Gazprom's business in Ukraine

2023

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

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. Agreement on transit through Ukraine, ends in 2024.

2022

Reduction of Russian gas transit through the Ukrainian gas transportation system to 8-9% of the potential volume

At the end of 2022, 8-9% of the potential volume is supplied through the GTS of Ukraine.

Ukraine stops gas transit to Europe through the station "Saviour"

The operator of the GTS of Ukraine from May 11, 2022, against the background of a special operation of Russia in Ukraine, stopped gas transit to Europe through the Spravovka gas distribution station in the Luhansk region. According to the Operator of the GTS of Ukraine, the gas distribution station "Preservation" is not controlled by the Ukrainian side.

Almost a third of the gas is transited through the system (up to 32.6 million cubic meters. m per day) from Russia to Europe, noted in Kyiv. There is still the possibility of diverting fuel through another key entry point, allowing European contracts to be fulfilled, although it is unclear who is responsible for making that decision.

2021

Complaint against Gazprom to the European Commission demanding gas supplies to the EU through Ukraine

In December 2021, Naftogaz Ukrainy reported that it had appealed to the EC with a complaint about Gazprom's abuse of its dominant position in the European gas market.

The company claims that Gazprom artificially limited supplies to Europe to create a shortage. Asks the EC to oblige Gazprom to put up for sale through an electronic platform significant volumes of gas for supply through Ukraine.

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.

Reducing gas pumping through Ukraine

Since January 2021, Gazprom has cut off gas supplies to Europe through Ukraine.

2020

Losses of Ukraine due to Turkish Stream will amount to 15 billion cubic meters of transit

Main article: Turkish Stream (TurkStream)

Losses due to the Turkish Stream (TurkStream) gas pipeline for Ukraine will amount to 15 billion cubic meters of gas transit. The head of the created operator of the gas transmission system (GTS) of Ukraine Sergey Makogon told about this on his Facebook.

He expressed regret that the construction of the highway could not be stopped. According to Makogon, currently supplies through Ukraine are only for the needs of Romania and Moldova.

Bulgaria, Turkey and other countries receive gas on other routes. Because of this, Ukraine is looking for a way to use the existing infrastructure for other projects. In January, test gas supplies for Ukraine from Bulgaria, Turkey and Greece will begin in the amount of up to 15.8 million cubic meters per day.

Makogon called the Turkish Stream a project "without economic meaning, but with a large political component."

Gazprom reduces gas pumping through Ukraine

Since the beginning of 2020, Gazprom has reduced gas supplies to Europe by about 20 percent. Including on the Ukrainian route, about 100 million cubic meters are pumped per day, although under the terms of the new contract he will have to pay about 180 million cubic meters for pumping.

2014

Winter gas supply package to Ukraine

On October 31, 2014, it became known that Russia and Ukraine, through the mediation of the European Commission (EC), after several months of difficult negotiations, finally found a temporary solution to the gas issue by agreeing on the so-called winter package of gas supplies from the Russian Federation to Ukraine.

On Friday night, an additional agreement was signed to the contract between Gazprom and Naftogaz as part of the winter plan, which provides for conditions for deliveries and payment scheme, and the price will be fixed by the decision of the Russian government to provide a discount.

"Right now (an agreement has been signed - ed.) - At the end of October - at the beginning of the autumn-winter season, at the beginning of the heating season it is no coincidence. Of course, this is dictated by the fact that Ukraine is cold, that it is necessary to heat at home, the gas consumption regime is growing, so without a doubt these objective climatic factors also played a role, "said the head of the company Miller in an interview with Russia 24 TV channel^[1]

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2013: Start of negotiations to renegotiate the 2009 agreement

In February 2013, it became known that the authorities of Russia and Ukraine found the basis for revising the gas agreement of 2009, which does not suit the Ukrainian side. This was stated by Russian Ambassador to Ukraine Mikhail Zurabov. He stressed that the new approach can reduce gas prices for Ukraine even without the country joining the Customs Union.

According to Zurabov, representatives of Naftogaz and the Ministry of Energy of Ukraine will come to Moscow next week. If the negotiations are productive, the next round will be held at the level of the Deputy Prime Minister of the Government of Ukraine and his Russian counterpart^[2].

Zurabov, according to Interfax, stressed that negotiations on energy cooperation will be negatively affected by a bill of seven billion dollars issued by Gazprom to Ukraine on the fact of a gas shortage. The ambassador stressed that he sees in this account a signal to find a compromise and hopes that a decision on the fine will be found without trial. Ukraine has previously stated that it does not recognize a fine of seven billion dollars.

Zurabov did not specify what kind of solution the leaders of Russia and Ukraine found to reduce gas prices.

Ukraine receives gas from Gazprom at a price above $400 per thousand cubic meters, that is, more expensive than many countries located further from Russia. Such a price was formed on the basis of a ten-year agreement of 2009. Ukraine has tried many times to renegotiate this agreement, but they have failed., in Russia turn, offered Kyiv a discount on gas in exchange for joining the Customs Union, but the Ukrainian leadership has so far refused this proposal.

The fine of seven billion dollars was formed as a result of the fact that Ukraine bought less fuel from Russia than prescribed in the contract. It fixes the principle of "take or pay," providing for fines for non-collection of gas. True, Ukraine believes that Gazprom was warned in advance about reducing demand, and therefore does not owe anything to monopolies.

