Naftogaz of Ukraine is suffering significant losses from the transit of Russian gas, the chairman of the company’s board, Oleksiy Chernyshov, said.
Since May 2022, Ukraine has stopped gas transit through the Sokhranivka route following the Russian occupation of the northern part of the Luhansk region, and Russia refuses to transfer these volumes to the Suja gas station. As a result, Gazprom pays only 66% of what is stipulated in the contract, about $800M out of $1.2B per year. And Naftogaz is contractually obliged to reserve all the capacity of the Ukrainian GTS.
“That’s why we currently receive less than we pay to the GTS Operator,” said Chernyshov.
Since September 2022, Naftogaz has been challenging Russia’s underpayment for transit in Stockholm arbitration. According to the head of the company, a decision will be made at the beginning of 2026. Naftogaz’s current claim is $800M, but this amount will increase to almost $1.4B by the end of the year.