mastered and poorly studied offshore projects in the Arctic, completing gas pipelines and oil pipelines, and also planning new projects in this area. The plans also include the development of new sales regions, in particular the Asia-Pacific direction.

1991: Russia inherits from the USSR a system of gas contracts with European companies

Russia inherited from the USSR a system of gas contracts between the Soviet Ministry of Oil and Gas with European companies. Gas delivery points in contracts with Europeans roughly corresponded to the former western borders of the countries of Eastern Europe, which were part of the socialist bloc. Gazprom became the successor to these export contracts and supplemented them with new ones.

After the collapse of the Soviet Union to trade Russia , challenges arose in gas with Europe, which the Russian gas export strategy formed over the next 25 years.

Transit risk

The first and most serious was the unprecedented dependence of Russian gas exports on transit through third countries, primarily through Ukraine. In the early 1990s, more than 90% of Russian gas exports to Europe were carried out through export gas pipelines created in Soviet times in Ukraine. By the end of 2016, as a result of the implementation of the program for the construction of new gas pipelines, only 40% of Russian gas exports go to Europe through Ukraine.

Europe's Game Changer

The second challenge was the formation of a single European economic space and the liberalization of the European gas market, which changed the traditional relations between Russia and importing companies of Russian gas and led to the desire of European customers to modify traditional long-term contracts. Against the background of a record increase in gas prices in Europe in 2009-2014 and a decrease in consumption, Europeans managed to agree with Gazprom on price discounts, which shifted the historical balance of interests in favor of consumers.

Competition from alternative suppliers

The third challenge was the activation of alternative competitor suppliers against the background of the declared goal of the European Union to diversify gas supply sources and reduce dependence on Russia. By the end of 2016, LNG (especially from the United States) was being actively discussed as an alternative to Gazprom's pipeline gas supplies to Europe. According to the results of 2016, American LNG turned out to be uncompetitive in price compared to Russian gas and was practically not supplied to Europe.

1973: Exports to Europe 6.8 bcm

By 1973, European sales of Soviet gas reached 6.8 billion cubic meters.

1972: Gas-Pipes agreement signed by Secretary General Brezhnev and German Chancellor Brandt

In 1972, Leonid Brezhnev and German Chancellor Willy Brandt entered into the Gas - Pipes agreement, which allows the export of Soviet gas to Western Europe.

1968: Contract with the Austrian OMV for export to Western Europe

In 1968, under a contract with the Austrian company OMV, exports to Western Europe began.

1940s: First gas export - Poland

The first gas supplies outside the USSR started in Poland in the mid-1940s.

Read also

• Oil and gas production
• Oil production in Russia
• Refining in Russia
• Petroleum products in Russia

• Oil exports from Russia
• Nord Stream AG (Nord Stream)
• South Stream AG
• Turkish Stream (TurkStream)
• Power of Siberia
• Baltic Pipe
• TANAP Trans-Anatolian gas pipeline

• Technologies in the Gas Industry
• Technologies in the Russian oil industry

• US and EU sanctions on Russian oil and gas sector
• Sanctions against Russia

Notes