Europe eyes Azerbaijan gas to replace Russian supply through Ukraine
According to Bloomberg, European countries are in talks with Kyiv about maintaining transit through Ukraine by replacing Russian gas with gas from Azerbaijan.
8:58 AM EDT, June 11, 2024
Representatives of European countries and gas companies are negotiating with Ukrainian partners to maintain gas transit through Ukraine after the contract expires at the end of 2024.
The contract for the transit of Russian gas through Ukraine to Europe expires at the end of 2024, and Kyiv does not plan to extend it with Gazprom. According to Bloomberg's sources, a possible option is for European companies to purchase gas from Azerbaijan and inject it into the Russian pipelines leading to Europe.
Oleksiy Chernyshov, CEO of the Ukrainian state company Naftogaz, ruled out cooperation with Russian Gazprom but emphasized that Ukraine has an "has incredible infrastructure of transit and storage gas, which should be used."
Bloomberg lists Slovakia as a key country that could benefit from this option, noting that its Prime Minister Robert Fico mentioned such a possibility in May after a trip to Azerbaijan.
According to him, if the negotiations are successful, Slovakia can import gas from Azerbaijan, keeping some for itself and sending the rest to other countries.
The fate of the gas depends on the war in Ukraine
Negotiations are early, and a resolution can be expected by the end of 2024. Events on the battlefield may also significantly influence decision-making.
In 2019, a five-year contract was signed to transit Russian gas through Ukraine to Europe. Russia still delivers large amounts of gas to Europe (approximately 529 billion cubic feet per year), with Slovakia and Austria as the primary recipients.
