Russian gas transit through Ukraine fell by another six percent today

Russian gas transit through Ukraine’s transmission system fell by another six percent today to 37.25 million cubic metres. Citing the operator of Ukraine’s transmission system, GTS, the news website of Ukrainska Pravda reported. Gas transit is continuing normally and in line with nominations, however. The news comes a day after the price of gas on the European market reached its highest level this year.

Gas prices are rising amid concerns about the continuity of supplies due to intense fighting between Russian and Ukrainian forces in Russia’s Kursk region, near the last functioning transit point for Russian gas exports to Europe through Ukraine.

According to Ukrainska Pravda, Ukraine’s natural gas transmission system operator reiterated today that Russian natural gas continues to transit normally through Ukraine to Europe, despite reports of clashes near the town of Sudzha, where the only transit point currently in operation is also located.

„Gazprom is supplying Russian gas for transit through Ukrainian territory in the volume confirmed by the Ukrainian side at the Sudzha metering station; for August 8, this is 37.3 million cubic metres,“ Gazprom spokesperson Sergei Kupriyanov told Interfax.

He added that the nomination for Wednesday was 39.4 million cubic metres.

The price of the key September-delivery gas futures contract at the Title Transfer Facility (TTF) virtual trading hub in the Netherlands was up ten euro cents to 38.65 euros per megawatt-hour (MWh) in the morning. The TTF price is the benchmark for the European gas market. At one point on Wednesday, it reached 38.75 euros per MWh, its highest level this year. The higher price may be reducing demand, which is why current supplies are lower.

Russian sources cited by the US Institute for the Study of War (ISW) said that Ukrainian troops had seized a station in Sudzha that is part of the network transporting gas to Europe. According to ISW, geolocated footage shows that Ukrainians captured more than 40 Russians at a checkpoint in Sudzha.

Since May 2022, around a third less Russian gas has flowed through Ukraine to the EU than before. Ukraine had decided to stop allowing Gazprom to transit gas through the Sokhranivka station, one of two transit points on Ukrainian territory. It cited the invasion by Russian forces as the reason. Sudzha is therefore the last transit point still in operation.

Since late February 2022, when Moscow launched its military invasion of Ukraine, Western countries have gradually imposed a series of sanctions on Russia, including measures affecting the energy sector. However, dependence on Russian gas has yet to be resolved.