In August 2021, natural gas transit via the Ukrainian GTS to European countries amounted to 3.838 billion cubic meters. Throughout the reporting period, Gas TSO of Ukraine transited to Poland – 0.34 billion cubic meters of gas, to Slovakia – 2.5 billion cubic meters, to Hungary – 0.8 billion cubic meters, to Moldova – 0.19 billion cubic meters.

At the beginning of 2021, Gazprom in line with the terms of the transit contract, reduced the volume of gas transported via Ukrainian GTS from 180-185 million cubic meters per day to some 124 million cubic meters per day. Such booking level was maintained for the past five months. However, at the auction on August 16, Gazprom booked for September only 4% (0.65 million cubic meters per day) out of the proposed 15 million cubic meters per day of additional guaranteed transit capacity through the Ukrainian gas transportation system. That is, the volume of gas transportation through the territory of Ukraine in September will decrease even more – to 109 million cubic meters per day – the minimum amount provided for by the existing transit agreement until 2025.

According to Sergiy Makohon, General Director of Gas TSO of Ukraine, the record rise of gas prices at European gas hubs was the consequence of such a transit policy, according to which the volume of transportation in 2021 decreased from 65 to 40 billion cubic meters. In particular, on September 1, the price of October gas futures on the European stock exchange reached $ 650 per thousand cubic meters. The price of gas in Europe has almost tripled over the year.

“Ukraine constantly offers additional transit capacity to supply additional volumes of gas to the EU. However, Gazprom, unfortunately, constantly refuses them. It seems that by acting this way Gazprom not only encourages further growth of gas prices in the EU, but also sends very transparent signals to Europe that additional gas volumes are only possible via Nord Stream-2,” says the Director of the GTSOU.