Alexey Gromov, Principal Director on Energy studies of the Institute for Energy and Finance, commented to the business newspaper Vzglyad on the prospects for continuing the Russian gas transit through Ukraine after 2024.
Signing long-term contracts no longer makes sense, and switching to such an auction system is convenient for all three sides of the process, the expert believes."Ukraine has changed its legislation on the GTS operation, now it complies with European principles. Therefore, after 2024, it can use the auction system for short–term booking of the Ukrainian GTS capacities," Alexey Gromov says.
Gas consumption in the EU has fallen sharply, industry has suffered, but now they can experience the lack of Ukrainian transit much more easily.
Even the current delays in LNG supplies from Qatar to Europe have no effect on spot gas prices, he adds."It is difficult to expect that demand for gas will grow in the European market, so I do not expect radical price fluctuations in the European gas market either," Gromov notes.
"It is worth understanding that the Europeans will gradually abandon Russian gas, and by 2030-2035 they will do it almost completely. Gazprom's long–term contracts with European countries expire by this date," Alexey Gromov says.
Subscribe for updates
and be the first to know about new publications