The recent gas transit deal between Russia and Ukraine, and their national gas companies Gazprom and Naftogaz respectively, has comforted Europe just about when the first cold spells started to bite. The 5-year contract is essentially a two-layered construct, with a 65 BCm per year throughput take-or-pay requirement for 2020 and a 40 BCm per year threshold for 2021-2024. Five years is the median of both sides’ wishes, as Gazprom wanted a one-year bridge contract until it brings Nord Stream-2 and Turkstream onstream, whilst Ukraine wanted a 10-year contract that would keep the volumes Gazprom transits at least as high as previously. The end result is acceptable to both, at the same time for all different reasons both sides see it as a non-perfect way to settle the transit issue. The gas deal, concluded a couple of days before Christmas after a negotiations tour encompassing Paris, Berlin and Minsk, […]