عربي English Türkçe اردو فارسى
Logo
Latest News
Features

What Happens When Russian Gas to Europe Via Ukraine Stops?

A view shows a board with the logo of Russian gas producer Gazprom at the St. Petersburg International Economic Forum (SPIEF) in Saint Petersburg, Russia June 5, 2024. REUTERS/Anton Vaganov/File Photo
A view shows a board with the logo of Russian gas producer Gazprom at the St. Petersburg International Economic Forum (SPIEF) in Saint Petersburg, Russia June 5, 2024. REUTERS/Anton Vaganov/File Photo
TT
TT

What Happens When Russian Gas to Europe Via Ukraine Stops?

A view shows a board with the logo of Russian gas producer Gazprom at the St. Petersburg International Economic Forum (SPIEF) in Saint Petersburg, Russia June 5, 2024. REUTERS/Anton Vaganov/File Photo
A view shows a board with the logo of Russian gas producer Gazprom at the St. Petersburg International Economic Forum (SPIEF) in Saint Petersburg, Russia June 5, 2024. REUTERS/Anton Vaganov/File Photo

Austria's energy company OMV was informed by Gazprom that the Russian gas producer would halt deliveries of natural gas via Ukraine to OMV from 0500 GMT on Nov. 16 following OMV winning an arbitration case. Supplies of Russian gas to Europe via Ukraine may completely stop from Jan. 1 2025 after the current five-year deal expires as Kyiv has refused to negotiate the new terms of the transit with Moscow during the war.
Here is what happens if Russian gas transit via Ukraine is completely turned off and who will be affected most, according to Reuters.
HOW BIG ARE THE VOLUMES?
Russian gas supplies to Europe via Ukraine are relatively small. Russia shipped about 15 billion cubic meters (bcm) of gas via Ukraine in 2023 - only 8% of peak Russian gas flows to Europe via various routes in 2018-2019.
Russia spent half a century building its European gas market share, which at its peak stood at 35%.
Moscow lost its share to rivals such as Norway, the United States and Qatar since the invasion of Ukraine in 2022, prompting the EU to cut its dependence on Russian gas.
EU gas prices rallied in 2022 to record highs after the loss of Russian supplies. The rally won't be repeated given modest volumes and a small number of customers for the remaining volumes, according to EU officials and traders.
UKRAINIAN ROUTE
The Soviet-era Urengoy-Pomary-Uzhgorod pipeline brings gas from Siberia via the town of Sudzha - now under control of Ukrainian military forces - in Russia's Kursk region. It then flows through Ukraine to Slovakia.
In Slovakia, the gas pipeline splits into branches going to the Czech Republic and Austria.
Austria still receives most of its gas via Ukraine, while Russia accounts for around two-thirds of Hungary's gas imports.
Slovakia takes around 3 bcm from energy giant Gazprom per year, also about two-thirds of its needs.
Czech Republic almost completely cut gas imports from the east last year, but has started taking gas from Russia in 2024.
Most other Russian gas routes to Europe are shut including Yamal-Europe via Belarus and Nord Stream under the Baltic.
The only other operational Russian gas pipeline route to Europe is the Blue Stream and TurkStream to Türkiye under the Black Sea. Türkiye sends some Russian gas volumes onward to Europe including to Hungary.
WHY DOES THE UKRAINIAN ROUTE STILL WORK?
While remaining Russian gas transit volumes are small, the issue remains a dilemma for the EU. Many EU members such as France and Germany have said they would not buy Russian gas anymore but the stance of Slovakia, Hungary and Austria, which have closer ties to Moscow, challenges the EU common approach.
The countries, who still receive Russian gas, argue it is the most economic fuel and also blame neighboring EU countries for imposing high transit fees for alternative supplies.
Ukraine still earns $0.8-$1 billion in transit fees from Russian gas transit. Russia earns over $3 billion on sales via Ukraine based on an average gas price of $200 per 1,000 cubic meters, according to Reuters calculations.
Russia's gas pipeline export monopoly Gazprom plunged to a net loss of $7 billion in 2023, its first annual loss since 1999, because of the loss EU's gas markets.
Russia has said it would be ready to extend the transit deal but Kyiv has repeatedly said it won't do it.
Another option is for Gazprom to supply some of the gas via another route, for example via TurkStream, Bulgaria, Serbia or Hungary. However, capacity via these routes is limited.
The EU and Ukraine have also asked Azerbaijan to facilitate discussions with Russia regarding the gas transit deal, an Azeri presidential advisor told Reuters, who declined to give further details.

Most Viewed

 
 
Features

'We Will Die from Hunger': Gazans Decry Israel's UNRWA Ban

Itimad Al-Qanou, a displaced Palestinian mother from Jabalia, eats with her children inside a tent, amid Israel-Gaza conflict, in Deir Al-Balah, central Gaza Strip, November 9, 2024. REUTERS/Ramadan Abed
Itimad Al-Qanou, a displaced Palestinian mother from Jabalia, eats with her children inside a tent, amid Israel-Gaza conflict, in Deir Al-Balah, central Gaza Strip, November 9, 2024. REUTERS/Ramadan Abed
TT
TT

'We Will Die from Hunger': Gazans Decry Israel's UNRWA Ban

Itimad Al-Qanou, a displaced Palestinian mother from Jabalia, eats with her children inside a tent, amid Israel-Gaza conflict, in Deir Al-Balah, central Gaza Strip, November 9, 2024. REUTERS/Ramadan Abed
Itimad Al-Qanou, a displaced Palestinian mother from Jabalia, eats with her children inside a tent, amid Israel-Gaza conflict, in Deir Al-Balah, central Gaza Strip, November 9, 2024. REUTERS/Ramadan Abed

After surviving more than a year of war in Gaza, Aisha Khaled is now afraid of dying of hunger if vital aid is cut off next year by a new Israeli law banning the UN Palestinian relief agency from operating in its territory.

