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Gas transit deal and Nord Stream 2 setback
Summary
A look back at two gas stories reported on 21 December 2019 that shaped the outlook for Russian supplies to Europe.
What did the final weekend before Christmas 2019 mean for Russian gas heading to Europe? On 22 December 2019, the picture was shaped by two reports from the previous day.
On 21 December 2019, Russia and Ukraine reached a new five-year agreement on gas transit. The deal set a multi-year framework for the movement of Russian gas across Ukrainian territory.
The same day, a contractor suspended pipe-laying work on Nord Stream 2, the Russian gas pipeline to Europe, because of U.S. sanctions. Nord Stream 2 responded by saying it would finish construction as soon as possible.
Two routes, one day
Taken together, the reports put two routes for Russian gas side by side. One, through Ukraine, gained a five-year agreement. The other, Nord Stream 2, faced a suspension of work and a public pledge from its operator to complete the pipeline quickly.
For Kyiv, the transit agreement set the terms for the next five years. For Nord Stream 2, the open question on 22 December 2019 was how quickly construction could resume after the contractor's halt.
