Ukraine quietly buys Russian gas via roundabout at expensive prices

Ngọc Vân |

Ukraine is buying Russian gas through EU countries, after Kiev refused to extend the gas transit agreement with Gazprom in early 2025.

According to information from Mr. Aleksey Kucherenko, Deputy Chairman of the National Assembly's Energy Committee of Ukraine, earlier this year, Ukraine refused to extend the gas transit contract with Russian oil and gas giant Gazprom. But just a few weeks later, at the end of January, Ukraine's national energy company Naftogaz began buying gas from EU countries at higher prices.

Although Ukraine buys gas from EU countries, Mr. Kucherenko asserted that Kiev knows that at least part of the gas it receives is from Russia.

In an interview with the United News Telemarathon 24/7 news program on April 21, Mr. Kucherenko explained that Europe has a single gas market, which applies the replacement principle. Therefore, it is difficult to determine the exact origin of the gas that Ukraine buys from Europe.

However, he affirmed that Ukraine is certainly buying Russian gas, which is being transported via the TurkStream gas pipeline, passing through countries such as Serbia and Hungary, before reaching other consumption points.

We are buying Russian gas, Kucherenko stressed. He also said Ukraine will have to reserve 4.5 to 6 billion cubic meters of gas before this winter to ensure adequate supply for the country's needs.

However, Naftogaz is struggling to find finances to pay for the gas it needs, especially as gas prices in Europe show no signs of falling. This could lead to Naftogaz being forced to increase gas prices for industrial customers.

Mr. Kucherenko also warned that the Ukrainian government may ask the National Assembly to lift or change the terms of the ban on raising prices of housing utility services for people, which has been applied before.

Professor Glenn Diesen, from the University of Southern and Northeast Norway and editor of Russia in Global Affairs magazine, spoke about the issue on social media. He criticized Ukraine for having to pay higher prices than buying gas directly from Russia at cheap prices, instead of buying it through European traders.

Instead of buying cheap gas directly from Russia, Ukraine is buying Russian gas via TurkStream after European traders pushed prices up, he said.

Reuters also reported last week that EU officials have withdrawn plans to ban imports of Russian liquefied natural gas (LNG) in the next package of sanctions against Moscow.

The decision is believed to be due to internal opposition, instability in supply replacement and concerns that the decision will weaken the EU's ability to negotiate in tariff negotiations with the US.

With the purchase of Russian gas through Europe, Ukraine continues to face high costs. Although Kiev's politicians have claimed a cut with Russia, the reality shows that dependence on gas from Moscow is still huge, even in the form of indirect through EU countries.

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