ER Editor: Ongoing drama around Russian oil and gas pipelines that transit Ukraine (no wonder Nord Stream was built precisely to bypass Ukraine). In short, Ukraine wants to raise transit fees on oil deliveries from Russia, and is holding back quantities of natural gas going to neighbour Moldova, which is experiencing an energy crisis.
Ukraine to hike transit fees for Russian oil to EU
Attacks on energy infrastructure are increasing costs for transmission via the Druzhba pipeline, the operator says
ER: As the picture shows below, the pipeline originates in Russia; part of it is hostage to Ukraine. Countries that house pipelines belonging to other countries, such as Ukraine, are entitled to transit fees.
Ukraine has announced plans to raise transit fees for Russian oil running through the Druzhba pipeline to the EU, due to higher costs resulting from Russian air and missile strikes targeting the country’s energy infrastructure.
Ukrtransnafta, the operator of Ukraine’s oil pipeline network, is expected to increase tariffs for transporting crude to Hungary and Slovakia by €2.10 per ton to €13.60 ($13.90) starting on January 1, according to a letter from the company seen by Bloomberg. Its Russian counterpart Transneft confirmed to RIA Novosti that it has received a letter and is studying it.
“We are studying these proposals, preparing relevant reports to the Federal Antimonopoly Service and the Energy Ministry,” Transneft spokesman Igor Demin told the agency.
The Ukrainian company has attributed the price hike to the “continued destruction of Ukrainian energy infrastructure” which has resulted in “a significant shortage of electricity, an increase in its costs, a shortage of fuel, spare parts.”
Ukrainian oil transit fees have already been raised twice this year. The last hike in April reportedly brought the total increase on an annualized basis to 51%.
Druzhba, one of the longest pipeline networks in the world, carries crude some 4,000km from Russia to refineries in the Czech Republic, Germany, Hungary, Poland and Slovakia.
Gazprom threatens cut-off over Ukrainian theft
The company has accused Kiev of siphoning off transit supplies destined for Moldova
Russian energy giant, Gazprom, said on Tuesday that Ukraine was diverting natural gas supplies transiting to Moldova (ER: in the south-western corner of Ukraine), and the company has threatened to curtail deliveries through a key pipeline in response.
“The volume of gas supplied by Gazprom to the ‘Sudzha’ gas measuring station (GMS) for transit to Moldova via Ukraine exceeds the physical volume transmitted at the border of Ukraine with Moldova,” Gazprom’s statement read.
Moldova paid for some November gas supplies on Monday, according to Gazprom, which said that Kiev had kept 52.52 million cubic meters of gas meant for Moldova on its territory.
The Russian energy company further warned that if the transit imbalance persists, then it would begin slashing gas supply to the Sudzha GMS for transit via Ukraine from 10 am (7am GMT) on November 28, “in the amount of the daily underderlivery.”
The Sudzha transit line through Ukraine remains the only route to supply Russian gas to western and central European countries after the Nord Stream network was damaged by a suspicious explosion in September.
ER: This Bloomberg map shows the route of the Sudzha from Russia (top right) down to Moldova:
Later on Tuesday, Kiev accused Gazprom of manipulating the facts. The country’s gas transmission system operator stated that the entire volume of gas accepted by Ukraine at the border with Russia was transferred to Moldova. However, some of that gas is returned to Ukraine in the form of a “virtual reverse,” the operator claimed.
Meanwhile, land-locked Moldova, which has been suffering massive blackouts lately, has called for international assistance as soaring energy costs and skyrocketing inflation are set to put a huge strain on consumers in one of Europe’s poorest countries.
According to the French Foreign Ministry, support is all the more important as Moldova is facing an unprecedented energy crisis as winter approaches.
The Liberty Beacon Project is now expanding at a near exponential rate, and for this we are grateful and excited! But we must also be practical. For 7 years we have not asked for any donations, and have built this project with our own funds as we grew. We are now experiencing ever increasing growing pains due to the large number of websites and projects we represent. So we have just installed donation buttons on our websites and ask that you consider this when you visit them. Nothing is too small. We thank you for all your support and your considerations … (TLB)
Comment Policy: As a privately owned web site, we reserve the right to remove comments that contain spam, advertising, vulgarity, threats of violence, racism, or personal/abusive attacks on other users. This also applies to trolling, the use of more than one alias, or just intentional mischief. Enforcement of this policy is at the discretion of this websites administrators. Repeat offenders may be blocked or permanently banned without prior warning.
Disclaimer: TLB websites contain copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available to our readers under the provisions of “fair use” in an effort to advance a better understanding of political, health, economic and social issues. The material on this site is distributed without profit to those who have expressed a prior interest in receiving it for research and educational purposes. If you wish to use copyrighted material for purposes other than “fair use” you must request permission from the copyright owner.
Disclaimer: The information and opinions shared are for informational purposes only including, but not limited to, text, graphics, images and other material are not intended as medical advice or instruction. Nothing mentioned is intended to be a substitute for professional medical advice, diagnosis or treatment.