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Friday, 22 November
economy

Europe's gas market will continue to fever: Russia does not want to pump gas through Ukraine

The Russian Federation, represented by the energy giant Gazprom, did not book any volumes via gas transport system of Ukraine for the additional gas supply to Europe. Instead of the previously announced volumes, Gazprom has booked about a third of offered gas transit capacity via the Yamal-Europe pipeline via Poland. This was demonstrated by the results of the booking auctions for November.

Gazprom's data also showed its gas exports declined in the first half of October from the same period in September.

The auction results are closely watched as Europe has been eagerly awaiting more gas supplies, especially from Russia, as it tackles skyrocketing natural gas prices, boosted by tight supplies and economic recovery.

According to the auction platform, Gazprom has booked some 32 million cubic metres per day, or 35% of total additional capacity, offered by the Polish operator Gas System for transit via the Kondratki transit point for the Yamal-Europe pipeline for November.

At the end of 2019, Gazprom and Ukraine agreed a five-year deal on Russian gas transit to Europe. However, Ukraine's pipeline operator said on Friday that Russia is sending less gas to Europe via Ukraine than specified in the current transit contract.

The Russian company has the right to book extra transit capacity in addition to already agreed volumes. Earlier, Gazprom regularly booked additional solid transit capacity via Ukraine (up to 15 million cubic meters per day). But this year, Russia has mostly refused to buy significant spare capacity via Ukraine. Analysts have said that Gazprom has not booked larger volumes in a move to push for the Nord Stream 2 gas pipeline, which is awaiting regulatory clearance from Germany to start gas exports.

The head of Ukraine's gas pipeline operator confirmed Gazprom has refused to book any additional transit.

"Gazprom's statements about the first line of Nord Stream 2 being filled with gas is a direct hint that Europe may get additional volumes only via NS2. The blackmail goes on," Sergiy Makogon said.

Yuriy Vitrenko, head of Ukraine's state energy company Naftogaz, also accused Gazprom of deliberately not supplying additional volumes of gas to Europe.

Noteworthy, both the Kremlin and Gazprom have repeatedly said Russia meets all requests for gas supplies from European customers.