The annual profit received by Ukraine from the transit of Russian gas will decrease by more than $1 billion after the commissioning of the Nord Stream-2 gas pipeline. Such estimates are given in a report published on Wednesday by the International Monetary Fund (IMF).
As noted in the document, over the past five years, Ukraine has received from the transit of Russian gas “an average of slightly more than $ 2.5 billion per year.”
“In 2021, transit fees are expected to be about 40% lower than in previous years. After the commissioning of Nord Stream-2, the volume of gas passing through Ukraine may further decrease, while Ukraine’s revenues from transit is projected at an average of $1.2 billion per year [until 2024, when the current contract with Russia on gas transit expires]”, – say IMF analysts.
In December 2019, Moscow and Kiev agreed to extend the transit of Russian gas through Ukrainian territory for the period from 2020 to 2024, with the possibility of extending the agreement for another 10 years. As part of a five-year transit contract, Ukraine will receive more than $7 billion.
The Ukrainian authorities fear that Russia may not extend the gas transit contract after the launch of Nord Stream-2. Gazprom has repeatedly confirmed its readiness to continue gas transit through the territory of Ukraine after 2024, provided that it will be economically profitable, as well as provided that the Ukrainian gas transportation system is in normal working order.
The construction of Nord Stream-2 was fully completed on September 10, 2021. It was originally planned to be completed by the end of 2019, but construction was delayed due to US sanctions. The gas pipeline consists of two lines with a total capacity of 55 billion cubic meters. meters per year, which run from the Russian coast through the Baltic Sea to Germany. To launch the gas pipeline, you need to obtain registration as an independent transport operator – the German Federal Network Agency must publish a draft decision by January 8, 2022. The agency cannot prohibit the pumping of gas, but if it starts before registration is received, the operator will be fined. This registration is required to comply with the EU Gas Directive.