Ukraine won’t extend Russian gas transit deal – PM

The contract between Moscow and Kiev that brings pipeline gas to the EU expires on December 31

The transit deal that brings piped Russian gas to the EU via Ukraine will not be extended beyond the end of this year, Ukrainian Prime Minister Denis Shmigal has said.

The Ukrainian leadership had repeatedly warned that it has no plans to prolong the deal, which expires on December 31. However, several EU countries continue to rely Russian gas, meaning the termination of the deal poses a risk to consumers.

Shmigal wrote on Monday on Telegram that he held a phone call with his Slovak counterpart, Robert Fico, during which he said that Ukraine was ready to discuss the transit of gas of any origin except Russian.

Slovakia is one of the countries that receives Russian gas transited via Ukraine. The country’s government said it is engaged in “very intense” negotiations over deliveries for next year. Ukraine’s transit network is also connected to the pipeline systems of Moldova, Romania, Poland, and Hungary.

“I stressed that Ukraine’s agreement with Russia on gas transit comes to an end on January 1, 2025, and will not be extended,” Shmigal wrote. He added that if the European Commission officially approaches Kiev about the transit of “any gas other than Russian, we naturally will discuss it and are ready to reach an appropriate agreement.” 

The five-year transit agreement between Russian energy giant Gazprom and Ukrainian state energy firm Naftogaz was signed in 2019. The deal provided for Gazprom to transit 65 billion cubic meters (bcm) of gas through Ukraine in 2020 and 40 bcm annually between 2021 and 2024.

Gazprom, once the EU’s main gas provider, dramatically reduced its exports to the bloc in 2022, following the sabotage of the Nord Stream pipelines. The EU still receives around 5% of its gas from Russia via Ukraine, according to the latest data.

Slovakia reportedly consumed 4.44 bcm of gas in 2023, including 2.9 bcm supplied by Russia.

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Ukraine gas transit talks fraught with ‘pitfalls’ – EU state

Fico said on Sunday that Slovakia will not bow to Western pressure to replace Russian natural gas with a more expensive alternative, noting there’s “no reason to pay more for gas than necessary for geopolitical reasons.” 

The EU declared its intention to end its dependence on Russian energy supplies following the escalation of the Ukraine conflict in 2022. Supplies of higher-cost US fuel have replaced much of the cheap pipeline gas previously delivered by Russia.

On Tuesday, Slovak state-owned energy company SPP and energy operators from Austria, Hungary, and Italy signed a declaration to support the continuation of Russian gas transit, describing it as “the best solution not only for gas consumers in Europe, but also for Ukraine itself.” 

The declaration will be submitted to European Commission President Ursula von der Leyen to inform her about the “threat to energy and economic security in our region,” SPP chief executive Vojtech Ferencz was quoted as saying.