Gazprom Starts Dismantling Pipes for Transit through Ukraine

Gazprom has launched dismantling pipes for gas transit through Ukraine, said the head of the Gas Transition System operator, Sergiy Makogon, in an interview with OilPoint. According to him, transit will soon be lost as a revenue source for the Ukrainian budget. “The fact that Gazprom has begun to dismantle pipes on its territory through which gas is delivered to the border with Ukraine is a problem, but we cannot particularly influence it,” said Makogon. At the same time, he emphasized that Kiev is not refusing transit, but it is the Russian company who seeks to stop it. If supplies through the territory of Ukraine are terminated, Makogon added, the GTS operator will have to curtail and work on the domestic market. Transit contract Late last year, Russia and Ukraine agreed on a package of transit agreements. The five-year contract provides for pumping 65 billion cubic meters of gas in the first year and 40 billion cubic meters in the remaining four years. Also, the parties agreed to resolve legal disputes and signed an agreement to waive claims in which the court has not yet made a final decision. Gazprom also paid Naftogaz $2.9 billion, as required by the Stockholm arbitration verdict. In turn, the Ukrainian company refused claims to the Russian concern in the amount of $7.4 billion. Kiev has repeatedly stressed that the implementation of the Nord Stream 2 project will put an end to the Russian gas transit through Ukraine. In April, Makogon announced that the Ukrainian side would make every effort to prevent the completion of the gas pipeline.