The law, which has been widely criticised internationally, is due to come into effect in late January and could deny Khaled and thousands of others their main source of aid at a time when everything around them is being destroyed.

"For me and for a million refugees, if the aid stops, we will end. We will die from hunger not from war," the 31-year-old volunteer teacher told the Thomson Reuters Foundation by phone.

"If the school closes, where do we go? All the aspects of our lives are dependent on the agency: flour, food, water ...(medical) treatment, hospitals," Khaled said from an UNRWA school in Nuseirat in central Gaza.

"We depend on them after God," she said.

UNRWA employs 13,000 people in Gaza, running the enclave's schools, healthcare clinics and other social services, as well as distributing aid.

Now, UNRWA-run buildings, including schools, are home to thousands forced to flee their homes after Israeli airstrikes reduced towns across the strip to wastelands of rubble.

UNRWA shelters have been frequently bombed during the year-long war, and at least 220 UNRWA staff have been killed, Reuters reported.

If the Israeli law as passed last month does come into effect, the consequences would be "catastrophic," said Inas Hamdan, UNRWA's Gaza communications officer.

"There are two million people in Gaza who rely on UNRWA for survival, including food assistance and primary healthcare," she said.

The law banning UNRWA applies to the Israeli-occupied West Bank, Gaza and Arab East Jerusalem, areas Israel captured in 1967 during the Six-Day War.

Israeli lawmakers who drafted the ban cited what they described as the involvement of a handful of UNRWA's thousands of staffers in the attack on southern Israel last year that triggered the war and said some staff were members of Hamas and other armed groups.

FRAGILE LIFELINE

The war in Gaza erupted on Oct. 7, 2023, after Hamas attack. Israel's military campaign has levelled much of Gaza and killed around 43,500 Palestinians, Gaza health officials say. Up to 10,000 people are believed to be dead and uncounted under the rubble, according to Gaza's Civil Emergency Service.

Most of the strip's 2.3 million people have been forced to leave their homes because of the fighting and destruction.

The ban ends Israel's decades-long agreement with UNRWA that covered the protection, movement and diplomatic immunity of the agency in Israel, the West Bank and the Gaza Strip.

For many Palestinians, UNRWA aid is their only lifeline, and it is a fragile one.

Last week, a committee of global food security experts warned there was a strong likelihood of imminent famine in northern Gaza, where Israel renewed an offensive last month.

Israel rejected the famine warning, saying it was based on "partial, biased data".

COGAT, the Israeli military agency that deals with Palestinian civilian affairs, said last week that it was continuing to "facilitate the implementation of humanitarian efforts" in Gaza.

But UN data shows the amount of aid entering Gaza has plummeted to its lowest level in a year and the United Nations has accused Israel of hindering and blocking attempts to deliver aid, particularly to the north.

"The daily average of humanitarian trucks the Israeli authorities allowed into Gaza last month is 30 trucks a day," Hamdan said, adding that the figure represents 6% of the supplies that were allowed into Gaza before this war began.

"More aid must be sent to Gaza, and UNRWA work should be facilitated to manage this aid entering Gaza," she said.

'BACKBONE' OF AID SYSTEM

Many other aid organizations rely on UNRWA to help them deliver aid and UN officials say the agency is the backbone of the humanitarian response in Gaza.

"From our perspective, and I am sure from many of the other humanitarian actors, it's an impossible task (to replace UNRWA)," said Oxfam GB's humanitarian lead Magnus Corfixen in a phone interview with the Thomson Reuters Foundation.

"The priority is to ensure that they will remain ... because they are essential for us," he said.

UNRWA supports other agencies with logistics, helping them source the fuel they need to move staff and power desalination plants, he said.

"Without them, we will struggle with access to warehouses, having access to fuel, having access to trucks, being able to move around, being able to coordinate," Corfixen said, describing UNRWA as "essential".

UNRWA schools also offer rare respite for traumatised children who have lost everything.

Twelve-year-old Lamar Younis Abu Zraid fled her home in Maghazi in central Gaza at the beginning of the war last year.

The UNRWA school she used to attend as a student has become a shelter, and she herself has been living in another school-turned-shelter in Nuseirat for a year.

Despite the upheaval, in the UNRWA shelter she can enjoy some of the things she liked doing before war broke out.

She can see friends, attend classes, do arts and crafts and join singing sessions. Other activities are painfully new but necessary, like mental health support sessions to cope with what is happening.

She too is aware of the fragility of the lifeline she has been given. Now she has to share one copybook with a friend because supplies have run out.

"Before they used to give us books and pens, now they are not available," she said.