Ukrainian gas production facilities damaged in new Russian attack: Naftogaz

Ukraine's state-owned Naftogaz said on March 28 that its gas production facilities were damaged again in another Russian attack -- the eighteenth to target the company's infrastructure since the invasion and the eighth already in 2025.

Russia increasingly turned to targeting Ukrainian upstream gas sites in 2025, having repeatedly attacked gas storage sites and other gas infrastructure since the war began in February 2022.

"The latest shelling is not just an attack on our infrastructure, but an attempt to undermine the country's energy stability," Naftogaz chief Roman Chumak said.

"Restoration will begin immediately to guarantee uninterrupted gas supply," Chumak added.

The latest attack comes despite a pledge from Moscow to halt attacks on energy infrastructure.

The White House said on March 25 that the US and Russia had agreed to develop measures for implementing an agreement to ban strikes against energy facilities in Russia and in Ukraine.

The 30-day ban was first agreed on March 18 after a call between US President Donald Trump and Russian President Vladimir Putin.

Production levels

Russian attacks in January and February against Ukrainian gas production facilities caused "significant" damage, Naftogaz said in late February.

Ukraine has mostly managed to maintain operations at its critical gas infrastructure despite the ongoing war and barrage of missile and drone attacks.

However, with production sites suffering damage and storage levels falling quickly, Ukraine has recently increased its gas imports from Europe to help meet demand despite high prices.

Platts, part of S&P Global Commodity Insights, assessed the benchmark Dutch TTF month-ahead price at Eur41.17/MWh on March 27.

Ukraine's total gas production rose in 2024 to 19.1 Bcm, gas industry association AGPU said in February.

The 19.1 Bcm production volume in 2024 was higher than the 2023 output of 18.7 Bcm, which itself was up from 18.5 Bcm in 2022.

US-Ukraine deal

The latest Russian attacks also come as the US looks to play a greater role in the Ukrainian energy sector.

In a new draft of the US-Ukraine Reconstruction Investment Fund agreement, the US said it would seek the right of first offer to obtain offtake of natural gas and other commodities on commercial terms and in priority to other parties.

The US could also take the right of first offer on investments in projects pertaining to infrastructure and natural resources, including gas pipelines.

In recent weeks there has been intense speculation that a peace deal brokered between the US and Moscow over Ukraine could see the return of larger-scale volumes of Russian gas into Europe.

The easiest way for pipeline gas supplies from Russia into Europe to rise quickly would be via Ukraine.

However, an explosion in late March at the Sudzha gas metering station on the Russia-Ukraine border may complicate a rapid resumption of Russian gas flows to Europe via this route.