Gazprom threatens to end Russian gas transit via Ukraine

Russia may impose sanctions against Ukraine over Ukrainian oil and gas company Naftogaz' lawsuits against Russian gas giant Gazprom, Alexei Miller, CEO of the Russian gas firm, said on July 7, as cited by Interfax.

This may lead to the end of cooperation between Russian companies and Naftogaz, Miller warned.

Despite Russia's aggression against Ukraine, the transit of Russian gas through Ukrainian territory to Europe still continues.

Naftogaz filed a lawsuit against Gazprom with the International Court of Arbitration in Paris in September 2022. It asked for overdue payments from Gazprom for gas transit through Ukraine.

The Russian company rejected Naftogaz's demands.

Miller also reminded that Naftogaz had also filed a $5 billion lawsuit at a U.S. court against Russia for lost property in occupied Crimea.

"If Naftogaz continues such unscrupulous actions ... then any relations between Russian companies and Naftogaz will be simply impossible," he said.

Ukrainian Energy Minister Herman Halushchenko told the Financial Times on June 22 that the renewal of Naftogaz' contract with Gazprom is unlikely after 2024 due to Russian aggression.

The point of contest between the two companies was the transit through the Sokhranivka facility in Luhansk Oblast. In May 2022, Naftogaz was forced to stop transit through Sokhranivka due to Russian occupation and offered its Russian counterparts to pump more gas through another access point.

Russia, however, refused to increase the transit and to pay for Ukraine's losses.

Miller accused Naftogaz of using Sokhranivka as a fabricated pretext, saying that the Ukrainian company does not accept Russian gas at the access point in question but demands payment for it anyway.