Ukrainian forces reportedly seize key station for gas transit from Russia to Europe in Sudzha, Kyiv and Gazprom say supply unaffected

The Ukrainian military has established control over a key station for gas transit in the Russian town of Sudzha in the Kursk Region, as per reports from Russian pro-war Telegram channels, including the self-styled Russian “war correspondent” Yury Kotenok and Rybar. The Russian pro-war channel “Senior Pogrannaryad” (lit. “Senior Border Guard”) claims that the town of Sudzha is in an “operational encirclement.” There has been no official information about the situation at the Sudzha gas metering station as of yet.

Despite the unconfirmed claims, gas is continuing to flow through the metering station in Sudzha, according to a Reuters report citing Russia’s Gazprom and the Gas Transmission System Operator (GTSO) of Ukraine.

Data from the Ukrainian operator indicates that 41.6 million cubic meters of gas are expected to transit from Russia to Europe via Ukraine on Thursday. Gazprom announced it would send 39.4 million cubic meters (mcm) of gas to Europe via Ukraine on Wednesday — down from 42.4 mcm on Tuesday.

Currently, around 42 million cubic meters of gas pass through the Sudzha route daily, with an annual transit volume of approximately 14 billion cubic meters.

“As of 1300 Kyiv time (1000 GMT), gas is being transported to European customers as usual, without any changes. Nominations have been confirmed and the physical flow of gas is maintained,” the Ukrainian operator told Reuters.

Following news of the station’s seizure by the Ukrainian Armed Forces, spot gas prices in Europe rose by over 5% to $430, according to a Bloomberg report.

Sudzha is the sole station currently facilitating the flow of gas from Russia through Ukraine to Europe. Although there are technically two stations, no gas has passed through the Sokhranivka gas metering station since May 2022 — this is due to the fact that its compressor station is located in a Russian-occupied part of Ukraine’s Luhansk Oblast.

As previously reported by The Insider, Russian gas transit through Ukraine has significantly decreased, with only 34% of the 2021 volume being transported in 2023. Gazprom had pledged to supply 65 billion m³ in 2020 and at least 40 billion m³ annually for the next four years. However, only 15 billion m³ was pumped last year, as only one of the two entry points remained open.

An oil and gas market expert speaking to The Insider on condition of anonymity said that if the Ukrainian military establishes stable control over the Sudzha gas metering station, Gazprom might halt supplies, potentially declaring a “force majeure” — a clause invoked when a business is hit by something beyond its control. Ukraine’s state-owned Gas Transmission System Operator (GTSO), invoked such a declaration in May of 2022.

Such a disruption would reduce Gazprom’s export revenues by close to $7-8 billion euros annually. For Ukraine, halting transit would result in the annual loss of about $800 million, despite the contract stipulating $1.2 billion.

Russia is underpaying Ukraine because the latter rejects bids for the Sohranivka station. Meanwhile, Naftogaz — which is the Ukrainian state-owned company responsible for organizing the transit of Russian gas through the country — continues to pay the GTSO in full, reserving its entire capacity. As a result, Naftogaz has incurred losses from the transit of Russian gas for nearly two years. Naftogaz has filed a lawsuit against Gazprom for underpayment in the Stockholm Arbitration Court, with a decision expected in early 2026.

Some European countries remain dependent on Russian gas transit through Ukraine.

Austria, for instance, saw 98% of its gas consumption come from Russia in December 2023 — up from 78% in February 2022, the month Russia invaded Ukraine.

Slovakia and Hungary also rely on Russian gas. Slovakia depends on the Soyuz pipeline, while Hungary primarily receives Russian gas via Turkish Stream.

Fighting in the Kursk Region border areas has been ongoing for 24 hours. Valery Gerasimov, Chief of the General Staff of the Russian Armed Forces, reported to Vladimir Putin that around 1,000 Ukrainian servicemen were involved in the attack.