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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
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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.

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COP29: What Is the Latest Science on Climate Change?

A flare burns off excess gas from a gas plant in the Permian Basin in Loving County, Texas, US, November 21, 2019. (Reuters)
A flare burns off excess gas from a gas plant in the Permian Basin in Loving County, Texas, US, November 21, 2019. (Reuters)
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COP29: What Is the Latest Science on Climate Change?

A flare burns off excess gas from a gas plant in the Permian Basin in Loving County, Texas, US, November 21, 2019. (Reuters)
A flare burns off excess gas from a gas plant in the Permian Basin in Loving County, Texas, US, November 21, 2019. (Reuters)

This year's UN climate summit - COP29 - is being held during yet another record-breaking year of higher global temperatures, adding pressure to negotiations aimed at curbing climate change.

The last global scientific consensus on climate change was released in 2021 through the Intergovernmental Panel on Climate Change, however scientists say that evidence shows global warming and its impacts are unfolding faster than expected.

Here is some of the latest climate research:

1.5C BREACHED?

The world may already have hit 1.5 degree Celsius (2.7 F) of warming above the average pre-industrial temperature - a critical threshold beyond which it is at risk of irreversible and extreme climate change, scientists say.

A group of researchers made the suggestion in a study released on Monday based on an analysis of 2,000 years of atmospheric gases trapped in Antarctic ice cores that extends the understanding of pre-industrial temperature trends.

Scientists have typically measured today's temperatures against a baseline temperature average for 1850-1900. By that measure, the world is now at nearly 1.3 C (2.4 F) of warming.

But the new data suggests a longer pre-industrial baseline, based on temperature data spanning the year 13 to 1700, the study published in the journal Nature Geoscience said.

Either way, 2024 is certain to be the warmest year on record.

SUPERCHARGED HURRICANES

Not only is ocean warming fueling stronger Atlantic storms, it is also causing them to intensify more rapidly, for example, jumping from a Category 1 to a Category 3 storm in just hours.

Growing evidence shows this is true of other ocean basins.

Hurricane Milton needed only one day in the Gulf of Mexico in October to go from tropical storm to the Gulf's second-most powerful hurricane on record, slamming Florida's west coast.

Warmer air can also hold more moisture, helping storms carry and eventually release more rain. As a result, hurricanes are delivering flooding even in mountain towns like Asheville, North Carolina, inundated in September by Hurricane Helene.

WILDFIRE DEATHS

Global warming is drying waterways and sapping moisture from forests, creating conditions for bigger and hotter wildfires from the US West and Canada to southern Europe and Russia's Far East creating more damaging smoke.

Research published last month in Nature Climate Change calculated that about 13% of deaths associated with toxic wildfire smoke, roughly 12,000 deaths, during the 2010s could be attributed to the climate effect on wildfires.

CORAL BLEACHING

With the world in the throes of a fourth mass coral bleaching event — the largest on record — scientists fear the world's reefs have passed a point of no return.

Scientists will be studying bleached reefs from Australia to Brazil for signs of recovery over the next few years if temperatures fall.

AMAZON ALARM

Brazil's Amazon is in the grips of its worst and most widespread drought since records began in 1950. River levels sank to all-time lows this year, while fires ravaged the rainforest.

This adds concern to scientific findings earlier this year that between 10% and 47% of the Amazon will face combined stresses of heat and drought from climate change, as well as other threats, by 2050.

This could push the Amazon past a tipping point, with the jungle no longer able to produce enough moisture to quench its own trees, at which point the ecosystem could transition to degraded forests or sandy savannas.

Globally, forests appear to be struggling.

A July study found that forests overall last year failed to absorb as much carbon dioxide from the atmosphere as in the past, due largely to the Amazon drought and wildfires in Canada.

That means a record amount of CO2 entered the atmosphere.

VOLCANIC SURGE

Scientists fear climate change could even boost volcanic eruptions.

In Iceland, volcanoes appear to be responding to rapid glacier retreat. As ice melts, less pressure is exerted on the Earth's crust and mantle.

Volcanologists worry this could destabilize magma reservoirs and appears to be leading to more magma being created, building up pressure underground.

Some 245 volcanoes across the world lie under or near ice and could be at risk.

OCEAN SLOWDOWN

The warming of the Atlantic could hasten the collapse of a key current system, which scientists warn could already be sputtering.

The Atlantic Meridional Overturning Circulation (AMOC), which transports warm water from the tropics to the North Atlantic, has helped to keep European winters milder for centuries.

Research in 2018 showed that AMOC has weakened by about 15% since 1950, while research published in February in the journal Science Advances, suggested that it could be closer to a critical slowdown than previously thought.