Alexey Belogoryev, Deputy Director on Energy Studies at the Institute for Energy and Finance, commented on the possible economic consequences of the Nord Stream 2 launch for Russia, Ukraine and Europe to the weekly Arguments and Facts.
The launch of Nord Stream 2 allows Gazprom to reduce gas transit through Ukraine after 2024, when the current contract expires, and, if necessary, to reduce supplies through the Yamal-Europe gas pipeline running through Belarus and Poland, - Alexey Belogoryev said. - The benefit is twofold: reducing the risks of gas transportation to Europe (relations with Ukraine and Poland are sometimes difficult) plus reducing the cost of transporting Russian gas due to a shorter route and more modern technical facilities.
Some part of the "blue fuel" is likely to go through Ukraine further. The Russian President Vladimir Putin assured that our country is ready to transport gas through a neighboring country after 2024, but the volumes will depend on the demand for it in Europe.
“During peak periods, the demand for gas in Europe increases, and without Ukraine we have almost no reserve capacities that could be used in such a situation,” Belogoryev notes, “therefore, it is advisable to keep Ukrainian transit at least at the level of 15-25 billion cubic meters per year".
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