Gas Futures In Europe Surge After Gazprom's Rejection Of Naftogaz's Claims

Gas futures in Europe surged on Tuesday after Gazprom rejected claims of Ukraine's Naftogaz, according to data from the London ICE exchange

MOSCOW (UrduPoint News / Sputnik - 27th September, 2022) Gas futures in Europe surged on Tuesday after Gazprom rejected claims of Ukraine's Naftogaz, according to data from the London ICE exchange.

As of 15:40 GMT, October gas futures were trading up 14.8% at $1981.7 per thousand cubic meters, earlier jumping to $2,103.5 (+21.9%).

Gazprom said earlier on Tuesday that it categorically rejected Naftogaz's claims "on initiated proceedings" in arbitration regarding the transit of Russian gas to Europe, since services not provided by the Ukrainian side should not be paid. The Russian gas giant also stressed that it considered the position of Naftogaz unfriendly, and believed that its preservation could become the basis for Russian sanctions against the Ukrainian company, and this would mean a ban on Gazprom from fulfilling obligations to it, including payments.

Since May 11, Ukraine has stopped receiving gas for transit through the Sokhranivka gas measuring station, citing the fact that it was under the control of Russian forces (on the territory of the LPR). As a result, there was only one entrance left for gas transit to Europe Sudzha gas measuring station. Gazprom stated that the transfer of all volumes to Sudzha was technologically impossible, the company was fulfilling all obligations to European consumers, and transit services were fully paid.