Gazprom, a Russian gas exporter, have announced a major drop in volume of gas exported to mainstream Europe; within a 24-hour duration.
The Kremlin-controlled company; which ships gas via a Ukrainian route stated that Tuesday’s gas export measured at 95.8 million cubic metres had dropped substantially to 72 million cubic metres as at Wednesday’s estimation. The toll means that a quarter-gas export loss was recorded within the space of a day.
Meanwhile Kyiv have blamed the shutting of its major export route to activities of Russian troops in that region. With eight percent of Russian gas being supplied to Austria, Italy, Slovakia and other countries in eastern Europe, Gazprom and other gas exporters will look to leverage on other channels to ship gas products to Europe.
The halt is the first disruption of Russian exports through Ukraine territory since the invasion began some weeks ago. It also comes after the European Union called for companies to stop purchase of Russian gas in rubles end of list.
Flows through the Sokhranivka transit point will be suspended; as announced by GTSOU, the body responsible for operating Ukraine’s gas system. This will disrupt about one-third of fuel exports via pipeline from Russia to other European states.
Declaration of ‘force majeure’ is also imminent, while a proposition to divert European deliveries to the Sudzha entry point was put forward. The region is known as the biggest of two crossing points within Ukrainian shores.
Gazprom stated that gas supply security have been downplayed following this latest move by Ukraine. The move could spell doom for both Bulgaria and Poland; who recently rejected a new payment mechanism to obtain Russian gas; subsequently halting their gas supplies.
Europe’s conventional gas price was also dealt a blow following Wednesday’s disruption in supply. A third quarter increase of 100 Euros per megawatt-hour was recorded at market-opening price before falling back.
However, there was no stopping the 250 percent increase in gas price from last year.