Russia still delivers natural gas to Europe through the war zone in Ukraine. Why?
Where does the pipeline run?
Urengoy–Pomary–Uzhhorod pipeline, built during the Soviet era, transports gas from Western Siberia through Sudzha in the Kursk region of Russia. It then flows through Ukraine towards Slovakia.
In Slovakia, the pipeline splits into two branches: one leading towards the Czech Republic and the other towards Austria. The main buyers of this gas are Hungary, Slovakia, and Austria.
Approximately 14.65 billion cubic meters of gas were delivered through Sudzha in 2023, accounting for about half of Russia’s natural gas exports to Europe. The European Union’s (EU) gas consumption fell to 295 billion cubic meters in 2023.
How much gas does Russia supply to Europe?
Before the war in Ukraine in 2022, Russia supplied just under half of the EU’s gas. However, Europe has moved away from Russian gas, and the sabotage of the Nord Stream pipeline further reduced Russian deliveries.
Russian gas has been replaced by imports of liquefied natural gas (LNG). The United States (U.S.) increased its share in the EU gas market to 56.2 billion cubic meters in 2023 from 18.9 billion cubic meters in 2021, while Norway increased its share to 87.7 billion cubic meters in 2023 from 79.5 billion cubic meters in 2021. Other suppliers include North African countries, the United Kingdom (UK), and Qatar.
No one has taken responsibility for the Nord Stream explosions in September 2022, which occurred near the Danish island of Bornholm and ruptured three of the four lines of the system supplying Russian natural gas to Europe.
Why does Russia still send gas through Ukraine?
About half of Russia’s natural gas exports to Europe pass through Ukraine.
The main reasons are money and history.
Gazprom, which holds about 16 percent of the world’s gas reserves and employs nearly half a million people, was once one of Russia’s most powerful corporate empires, so powerful that it was known as a “state within a state.”
However, it has faced difficulties due to the loss of the European gas market.
The company reported a net loss of 629 billion rubles in 2023, its first annual loss in more than 20 years, amid dwindling gas trade with Europe, once its main importer.
Ukraine, once an integral part of the Soviet Union, also earns revenue from the transit of gas, RSE writes.
E.Dz.
