Gazprom is increasing pumping through the Gas Transmission System of Ukraine and is likely to exceed its obligations, but it is unprofitable to increase supplies even more, President of the Russian Federation Vladimir Putin said at a meeting on energy development.
"Our contractual obligations for deliveries through the GTS of Ukraine are 40 billion cubic meters of gas per year. And over the nine months of this year, Gazprom has increased these supplies, this pumping, more precisely, through the transport system of Ukraine, by more than 8%. It is safe to say that we will exceed our contractual obligations for gas supplies through the territory of Ukraine," Interfax cites the words of the President of the Russian Federation.
Putin noted that it is economically unprofitable for Gazprom to further increase transit through Ukraine due to the high transit tariff in excess of the levels stipulated in the contract.
At the same time, pumping through the new systems is significantly—by about $3 billion a year—cheaper with the corresponding supply volumes.
The President of the RF called the European Commission's policy of curtailing long-term contracts for gas supplies "an obvious mistake".
"The practice of our European partners, this practice has once again confirmed that, in fact, they had made mistakes. We have spoken with the previous composition of the European Commission. All its activities were aimed at curtailing the so-called long-term contracts. It was aimed at the transition to exchange gas trading. It turned out that today it has become absolutely obvious that this policy is erroneous," Putin believes.
In his opinion, such a policy does not take into account the specifics of the gas market due to many factors of uncertainty.
"Consumers, including fertilizer producers, are losing price targets at all. All this leads to disruptions and imbalances. As a result, now the gas price has broken all all-time highs," Putin said.
As reported, Gazprom stopped the transit of gas to Hungary through Ukraine on the morning of October 1. According to the GTS Operator of Ukraine message, this happened even despite the fact that the Ukrainian capacities in the Hungarian direction had been contracted until September 30, 2022 in the amount of more than 24.5 million cubic meters per day.