Deputy Foreign Minister Mikhail Galuzin’s reply to a TASS question on reports of Ukraine’s intention not to extend the gas transit agreement with Russia beyond 2024

Question: We would like to ask you to comment on a statement by former head of the OMV Austrian oil-and-gas company Gerhard Reuss on Ukraine’s intention not to extend the agreement on the transit of Russian gas beyond 2024. Do Russian officials know about this? What actions will Moscow take in this case?

Mikhail Galuzin: We have not received any notification from Ukraine about this through official channels.

However, if this happens, it will be no surprise. As we know, the Kiev regime looks at absolutely all aspects of its foreign, domestic and economic policy through an anti-Russia prism. It is ready to take any step to harm Russia even at the expense of its own interests or those of other countries. 

Today, Gazprom supplies Europe with natural gas via Ukrainian territory under the December 30, 2019 agreement with Naftogaz. This agreement provides for the use of Ukraine’s gas transport system for gas transit until 2024 inclusive. The document was signed in accordance with EU legal regulations and provides for guaranteed pumping volumes with the possibility of increases.

Gazprom is paying handsome sums to Naftogaz for gas transit. According to open sources, the tariff is $32 for 1,000 cubic metres. Under the agreement, 65 billion cubic metres were pumped during the first year, and 40 billion cubic metres per year (or 109.6 million per day) were supposed to be transported in the following four years. In other words, Russia pays Ukraine about $1.3 billion per year for gas transit. Russia fully abides by these transit terms.

Meanwhile, in May 2022, when the Lugansk People’s Republic was liberated in the course of the special military operation, Kiev suspended the use of a gas measuring station located on LPR territory. Thus, Kiev stopped transporting gas via one of the two transit pipelines passing through Ukraine’s territory. Due to this, pumping volumes dropped and are now about 46 million cubic metres per day instead of 109.6 million.

Let me recall that formally Ukraine does not buy Russian gas. It unilaterally stopped direct purchases from Russia in November 2015. Today, it is buying reverse-flow gas in EU countries, primarily, Slovakia, Hungary and Poland. However, in fact, gas is pumped into depots from the gas transport system on Ukraine’s territory.

If Ukraine does not extend the gas transit agreement after 2024, it will deal a blow at the EU countries that are buying Russian gas and at the same time will shoot itself in the foot by losing the dividends from transit. This will adversely affect Europe’s energy sufficiency but is bound to make Washington happy given that it wants Europe to depend on it economically and politically and is doing all it can to derive maximum profit from the crisis in Ukraine.