Topline
Ukraine’s gas pipeline operator on Wednesday shut down the flow of Russian gas through a key transit point in the east of the country which is currently occupied by Russian troops, in a move that could partially disrupt supplies to Western Europe.
(Representative Image) Ukraine’s decision could lead to a disruption in gas supply to Western … [+] Europe.
AFP via Getty Images
Key Facts
The Gas Transmission System Operator of Ukraine stopped accepting incoming Russian gas through a border entry point called Sokhranivka, accusing Russian forces of interfering with the operation of gas facilities in the area and siphoning off supplies.
The company said that the move will cut off about one-third of Russian gas transiting through to the rest of Europe, although Russian state-owned oil and gas giant Gazprom pegged the figure at a quarter.
The Ukrainian operator said that Russia should redirect supplies through the Sudzha transit point in northern Ukraine, which is in an area under Kyiv’s control, but Gazprom dismissed this as “technologically impossible.”
According to the Associated Press, flow data from Wednesday suggested that a higher volume of gas was moving through the Ukrainian-controlled transit station.
The gas supply comes at a time when Ukrainian forces have begun to enjoy some success in the battle around the eastern Donbas region where they have managed to push Russian forces out of four villages.
Key Background
As part of a broader effort to reduce its dependency on Russian energy sources, the European Union last week, announced a proposal to phase out Russian oil imports over a period of six months as part of a new wave of sanctions against Moscow. However, the bloc has not been able to move forward with the plan in the face of stiff opposition from member state Hungary. Hungarian President and long-time Putin-ally Viktor Orban said such a ban would be too costly and would amount to an “atomic bomb” being dropped on the Hungarian economy. The proposed ban only targeted crude oil imports from Russia and not natural gas supplies as several major EU countries like Germany still remain heavily reliant on Russian gas for their energy needs.
Tangent
According to Reuters, Germany is preparing a contingency plan to help deal with any sudden halt in supplies of Russian gas ordered by Moscow. This plan will reportedly include the government taking control of critical firms like refineries while granting additional loans and guarantees to prop up local energy firms. Last month, Gazprom halted gas supplies to Poland and Bulgaria over their failure to pay for gas in rubles, as per the Kremlin’s demands.
Further Reading
Ukraine halts some Russian gas flows, claims battlefield gains (Reuters)
Ukrainians make gains in east, stop Russian gas at one hub (Associated Press)
