Gazprom halted natural gas transit to Hungary through the territory of Ukraine

On 1 October 2021, starting from the beginning of the new gas day (07:00), the transit of natural gas through the territory of Ukraine in the direction to Hungary has been suspended. No requests for the transit of gas have been received, despite the fact that Ukraine’s exit capacity to Hungary is contracted for the entire gas year (from 01.10.2021 to 30.09.2022) in the amount of 24.6 million cubic meters per day.

It should be recalled that on October 1, 2021, a contract between Hungary and Russia for the transportation of gas in the amount of 4.5 billion cubic meters came into force, whereby the natural gas is to be delivered to Hungary via the Turkish Stream.

Considering that the import of natural gas from Hungary was conducted by virtual reverse, the possibilities to import from Hungary without transit do not exist.

“For decades Hungary has been obtaining gas through the territory of Ukraine, and the Ukrainian side has never violated its obligations. Moreover, the Ukrainian route is the most economically beneficial, since it is the shortest route for the supplies of gas to Hungary, as evidenced by the trade volumes between the two countries’ companies in recent years,” said Sergiy Makogon, General Director of GTSOU. “The monopolization of gas routes by Gazprom, which we are observing now, raises the question of the fundamental principles of the functioning of the EU gas markets – competition and transparency. The strengthening of the dominance of one player and its use of leverage for obvious political purposes amid a shocking gas prices rise in Europe has to be stopped.”