Expert explains potential losses for Russia if Ukraine halts gas transit

He shared his opinions with Espreso TV.

"In the event of zero transit, Ukraine would lose $800 million, while Russia would face a $5 billion loss. According to Roman Malyutin's plan — he was recently appointed as the head of Ukrtransgaz for a three-year term — reducing pressure in our system could help avoid raising domestic gas prices. By allowing Europeans to utilize our underground storage facilities and gas transportation system instead of relying on Russian infrastructure, we may be able to prevent a price increase," Zakrevskyi said.

In this case, Russia will lose $5 billion, which supported the entire Urengoy-Pomary-Uzhhorod pipeline, said the chairman of the board of the Ukrainian Oil and Gas Association.

"What will happen to Russia? Now the Russians will have to pay for the operation of this thousand-kilometer system themselves. Unlike us, who have underground gas storage facilities and can make money on it, they have nothing to make money on except their own people. But this requires money. Ukraine is prepared for a scenario of zero transit, but Russia did not anticipate this situation. For example, I don't really understand how they will maintain pressure in the system. If the pressure is not maintained, houses will not be heated," he added.

This scenario involves the degradation of Ukraine’s gas transportation system. Out of 80 gas transportation stations, about 20 will remain, the expert said.

"This shows that the strikes that Russia can make on our gas transportation system can continue for a very long time until they destroy all 60 stations. We don't need that," he summarized.

• On August 8, Bloomberg reported that the price of natural gas in Europe had risen since December last year due to fighting in Russia's Kursk region, where a key entry point for Russian gas into Ukraine is located.