Gazprom keeps gas flowing via Ukraine as rouble-payment row continues

Quantum Commodity Intelligence - Gazprom has continued supplying gas for transit to Europe through Ukrainian territory as per normal on Friday, the Russian gas giant's spokesman Sergei Kupriyanov told reporters, albeit at slightly reduced levels due to the drop in demand.

The comments were relayed via Russian news agencies, including TASS and Interfax, as the stand-off between Russia and Europe over payment in roubles is set to intensify.

"Gazprom is delivering Russia gas for transit through Ukrainian territory normally, in line with orders from European customers - 71.6 million cubic meters for April 15," the Russian gas giant's spokesman Sergei Kupriyanov told reporters.

The nomination for Thursday was 81.1 mcm, whereas deliveries under long-term booking for gas transit via Ukraine are around 109.5 mcm per day, as demand dropped on warmer temperatures and reduced industrial consumption due to the holiday weekend. 

Benchmark European natural gas prices retreated over the past week, with May TTF futures closing Thursday at €95.62/MWh Tuesday afternoon, having traded at a post-invasion low of €87.19/MWh earlier in the session.

Interfax also reported that the Yamal-Europe gas pipeline had been continuously operating in reverse on the section between Germany and Poland since April 7. The reverse flow from Germany to Poland rose to 0.5 mcm per hour on Friday, referencing data from gas transport operator Gascade.

Meanwhile, Russian Deputy Prime Minister Alexander Novak said on Friday that several buyers of Russian gas have agreed to switch to payments in roubles.

"We expect the decision (to switch to roubles) from other importers," he said in comments published in the ministry's in-house magazine.

He did not disclose the identities of customers who had already switched, but Armenia has confirmed it made several rouble-denominated payments, while Hungary has also indicated it was prepared to pay in roubles for Russian gas.