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    Kyiv suspends gas export batches [correction]

Summary

Government decree also suspends exports of domestic coal and fuel oil.

by: Callum Cyrus

Posted in:

Complimentary, Natural Gas & LNG News, Europe, Security of Supply, Political, News By Country, Ukraine

Kyiv suspends gas export batches [correction]

This article has been corrected to remove erroneous statements that suggested Russian gas transit via Ukraine had been halted or subject to a ban. NGW apologises for this error.

Ukraine's government published a resolution on June 13 prohibiting the export of the country's gas, coal and fuel oil, to conserve supply amid Russia's invasion, Reuters reported.

Small quantities of natural gas are typically shipped across Ukraine's western frontier for European trading. The move does not relate to the much larger-scale Russian gas transit volumes that pass through Ukraine to Europe.

Power supplies in Ukraine have remained largely stable given the circumstances. Grid operator Ukrenergo severed the interconnector from Ukraine to Russia soon after hostilities began, and an accelerated link to continental Europe is now being used instead.

However, since the invasion began power losses have affected more than 4mn Ukrainian households. Russian forces now occupy the Zaporizhzhya nuclear plant in southern Ukraine, following a fierce shelling attack on the site.

Ukraine on May 11 and 12 secured €50mn ($52.2mn) of financing from the European Bank for Reconstruction and Development to assist power generators amid the turmoil, as well as to protect food resources for Ukrainian civilians. The money includes existing Ukrenergo financing, and a first loss guarantee from the European Fund for Sustainable Development.

The gas export ban comes as Ukraine's national oil company Naftogaz has agreed to purchase LNG and green hydrogen from a Quebec company in an MoU announced June 10. The LNG, from a project that has yet to earn regulatory approval, would likely be delivered indirectly, perhaps via Poland's Swinoujscie import terminal, given that domestic options have fallen by the wayside.