Russia’s Gazpromtrans will stop accepting orders for LPG shipments to Ukraine


As the crisis in Ukraine worsens, Gazprom Trans, a subsidiary of Russia’s state-owned gas monopoly Gazprom, said it has suspended orders for transportation of liquefied petroleum gas (LPG) to Ukraine since February 18. .. Increasing political tension between the two countries.

Gazpromtrans told the client to consider other destinations for supply, but on request, even if the property is damaged during delivery, the existing order will be fulfilled and the customer will be fully satisfied. He said he would continue to provide good compensation.

On February 21, Russian President Vladimirputin ruled the independence of the Luhansk and Donetsk regions of eastern Ukraine by pro-Russian separatists after several weeks of tense military buildup in the region since 2014. After stating that it has officially acknowledged that it has been done. NATO and the Russian army.

Putin’s announcement spurred the sale of Russian assets, pushing global oil prices to their highest levels since 2014.

Putin deployed troops in two areas shortly after the statement, denying that his actions were aggression and urging the United States and the European Union to discuss potential sanctions.

In a vote on 22 February, the Russian House of Representatives ratified the “Friendship, Cooperation and Mutual Support” treaty between the two secession republics and Russia, and approved Putin’s use of military force abroad.

Last year, a Russian oil freight company shipped 64,000 tonnes of LPG to Ukraine. It accounts for 10.7 percent of Russia’s total fuel supply to the country.

Putin said Russia will continue to supply uninterrupted natural gas to the global market after Germany suspends certification of the Nord Stream 2 submarine gas pipeline.

“Russia aims to continue uninterrupted [gas] Supplying the global market, including liquefied natural gas, will improve the relevant infrastructure and increase investment in the gas sector, “putin said.

Russia
Russian President Vladimir Putin speaks in a speech to the country on February 21, 2022 in the Moscow Kremlin. (Alexey Nikolsky / Sputnik / AFP via Getty Images)

In response to the Kremlin’s recent actions, President Joe Biden announced at the White House on the afternoon of February 22 that the United States would impose new sanctions on the Russian elite and two banks.

“This is the beginning of Russia’s invasion of Ukraine … so I will start imposing sanctions accordingly,” Biden said in a 10-minute statement.

“As I said last week, protecting freedom will cost us and here at home. We need to be honest about it,” he added.

“When everything is said and done, we will judge Russia by its actions, not by the Russian language.”

“No matter what Russia does next, we are ready to respond with unity, clarity and conviction … I hope diplomacy is still available,” Biden said. Told.

Biden appeared an hour late at the White House press conference at 1:00 pm and left without asking questions.

Ukrainian President Volodymyr Zelensky urged Europe to shut down the gas pipeline “immediately” after the Kremlin approved the separatists.

The European Union has blacklisted more Russian politicians, lawmakers and officials, banned EU investors from trading Russian government bonds, and targeted imports and exports with separatist republics. Agreed on four-part sanctions.

Germany, Russia’s largest gas consumer, immediately suspended Nord Stream 2 pipeline certification shortly after Prime Minister Olaf Scholz made a consensus decision with the EU and its allies.

Until recently, the Germans were in great favor with the pipeline project, despite security opposition from the United States and other countries in the region.

However, Europe has about 46% of the natural gas requirements from Russia, and Nord Stream 2 should supply much of the required intake.

Russian energy minister Nikolay Shulginov said Nord Stream 2 European investors could be brought to court if EU sanctions were terminated on a $ 11 billion project. interview With energy intelligence.

Russia’s energy minister ridiculed the EU’s decision that Europe could not immediately replace large amounts of Russian gas with LPG from elsewhere without causing a shortage.

The Yamal gas pipeline, which sends Russian gas to Germany west via Poland, was switched to the east and sent gas back to Poland.

“Welcome to a new world where Europeans must immediately pay 2,000 euros per 1,000 cubic meters!” Former Russian President Dmitry Medvedev said on February 22. Twitter posts.

After recent heightened tensions between Russia and Ukraine, European spot gas prices rose 10% to € 78.55 per megawatt hour (MWh), a record high of € 186.25 per MWh on December 21. Is well below.

Most liquid gas from Gazprom to Ukraine is currently done through low spot sales delivery contracts due to seasonal factors in winter, but if the crisis lasts until March or April, according to analysts, Ukraine The market may feel a shortage of LPG supply.

Reuters contributed to this report.

Brian Jung

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Brian S. Jung is from New York City and is a resident with a background in the political and legal industry. He graduated from Binghamton University.



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