Ukraine denies it is willing to extend Russian gas transit contract

Ukraine has denied that it is ready to discuss extending the key contract for the transit of Russian gas through its territory, which expires at the end of this year. Bloomberg reported this today. Slovak Prime Minister Robert Fico said on Wednesday, after meeting his Ukrainian counterpart Denys Shmyhal, that gas transit through Ukraine to Europe could continue.

„The Ukrainian side’s position is clear: the transit contract will expire at the end of this year,“ Shmyhal’s press office told Bloomberg.

„We will not negotiate with the Russians and will not extend the contract,“ it added.

Under the current agreement, Russia continues to supply gas to the European Union. According to analysts at consultancy Energy Aspects, even without an extension of the contract, Russian gas company Gazprom could supply gas to EU buyers through short-term bookings of transit capacity in Ukraine.

Fico said on Wednesday that the transit of Russian gas through Ukraine was one of the topics discussed at his meeting with Shmyhal. „An agreement was reached that Russian gas transit through Ukraine will probably continue, which is excellent news,“ the Slovak prime minister said. „That means we in Slovakia will also be able to continue transporting this gas, which will benefit not only our companies, but Austria and Italy as well,“ he added.

The European Union has imposed extensive economic sanctions on Russia in response to its attack on Ukraine. Although the EU has not banned imports of Russian gas, it is seeking to end its dependence on energy supplies from Russia. The decline in Russian gas supplies to the EU is being offset, among other things, by imports of liquefied natural gas (LNG).

Last year, most of the gas flowing to the Czech Republic came through Germany from Norway and from LNG terminals on the North Sea coast, in Belgium, the Netherlands and Germany. Since October, Russian gas purchased on the Slovak or Austrian market has also flowed into the Czech Republic, ultimately accounting for about seven percent of total annual domestic consumption.