Russian gas exports to Europe via Ukraine continue steadily, Gazprom says

Russian gas exports to Europe via Ukraine are continuing steadily today, state-owned energy company Gazprom said, according to Reuters. Gazprom will send 42.4 million cubic meters of gas to Europe via Ukraine, the same volume as on Sunday. On Saturday, the Russian company halted gas supplies to Austrian company OMV after OMV suspended some payments in connection with an arbitration ruling in its favor.

Orders, known as nominations, for gas from Ukraine to Slovakia changed little on Monday compared with previous days. Nominations for gas leaving Slovakia were also stable, according to data from transmission system operator Eustream. Nominations for gas flows from Slovakia to Czechia likewise remained at around the levels seen in previous days.

On Friday, Gazprom announced that it would halt supplies to Austrian energy company OMV starting Saturday. The Austrian company suspended payments to Gazprom to recover the amount awarded to it in arbitration. The court awarded OMV 230 million euros (5.8 billion Kč) in compensation.

The Austrian company sought compensation for irregular gas supplies and for the complete halt to supplies to Germany in August 2022. OMV is also involved in several other disputes with the Russian state-owned company.

By contrast, imports of Russian gas into Czechia have risen over the past year. While no gas from the eastern European country flowed into the Czech Republic for most of last year, its share has gradually increased since last autumn. Russian gas accounted for a total of seven percent for all of 2023. Most of the remaining supplies came from Norway and liquefied natural gas (LNG) from the terminal in the Netherlands.

However, Trinity Bank economist Lukáš Kovanda noted that the increase in Russian gas has accelerated further in recent weeks. In November, he said, Russian gas accounted for around 94 percent of the gas entering the country from Slovakia. Russian gas is the main source flowing in that direction. Authorities have previously pointed out in this context that the choice of gas imports depends on traders’ decisions and is not within the state’s control.

Russia, which was Europe’s largest gas supplier before launching its invasion of Ukraine, has lost most of its European customers amid sanctions and the EU’s efforts to reduce its dependence on Russian energy. Since late February 2022, when Moscow launched its military invasion of Ukraine, Western countries have gradually imposed a range of sanctions on Russia, including measures affecting the energy sector. Landlocked countries in Central Europe were granted an exemption for gas supplies to give them more time to find alternative suppliers. However, the contract for the transit of Russian gas to the EU via Ukraine expires at the end of this year, and is not expected to be extended.