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Gazprom has officially stopped gas supplies to the LC and the DNI, to the report of the monopolies in the first quarter of the company. So, in January—March the volume of supplies to Ukraine to zero — until now, Gazprom has always disclosed the LC and the DNI in this graph, according to the official position of the Russian Federation to recognize the Republic as part of Ukraine.

According to the old logic of “Gazprom” to pay for the gas was to “Naftogaz of Ukraine” as the only Ukrainian company with which the monopoly was a contract in force before the end of 2019.

In Gazprom, “Kommersant” reported that has stopped disclosing the volume of supply in the LC and the DNI due the lack of the contract with “Naftogaz” refused to comment further. In “Naftogaz”, “b” did not answer.

the DNI and LC are supplied with Russian gas since February 2015 after “Naftogaz of Ukraine” interrupted supplies to the breakaway Republic, saying that the pipelines are destroyed due fighting. In fact Kiev was a new policy aimed at ending trade with the uncontrolled territories.

the Legal status of supply were controversial: Gazprom believed that the supply must pay “Naftogaz of Ukraine”, recording them in the company’s debt, “Naftogaz” from these obligations were refused. Thus, the entire financial burden for delivery in the Republic rests on Gazprom itself, with the company finally resigned, agreed not to consider this issue during the General dispute settlement “Naftogaz” to the end of 2019.

Just in the DNI and LC was about 12 billion cubic meters of gas, including 2.75 billion cubic meters in 2019.

Russian gas, of course, continue comes to Eastern Ukraine, but now “Gazprom” had to find a new legal scheme to do this. “B” is not managed to figure out how it exactly looks like, but there are two possibilities.

In the first case, delivery can be arranged through the company proxy, that is not afraid to fall under sanctions due works with the unrecognized republics. Interlocutors “” consider the most likely possible mediator of the structure of the “Gas Alliance” Sergei Kurchenko, who is actively engaged in trading of petroleum products and coal in Eastern Ukraine. However, in this case, the company-broker had to get permission to export gas (by law it can only make “Gazprom”), which seems unlikely.

gas Consumption under this article across the GTS is very large: in 2019, it amounted to 38 billion cubic meters in 2019 — of 40.14 billion cubic meters. The needs of the DNI and LC will be only 6-7% of these volumes and will be hardly noticeable against the background annual variations. A similar scheme is used to supply power to the LC and the DNI from Russia after Ukraine’s refusal of supply of electricity: the “humanitarian supplies” are written off on technological losses Federal grid company and are considered at calculation of tariffs for Russian consumers.

Tatiana Woodpecker, Yuri Barsukov