This may include ads from us and 3rd parties based on our understanding. Ukraine has a gas transit deal with Russia under threat of not being renewed, according to the state energy firm Naftogaz. Gazprom Russia's state-owned gas company has seen its profits skyrocket because of the EU's energy crunch, which analysts say it has been responsible for orchestrating.
The company's profits soared to 581 billion rubles 5.8 billion compared with a loss for the same period last year ago on sales that soared by almost three-quarters to 2.37 trillion rubles, another record high. It comes as the Kremlin waits for the approval of the new Nord Stream 2 pipeline, which will carry gas from Russia into Germany, bypassing Ukraine and Poland. Following the dissolution of the Soviet Union, the majority of Russian gas exports to the EU flowed through existing pipeline infrastructure in Ukraine. Russia tried to diversify its gas network and reduce its dependence on its neighbour, laying new pipelines through Belarus and Poland in the NIneties and Noughties.
Russia has been accused of reducing supplies of gas to speed up certification, which was suspended recently, causing prices to spike in Europe. Despite its role in the certification process, Naftogaz CEO Yuriy Vitrenko said it had no power to stop the completion of the Nord Stream 2 pipeline. There is a chance that Russia will not be able to supply gas through Ukraine beyond a 2024 deal, as there have been no discussions with Russia about extending that deal. He told Reuters: "There is nothing, not even a hint, no official or unofficial talks with Russia we are discussing it with the Americans and the Germans that all of us would like to continue, but the Russians are reluctant to start these discussions." Vitrenko warned that if the deal is not renewed, reliance on the Nord Stream 1 and 2 pipelines direct to Germany would strengthen Russia's grip on Europe's gas supplies. READ MORE: Russia threatens millions as it runs rampant in Irish waters.