One of the two points of entry of Russian gas into Ukraine was closed

Gas flows at the Sokhranivka entry point on the Russian-Ukrainian border stopped this morning, in the first serious disruption to Europe’s gas transmission system since the Russian invasion on February 24, according to Bloomberg.

Transportation of Russian gas through the Sokhranivka entry point has been halted as Russian occupying forces disrupt the plant’s operations, according to the Ukrainian management company. The head of the company said yesterday that larger quantities could be transported from the Sudzha entry point, which remains under Ukrainian control, but Russia’s Gazprom claimed that this was technically impossible.

Flows, however, increased through the Sudzha station, alleviating some of the concerns. Gas prices, although found to jump up to 6.8% in the morning, are now falling more than 2%.

Ukraine’s GTSOU – the country’s gas system operator – announced yesterday that it was suspending Russian gas supplies from the Sokhranivka entry point as a result of force majeure as it could not control infrastructure in the occupied territories.

Ukraine has announced that it can no longer accept Russian gas through Sokhranivka from 7 am local time. Transit orders have already dropped to zero, but flows from the Sudzha route are expected to increase by 12% from the previous day, according to Bloomberg.

This is the first time that the war in Ukraine has affected gas supplies to Europe. Russian gas was normally supplied from both points of entry despite the conflict, albeit for the longest time, at lower rates than provided for in the transit agreement.

The Sokhravinka plant manages about a third of the gas flows entering Ukraine. The rest passes through the Sudzha station, which is further away from the occupied territories of eastern Ukraine.