Business Maverick: Gazprom Threatens to Reduce Gas Flows to Europe Via Ukraine

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Gazprom PJSC threatened to cut its gas flows sent via Ukraine next week, just as cold winter temperatures prompt Europeans to start tapping their stores.

The Ukraine route is the last remaining pipeline still bringing Russian gas to western Europe as Moscow has progressively squeezed supplies to the continent since before the war. Traders and policy makers have been bracing for flows on that line to be curbed too, and prices rose as much as 5.2% on the news, while a few months ago the move could have been much more dramatic.

Ukraine delivered all volumes assigned for Moldova in full, the country’s transmission system operator said on its. All Moldova-bound gas received at the Sudzha cross-border point with Russia was shipped on via the Oleksiyivka and Hrebenyky exit points on the Moldovan border. There are concerns in Europe that the issue with Moldova may be the beginning of a complete shutdown as disputes over contractual clauses and regulation have been a feature of the meltdown in economic ties between Russia and the west. Even with fuller-than-normal inventories providing some buffer, winter without any Russian gas would be a challenge for Europe.

 

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