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Russian gas delivery to Europe via Ukraine drops 25 percent

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Russian gas supplies to Europe through the Ukrainian territory plummeted by nearly 25 percent in just one day, to a total of 72 million cubic meters on Wednesday, Russian energy giant Gazprom said.

Ukraine has left only one entry point for gas transit to Europe, which has significantly reduced the reliability of gas supplies, Gazprom spokesman Sergei Kupriyanov said.

The Gas Transmission System Operator of Ukraine (GTSOU) announced on Tuesday that it would close the Sokhranivka entry point on the eastern border on Wednesday due to “force majeure” — or unexpected circumstances such as war. Gazprom said it was notified of the Ukrainian decision on Tuesday.

The transmission volume via the Sokhranivka entry point is around 32.6 million cubic meters of gas a day, or a third of the Russian gas which is piped to Europe through Ukraine, GTSOU said.

Gazprom said it was still shipping gas to Europe via Ukraine, but volumes were seen at 72 million cubic meters on Wednesday, down from 95.8 million cubic meters on Tuesday.

Russia remains committed to contractual obligations, Kremlin spokesman Dmitry Peskov told reporters on Wednesday when asked about whether Russia will seek alternative gas transmission routes to Europe.

A German gas operator said volumes of gas entering the German pipeline system via Ukraine had dropped by nearly 25 percent compared with Tuesday as a result of the reduction in gas transit. But it said the decline had been offset by increased inflows of gas from Norway and The Netherlands.

Germany’s Federal Ministry for Economic Cooperation and Development said their natural gas supply security can still be guaranteed at present, and that they will pay close attention to the situation.

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Iran moves to ease export barriers to Afghanistan, Pakistan and Iraq

If implemented, the proposals could help address some of the obstacles facing Iranian exporters trading with neighboring markets, including Afghanistan.

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Iran is reviewing measures to remove barriers to exports to neighboring countries, including Afghanistan, Pakistan and Iraq, as part of efforts to support exporters facing transportation and logistics challenges, a senior Iranian Foreign Ministry official said.

Hamid Ghanbari, Iran’s deputy foreign minister for economic diplomacy, announced the proposals following the 12th meeting of the Economic Relations Coordination Headquarters, which focused on trade diplomacy and non-oil exports.

The meeting, held at the Iranian Foreign Ministry on Saturday, brought together economic deputies from government agencies to discuss exporters’ challenges and coordinate practical solutions.

Ghanbari said disruptions to transportation and logistics had prevented some exporters from fulfilling their obligations. In other cases, exporters who had received foreign currency to import raw materials were unable to complete their purchases because of difficulties along transportation routes.

To address these challenges, Iranian authorities have proposed revising existing procedures and regulations governing exporters’ obligations. Ghanbari said the proposed measures had received approval from relevant government agencies.

Iran Seeks to Facilitate Regional Trade

The Iranian official also highlighted proposals to resolve problems affecting exports to neighboring countries, particularly Afghanistan, Pakistan and Iraq.

He said the proposals could be pursued through negotiations with foreign counterparts, with Iran’s embassies and consulates expected to follow up on the relevant issues.

The initiative comes as Iran seeks to maintain its export flows and strengthen regional trade links despite ongoing economic and logistical challenges.

Ghanbari expressed hope that the measures would help preserve existing export markets, improve the targeting of shipments and support further growth in Iran’s non-oil exports.

However, the specific measures for Afghanistan, Pakistan and Iraq, as well as the timeline for their implementation, have not yet been announced.

If implemented, the proposals could help address some of the obstacles facing Iranian exporters trading with neighboring markets, including Afghanistan.

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Turkmenistan targets 80 billion cubic meters of gas production in 2026

The pipeline is designed to transport natural gas from Turkmenistan through Afghanistan to Pakistan and India, creating a potential source of energy supplies for the region.

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Turkmenistan plans to produce around 80 billion cubic meters of natural gas in 2026, while targeting the start of gas deliveries to Afghanistan through the Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline by mid-2027, according to Turkmen officials.

Maksat Babayev, Turkmenistan’s minister of state and chairman of Turkmengaz, announced the production target at a press conference in Ashgabat on Friday, following the 31st International Conference and Exhibition “Oil and Gas of Turkmenistan” (OGT 2026), Trend News Agency reported.

Officials expect gas production to remain at around 80 billion cubic meters in 2027. Turkmenistan currently supplies approximately 40 billion cubic meters of gas to China and Uzbekistan.

The country also plans to increase oil production to eight million metric tons in 2026, up from 7.5 million metric tons last year.

TAPI Pipeline Deliveries Targeted for 2027

Turkmen officials said construction of the Serhetabat-Herat section of the TAPI pipeline is expected to be completed by the end of 2026, with gas deliveries to Afghanistan scheduled to begin by mid-2027. The timeline will partly depend on the readiness of the Afghan side.

The pipeline is designed to transport natural gas from Turkmenistan through Afghanistan to Pakistan and India, creating a potential source of energy supplies for the region.

Turkmenistan Seeks to Expand Gas Exports

Turkmenistan is also exploring the Trans-Caspian gas supply route and plans to expand production capacity through further development of the Galkynysh gas field.

Meanwhile, seven companies, including firms from Austria, Germany and Türkiye, have submitted bids to develop underground natural gas storage facilities. Officials said the evaluation process is nearing completion.

Turkmen officials also reported a 40% increase in participation at OGT 2026 compared with the previous year, with around 700 international delegates from 75 countries attending the event.

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IMF forecasts 1.3 percent regional economic contraction in 2026

However, it said the region’s economies could recover in 2027 if the conflict eases in early 2027 and regional trade gradually returns to normal.

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The International Monetary Fund (IMF) has projected a 1.3 percent economic contraction across the Middle East, North Africa, Afghanistan and Pakistan in 2026, citing the economic impact of the U.S.-Israeli conflict with Iran.

In its Regional Economic Outlook report released Thursday in Dubai, the United Arab Emirates, the IMF revised its forecast downward by about three percentage points compared with its April projection.

The fund said disruptions to energy production, shipping, trade and tourism caused by the conflict are expected to weigh on regional economic activity.

According to the report, all Gulf Cooperation Council member states, except Oman, are projected to experience economic contractions this year. Bahrain, Kuwait and Qatar are expected to record double-digit declines in economic output.

The IMF warned that the regional economic outlook remains highly uncertain. However, it said the region’s economies could recover in 2027 if the conflict eases in early 2027 and regional trade gradually returns to normal.

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