Russia Gas Transit Payment Goes Through After Glitch

Russia Gas Transit Payment Goes Through After Glitch
Russia's payment to Ukraine for natural gas transit this month has gone through without problems, according to people familiar with the situation.

Russia’s payment to Ukraine for natural gas transit this month has gone through without problems, even after a glitch with a similar oil transaction, according to people familiar with the situation.

State-run Gazprom PJSC sent its regular monthly payment to Ukraine’s NJSC Naftogaz Ukrainy last week and it has been accepted, according to people on both sides, who asked not to be named as the information isn’t public. 

Traders were on edge about possible disruptions to the crucial payment after shipments through one branch of the Druzhba oil pipeline were halted in early August after a financial transfer from Russia to Ukraine was snarled because of European sanctions. The issue was resolved last week.

Representatives for Gazprom didn’t respond to a request for comment. Naftogaz had no comment.

Russia is squeezing its gas supply to Europe, pushing energy prices to records and driving a cost-of-living crisis. Flows through the main pipeline, Nord Stream, are at just 20%, while transit through Ukraine is also well below usual.

--With assistance from Elena Mazneva.



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