Opinion: Why is the West subsidizing Russia?

All of Ukraine’s import requirements could be met if supply flows were reversed and more gas was piped from west to east. The technical means to do this exist. Pipelines between Slovakia and Ukraine have the capacity to carry 100 billion cubic meters of gas annually in either direction, more than twice Ukraine’s total consumption last year.

The problem is that Russia’s Gazprom (GZPFY) has reserved 80% of that capacity even though it is only currently using 50%-55% to supply gas to the EU. The remainder is sitting idle in defiance of new EU anti-monopoly rules that are supposed to force pipeline operators to make spare capacity available to alternative suppliers.

David Clark is chair of the Russia Foundation and a senior research associate at the Foreign Policy Centre. The opinions expressed in this commentary are solely his.

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