Russia Can Send Gas to Europe Via Several Routes, Novak Says

(Bloomberg) -- Russia is ready to continue gas exports to Europe through several routes just as a contract to transit the fuel via Ukraine is expected to end this year, Deputy Prime Minister Alexander Novak said.

It is up to authorities in Kyiv and the European Union to agree on the future of gas transportation, Novak said Wednesday in an interview with state-run Rossiya 24 TV channel. “We, in turn, have always stated that we are ready to continue supplying gas not only via the existing link” through Ukraine, he said.

The looming end of supplies through Ukraine comes with significant concerns for nations such as Slovakia which relies heavily on Gazprom PJSC to meet demand, despite much of Europe weaning itself away from Russian piped gas. Ukraine’s President Volodymyr Zelenskiy has indicated his country won’t transit Russian-origin gas unless he has assurances the Kremlin won’t benefit financially while the war continues.

It coincides with forecasts for colder weather across much of Europe, which is likely to increase demand for gas just as stockpiles deplete faster than normal. A tight market makes it challenging for traders to secure enough gas for next year as they vie with Asia for seaborne supplies of liquefied natural gas.

Russia sends gas to Europe through various routes. Besides Ukraine, the fuel is transported via a leg of the TurkStream pipeline that crosses the Black Sea. Each of the two routes currently ships around 15 billion cubic meters per year. Supplies are also sent in tankers as LNG. Novak said Wednesday that total gas exports to Europe exceeded 50 billion cubic meters in the first 11 months of this year.

In September, President Vladimir Putin said Russia is also ready to resume gas supplies to Europe via the last remaining link of the controversial Nord Stream pipeline across the Baltic Sea.

Despite political pressure, “Russian gas is more attractive price-wise and logistically” for regional buyers, Novak said.

©2024 Bloomberg L.P.