Kremlin claims that gas transit through Ukraine is unprofitable

The Minister of Energy Alexander Novak, in an interview with Gazeta.ru, stated that gas transit through Ukraine to Europe costs Russia 2-2.5 times more than other routes, including Yamal-Europe and Nord Stream-1. 

“This is primarily since the Ukrainian gas transport system was created about 50 years ago, the minister explained. Back then the technology was still old, with high depreciation of fixed assets, and large losses during gas transport.” 

According to him, the implementation of new gas transport systems (Turkish Stream, Nord Stream-2) is based on the latest technologies, used in this area, stressed the Minister of Energy. “These are large-diameter pipes, high pressure, high gas transfer rate, low losses,” said Novak. 

The agreements on gas transport between Moscow and Kyiv end at the end of 2019. 

On February 9th, the Deputy Minister of Foreign Affairs Alexander Pankin stated that Russia is ready to continue transport only on Moscow’s terms. “One of the possible options is the current contract if necessary changes are introduced,” he said. 

In response, the executive director of Naftogaz, Yuriy Vitrenko, stated that the current transit contract between the Ukrainian company and Gazprom does not meet the requirements of Ukrainian legislation and the European Union and for this reason, the agreement cannot be extended. He stressed that gas transport through Ukraine could only continue “following standard European requirements.”

  Russia, Ukraine, Vitrenko, Nord Stream - 2, Naftogaz

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