Less flow: transit gas from Russia to Ukraine drops
Russia-Ukraine transit gas down 50%
Transit of Russian gas through Ukraine to Europe has dropped almost 50% in the first four months of this year against the same period last year, Ukraine's energy ministry said today.
Russia transported 23.2 billion cubic metres of gas through Ukraine to Europe against 46.3 Bcm last year in January-April, according to the ministry's statement, wrote Reuters.
Economic growth in Europe has stalled and industrial activity has been cut, leading to far lower consumption of energy.
A senior industry source told Reuters earlier this month that the transit figure was lower -- at 21 Bcm.
Fees that Russia pays to use the Ukrainian pipeline system to transport gas to Europe are key for the finances of Naftogaz, which needs government financial aid to keep afloat.
Russia pays $1.7 per 1000 cubic metres transported across 100 kilometres.
State energy company Naftogaz has suggested using advance payment of transit fees by Gazprom for its own purchases of gas to boost its reserves.
But with transit falling, it is unclear how much Naftogaz will receive in fees.