Analyst points to favorable prices of Russian pipeline gas for the EU

The growth of Russian pipeline gas exports to Europe was due to the attractive price. This was stated to Izvestia on January 13 by Igor Yushkov, a leading analyst of the National Energy Security Fund, an expert and lecturer at the Financial University under the Government of the Russian Federation.

Earlier in the day, Vedomosti, citing Gazprom and the European Network of Gas Transmission System Operators (ENTSOG), reported that in 2024 pipeline gas supplies from Russia to Europe increased by 14% and reached more than 32 billion cubic meters.

"Pipeline gas supplies increased mainly for commercial reasons. In 2023, gas prices on the European market showed a steady decline throughout the year. At the beginning of the year the price started at $650 per 1,000 cubic meters and at the end of the year it was $300. In 2024, prices were mainly growing," Yushkov explained.

The expert noted that at the beginning of 2024 there was a certain minimum, $270 per 1 thousand cubic meters, then the price went up.

According to Yushkov, Gazprom contracts are linked to the exchange price of gas, similar to all other suppliers, but with a certain delay. At the same time, it was more profitable to buy gas from Gazprom in 2024 due to the delay, as spot market prices had already increased.

"Gazprom had the most attractive offer just about every day, so the entire 2024 transit was at maximum through Turkish Stream and Ukraine," the analyst explained.

In addition, "Turkish Stream" sometimes exceeded the design capacity, accordingly, it allowed Russia to put almost technological maximum.

"As much as Ukrainian transits and "Turkish Stream" could work, Russia supplied so much. This year, of course, it will be less, since Ukraine has closed transit through its territory," Yushkov summarized.

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Earlier, on January 12, Slovak Prime Minister Robert Fitzo warned that Slovakia would veto the continuation of financial assistance to Ukraine by the European Union (EU) if the Kiev authorities refuse to resume gas transit from Russia through its territory. According to him, Ukraine is losing €800m in transit fees because it refuses to transit gas that was going through Slovakia to the west.