How do Ukraine's actions in the Kursk region affect Europe?

By Kerim Sultanov

The Ukrainian army has taken an unprecedented step by entering Russia's Kursk region and seizing strategically important positions there. This unexpected move has raised many questions about the reasons behind the attack and the possible objectives of the Ukrainian side. What lies behind this offensive, and what are its future prospects? Ukrainian analyst Ivan Us provided answers to these and other questions in an interview with News.Az .
According to him, one of the events occurring in Russia's Kursk region is the seizure of a gas distribution station near the village of Sudzha by unidentified forces.

"Ukraine has not officially claimed responsibility for these actions, which raises suspicions that these could be pro-Ukrainian formations. However, it is currently impossible to determine exactly which unit was involved in these actions, so caution should be exercised in statements. One thing is clear: these forces have some connection to Ukraine.

The gas distribution station in Sudzha plays a crucial role in the region's gas supply system. Its primary function was to allow Russia to control the volumes of natural gas entering Ukraine's gas transportation system. These figures were then cross-checked with the data obtained at the exit from Ukraine and upon entry into the European Union. The question arises: how reliably can this gas transportation system now function, given that the contract for the transit of gas through the southern branch of the 'Druzhba' pipeline from Russia to Europe is in effect until the end of 2024," Us noted.

Naturally, this situation immediately impacted the market, the analyst said. "Natural gas prices in Europe began to rise. On August 6, the price per megawatt-hour was 34 euros, but it has now reached 40 euros. This is a significant increase, although it does not yet appear dramatic. Compared to the figures at the end of 2023, the rise is about 9%, which is undoubtedly significant and is actively discussed in the press.

This week began with sharp fluctuations in global stock markets. In particular, a 12% drop was recorded in the Japanese stock market, along with significant declines in indices in Istanbul, Taiwan, South Korea, the EU, and the US. However, by Tuesday, some indicators began to recover.

As for gas supplies, at the moment, despite the hostilities, the transit of Russian gas to Europe through Ukrainian territory continues. If Ukraine's partners have doubts, we have data confirming that the supply volumes have not changed. Nevertheless, the situation remains dynamic, and as we approach August 10, it is difficult to predict what changes may occur over the weekend and what new realities we will face next week," Us stated.

News.Az