US Proposes Rerouting Russian Gas to Europe via Ukraine
What happened
The United States has discussed with Russia the possibility of restoring natural gas flows to Europe through pipelines running through Ukraine, according to reports citing sources involved in the talks. This idea was floated by envoys of Donald Trump, Jared Kushner and Steve Witkoff. The proposal would involve selling Russian gas through a U.S. intermediary, though it would face legal obstacles under European Union restrictions on Russian gas imports.
From oilprice.com
Why it matters
The proposal addresses the expiration of the five-year deal between Gazprom and Ukraine, which led to a suspension of Russian gas transit. A renewed deal could lower gas prices for European consumers as winter demand rises, while also providing the Ukrainian government with needed revenue.
From oilprice.com
Who's involved
- Jared KushnerAmerican envoy who floated the proposal for US-Russia energy discussions.
- GazpromRussian oil and gas company whose gas flows are the subject of the proposal.
- EuropeThe continent that would receive the gas and whose consumers would see price changes.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- EuropeSpeculative
European consumers might see lower gas prices as the proposal could restore Russian gas flows.
- KyivSpeculative
The Ukrainian government could gain badly needed revenue if gas transit from Russia is renewed.
- GazpromSpeculative
Gazprom might face a shift in its European market share due to the potential new supply route.
- ShellSpeculative
Companies like Shell could see a shift in their competitive position due to a potential new Russian gas supply route.
Possible ripples
Who this could reach next, traced step by step from the reporting. Possibilities worth considering, not forecasts.- Affinity Partners may capitalize on proposed Russian gas reroutingAffinity Partners may benefit from proposed Russian gas reroutingPossible
- European Commission may adjust rules for Russian gas reroutingThe European Commission may need to adjust rules for Russian gas dealPossible
- How could the proposal to reroute Russian gas through Ukraine affect Volodymyr Zelenskyy?Renewal of Russian gas transit could provide Ukraine with badly needed revenue.Possible
- New gas transit proposal may provide needed revenue for KyivThe proposal to reroute Russian gas through Ukraine could provide Kyiv with badly needed revenue.Possible
Keep exploring
The entities involved
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Europe
terrestrial continent located in north-western Eurasia
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Jared Kushner
American businessman and real estate investor (born 1981)
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Gazprom
Russian oil and gas company
Nothing else this week.
Related events
- Russian crude exports continue through Druzhba pipeline while Jetten rejects gas restoration, and the US explores Sakhalin oil projects.
- Gas from the Power of Siberia 2 pipeline was intended for the European market, despite market losses caused by the 2022 Ukraine invasion.
- Russia's gas imports to Europe decreased significantly as the Middle East conflict drives up gas prices.
- Kirill Dmitriev, a Russian representative, attends G20 talks in the US regarding Ukraine and energy.