Regime Faces Sharp Decline In Gas Transit Revenues

Gazprom has bought only a third of the proposed transit capacity of the Yamal-Europe pipeline.

Gazprom refused to reserve additional transit capacity through Ukraine and bought only a third of the proposed transit capacity of the Yamal-Europe pipeline through Belarus. This is evidenced by the results of auctions for reservations in October, says Interfax.

After the end of the annual reservation in September 2021, Gazprom has not made any further reservations for a year or a quarter in advance, noting that it has short-term tools for the reservation. The planned reduction of transit through Belarus is associated with the rapid launch of the new gas pipeline under the Baltic Sea, Nord Stream - 2, after the launch of which there will be no need to pay to the transit countries.

Such steps by Gazprom threaten a sharp reduction in revenues from fuel transit and a reduction in taxes from Gazprom Transgaz Belarus. The economy of Belarus may lose hundreds of millions of dollars.