Although Russia has attacked Ukraine, natural gas from Russia continues to flow through Ukraine. The “Kyiv Independent” (source here) has written down why Ukraine is still going along with the procedure and why Russia can continue to make billions.
Russia pays Ukraine fees for transporting its gas through thousands of kilometers of underground Ukrainian gas pipelines. Selling the gas to European countries brings Russia billions in profits. Ukraine could have stopped the gas deal when the war broke out, thus preventing Russia from trading in the gas. But that would have hit Ukraine’s allies hard and triggered a global energy crisis.
Instead, Ukraine has made it clear that the deal will not be extended beyond 2024. Until then, the partners should find alternative energy sources. In addition, Ukraine is trying to use its pipelines to bring gas from Azerbaijan to Europe.
Although both sides – Ukraine and Russia – benefit from the agreement, Russia’s revenues from gas sales exceed Ukraine’s revenues from transport. According to the report, the former head of the Ukrainian pipeline operator GTS Operator estimates that Russia earns about five billion dollars annually from the agreement.
Ukraine, on the other hand, is expected to have earned only $800 million in 2023. The majority is said to have been spent on maintenance and operation, leaving Ukraine with only about 100 to 200 million dollars.
Anyway: As European countries take steps to diversify their energy sources and reduce their dependence on Russia, the share of Russian gas in the EU’s natural gas imports has fallen from 45 percent in 2021 to 15 percent last year, according to the report.
The most important news of the day at a glance:
- The European Parliament is calling on EU member states to allow Ukraine to use Western weapons against military targets on Russian soil. Ukraine must have the opportunity to fully defend itself, the parliament said. Without the lifting of restrictions, this would not be possible to the full extent.
- Germany plans to increase its military aid to Ukraine by almost 400 million euros this year. This is stated in a letter from the FDP-led Federal Ministry of Finance to the Bundestag’s Budget Committee. In it, State Secretary of Finance Florian Toncar asks for approval of the special expenditure of up to 397 million euros. The Ministry of Finance also plans to give the green light for the additional requirement. You can read more about this here.
- The European Union is providing Ukraine with 160 million euros from the proceeds of frozen Russian assets as winter humanitarian aid. The main reason for this is the considerable damage caused by Russian attacks on Ukraine’s energy infrastructure, says EU Commission President Ursula von der Leyen.
- Despite protests from Ukraine, the Zurich Film Festival has included a controversial documentary about Russian soldiers in the Ukraine war in its program. “Russians at War is an anti-war film in which soldiers openly criticize (Russian President Vladimir) Putin and Moscow’s war,” the organizers at Platform X justified their move.
- According to Kremlin chief Vladimir Putin, the Russian arms industry has multiplied its production this year. “These days, defense industry enterprises are working rhythmically and precisely, doing everything necessary to provide the armed forces with modern weapons, technology, ammunition and equipment for special military operations,” Putin praised at a meeting of the Military and Armaments Commission in St. Petersburg.
- The International Energy Agency (IEA) warns of electricity shortages in Ukraine during the winter. The deficit of up to six gigawatts could correspond to about a third of the expected demand, the IEA says. “Attacks on the infrastructure, unforeseeable outages and missed maintenance cycles pose further risks,” the agency says. To ensure energy supplies, the IEA is calling for repair and construction work to protect the plants from attacks.
- The Russian army says it has captured another village in the eastern Ukrainian region of Donetsk. The town of Georgiyivka has been captured, the Defense Ministry in Moscow announced. In recent weeks, the ministry has repeatedly reported military successes at the front, where Ukrainian troops are obviously under massive pressure.
- The Ukrainian parliament has renamed a total of 327 localities in the country. The measure is intended to free the country from its Soviet and Russian heritage, said one of the authors of the law, Roman Losynskyj, on Facebook. He wrote of a “historic decision” that would, however, be followed by further renamings.
Background and analysis:
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