Ukraine interrupted the flow of Russian gas by shutting down key pipelines that run through areas of Ukraine occupied by Russian troops.
“Ukraine no longer bears responsibility for the transmission of Russian gas through Ukrainian territories under Russian military occupation,” Ukraine’s state gas company Naftogaz said on Tuesday (May 10).
Ukraine halted the flow of gas through a border entry point in the east of the country that accounts for about a third of Russian gas exports to Europe that go through Ukrainian territory. Gas prices in Europe jumped on Wednesday (May 11) morning after the announcement, but prices stabilized later in the day as the gas started flowing through alternative pipelines.
The incident highlights the fact that despite the war, Russian gas is still flowing through Ukrainian pipelines, and Ukraine is pocketing millions each month in transportation fees from Gazprom, Russia’s state-owned gas company.
Ukraine makes billions each year from transporting gas for Gazprom, a profit that will be reduced if the Nord Stream 2 natural gas pipeline is ever complete. Nord Stream 2 would connect Russia and Germany, but the project was suspended by German Chancellor Olaf Scholz right before Russia invaded Ukraine.