In the days and weeks leading up to February 25, Russia had only partially used the booked transit capacity.
(Photo: AP)
Berlin Since the beginning of the Russian attack on Ukraine, the Ukrainian gas transmission system operator GTSOU has recorded record values for the transported volumes of Russian natural gas. On the days from February 25 to March 1 inclusive, the Russians used between 97 and 100 percent of the capacities booked with GTSOU. The value is significantly higher than the average values of the days before.
GTSOU boss Sergiy Makogon told Handelsblatt: “We continue to fulfill our pre-booked gas transport commitments. The current transit volume is 109.2 million cubic meters.”
In the days and weeks leading up to February 25, the Russians had only partially used the transit capacity they had booked. Utilization was well below 50 percent on many days. Russia had been heavily criticized for this.
The Europeans accused the Russians of fulfilling their contractual delivery obligations but not offering any more gas in order to keep prices high and the supply situation tight.
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It is surprising that the Russians made full use of the transit capacities to which they were contractually entitled just at the start of their attack on Ukraine. However, there are various explanations for this.
Interested in Russian gas
Western sanctions against Russia do not extend to energy supplies. Since almost all other channels are closed due to the sanctions, the sale of gas and oil is all the more important for Russia. The Russians’ lack of money is met with brisk demand for gas from the Europeans.
There is a reason for the interest in Russian gas: Large suppliers like Uniper have framework agreements with Gazprom, the Russian gas exporter. These contracts give companies the right to purchase certain quantities at a fixed price mechanism over a certain period of time.
The second pillar is the spot market, where gas is traded at current prices. The outbreak of war led to a significant price increase on the spot market. This means that the gas that European companies can obtain from the framework agreements with Gazprom is currently cheaper than gas on the spot market and is bought in larger quantities.
Gas transit through Ukraine is a political issue of the first order. For years, Russia has been trying to build an infrastructure that would make transit through Ukraine superfluous. The construction of the first Nord Stream pipeline, which has been in operation since 2011, initially served this purpose.
The construction of the second Nord Stream pipeline should further increase independence from gas transit through Ukraine. However, the commissioning of the completed pipeline is on hold.
According to Ukrainian information, the gas supply infrastructure is largely undamaged despite the ongoing Russian attacks. Although three gas distribution stations had to be shut down, these are important for the domestic supply. The long-distance gas pipelines, on the other hand, functioned largely without any problems.
More: Where does the replacement come from? The consequences of the sanctions for the energy supply