World

War Is Raging, But Russia Still Pays Ukraine For This Business

Ukraine crisis: Russia launched a full -scale invasion on 24 February.

It’s been a month since the war began, but Russia is actually sending more natural gas through Ukraine and Moscow is still paying Kyiv in full for fuel transit to Europe.

Daily gas flows from Russia at one point jumped more than 50% from January lows, with deliveries through Ukrainian pipelines more than doubling as energy companies rushed to buy after the invasion. Exports from major European suppliers are becoming cheaper than buying gas on the spot market, and Russia still pays for transit in hard currency, according to Yuriy Vitrenko, chief executive officer of NJSC Naftogaz Ukrainy, Ukraine’s largest state -owned oil and gas company.

It is an awkward situation for European policymakers, who have imposed several rounds of sanctions on Moscow to try to burden President Vladimir Putin’s government with the cash needed to fund the invasion. The increase also comes as European governments promise to rid themselves of Russian gas, with plans to keep nuclear and coal plants open longer and import more liquefied natural gas from countries including the U.S. and Qatar.

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Russian gas flows to Europe soared to their highest level since December in the 48 hours after the war began. State -run exporter Gazprom PJSC said supply increased due to more orders from European customers, and for some time, shipments via other major Russian pipelines crossing Belarus and Poland and ending in Germany resumed after a two -month hiatus.

The increase in imports from Russia reflects the lack of options available to European customers in the near term to meet demand, said JPMorgan Chase & Co. analysts. in a report last week.

Naftogaz called on Europe and its allies to put payments for Moscow’s energy flows in escrow accounts until Putin withdraws troops. That would further curb funding to Moscow just as cargoes of crude oil and grain from Russia also find a way to re -flow.

Ukraine has said previously that Gazprom pays about $ 2 billion a year for gas transfer services.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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