2012

As the Ukrainian Minister of Energy and Coal Industry Yuriy Boyko told reporters on March 13, 2012, gas transit from the Russian Federation through Ukraine in 2012. will remain at 100 billion cubic meters. m. "Over the year there will be about 100 billion, as it was before," he said.

In total, in 2012, Naftogaz should purchase about 33 billion cubic meters of gas from Russia. In accordance with the "take or pay" principle prescribed in the contracts, Kyiv faces significant fines for fuel shortages.

Ukraine has been trying for several years to force Russia to reduce gas prices prescribed in the contracts of Naftogaz and Gazprom of 2009. In Kyiv, they believe that they overpay for fuel. In the third quarter of 2012, Russian gas will cost Kyiv $432 per thousand cubic meters; for comparison, in the first quarter the cost of deliveries was $416, in the second - $425.

Agreement with Ukraine Oil and Gas to ensure gas injection into UGS

In mid-May 2012, the national joint stock company (NAC) Neftegaz of Ukraine refused to ensure the transit of Russian gas to Europe at its own expense, saying that the accumulation of natural gas in Ukrainian underground gas storage facilities (UGS) will occur exclusively in the volumes necessary to meet the country's own needs.

"Neftegaz Ukrainy has offered Gazprom OJSC, if necessary, to use the services of Ukrainian gas storage facilities to fulfill Gazprom's foreign economic contracts and draw up an appropriate additional agreement," the company said in a statement.

In early June 2012 Gazprom announced its readiness to conclude such an agreement.

"We have an understanding that Neftegaz should have financial resources for gas injection into UGS. Such a solution can be found, we could advance to "Oil and Gas of Ukraine" what we must pay for transit - approximately $2 billion so that they use them to inject the proper volumes of gas into UGS. There is an understanding that we will draw up such an agreement in the coming days, "A. Iller said

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On June 7, 2012, the head of Gazprom Corporation Alexei Miller told reporters about the signing of an agreement on the provision of Gazprom an advance in the amount of $2 billion.^[2] for gas transit^[2].

According to A. Miller, this agreement is fundamentally important for ensuring the injection of gas into the underground storage facilities of Ukraine in the required volume for the passage of the autumn-winter maximum of 2012-2013.

"This is very good news for our European partners, for our consumers, since full Ukrainian underground storage facilities are a reliable guarantee of Russian gas transit in the coming winter. Ukraine received all the necessary financial and working capital for a successful injection, "said the head of Gazprom

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Statements on the reduction of gas purchases in Russia in 2013

In November 2012, it became known that Naftogaz Ukrainy plans to purchase only 20 billion cubic meters of gas from Russia in 2013. This was stated by the deputy chairman of the board of the Ukrainian state-owned company Vadim Chuprun. For comparison, in 2011, supplies to Ukraine from Russia amounted to about 40-45 billion cubic meters. Gazprom has not yet reacted to a possible reduction in exports.

In Ukraine, throughout 2012, they stated that they hoped to reduce purchases in Russia. Initially, the Minister of Energy and Coal Industry of the country Yuriy Boyko called the figure of 27 billion cubic meters, but in September the official revised his own forecast and announced 24.5 billion cubic meters. Number of 20 billion was not previously called.

In Gazprom's contract with Naftogaz, the take-or-pay principle applies, according to which the importer cannot buy less gas than stipulated in the contract. Gazprom has repeatedly stated that it has not yet negotiated with Ukraine on a possible reduction in purchases. So, in June 2012, the head of Gazprom, Alexei Miller, noted that Kyiv should purchase 52 billion cubic meters. At the same time, the gas monopoly added that the contract provides for a possible reduction in supplies, in which a fine is not imposed on Naftogaz, but imports should still amount to about 41 billion cubic meters.

The data on exactly how much gas Gazprom supplied to Ukraine in 2011 vary: they depend on whether the gas of Gazprom is considered five billion cubic meters of fuel supplied to Naftogaz by Ostchem Holding businessman Dmitry Firtash. According to Kommersant's sources, it was also supplied by Gazprom's structures, and the state monopoly itself takes them into account in the balance of supplies to Ukraine.

In 2012, Kyiv would like to receive only 27 billion cubic meters from Gazprom, but the Russian state monopoly insists on the same 52 billion cubic meters.

Ukraine hopes to buy less gas from Russia due to the economic crisis, which has led to a reduction in fuel demand growth, savings measures, the conversion of some power plants to coal, as well as fuel purchases in. The desire To Europe to diversify supplies in Ukraine is explained by the fact that gas from Gazprom is too expensive - more expensive than for most countries. Russia does Europe not yet see any reason to reduce prices.

Ukraine is the largest market for Russian gas. If the volume of supplies to Naftogaz falls below 25 billion cubic meters per year, then Ukraine will occupy only third place in the list of the largest importers, passing Turkey forward Germany.

2011: Ukraine is the largest market for Russian gas

According to the results of 2011, Ukraine is the largest market for Russian gas.

According to Ukrtransgaz, in 2011 gas transit from the Russian Federation through the Ukrainian gas transmission system increased compared to 2010. by 5.7% - up to 104.2 billion cubic meters. m. Including transit to the European Union increased by 5.9% - to 101.1 billion cubic meters. m.

Notes