Ukraine and Russia benefit from preserving gas supplies through Sudzha — Bloomberg

Russia and Ukraine intend to continue supplying gas to Europe. The supply will continue despite the ongoing hostilities near a key cross-border fuel transit point.

This was reported by Bloomberg.

«Both sides have no intention of stopping gas supplies through the Sudzha gas intake station in Russia’s Kursk region,» the media outlet added, citing sources.

Bloomberg noted that both sides have a financial incentive to keep the fuel flowing. For Kyiv, gas transit provides crucial funds for its war-torn economy. The profits from transit were about a billion dollars in 2021. At the same time, Europe remains one of the largest consumers of Russian pipeline gas.

«Ukraine wants to be seen as a reliable partner of Europe, hoping that traders in the region will make more use of its vast gas storage facilities. And it has good reason to protect its infrastructure, as unused pipelines could become targets of military attacks or could break down, which would be expensive to repair,» the journalists noted.

However, any accidental damage to key infrastructure at the gas intake station could lead to a supply cut-off. This was stated by one of the Bloomberg’s sources. Since the invasion, the border crossing has been under the control of Ukrainian troops, according to two people familiar with the situation.

Russian supplier Gazprom did not respond to requests for comment on future supply plans. Ukraine’s Energy Ministry also declined to comment.

While most European countries are looking for alternatives to Russian pipeline gas following the invasion of Ukraine, countries such as Austria, Slovakia, and Moldova continue to import gas from Gazprom via Ukraine.

«Gazprom continues to supply gas to the Sudzha point. The daily flows are stable, ranging from 37 million cubic meters to around 42 million cubic meters.»

The gas metering station in Sudzha is located near the border with Ukraine. On August 7, it was reported that the Ukrainian Armed Forces entered the town and took control of the Gazprom facility. Ukraine’s offensive in the Kursk region began on August 6, but for almost a week, Ukraine did not officially comment on these events. Only on August 12 did Ukrainian Armed Forces Commander-in-Chief Oleksandr Syrsky confirm that Ukraine controlled a thousand square kilometers of the Kursk region.