Russia-Ukraine gas halt tests EU resilience
The halt of Russian gas transit through Ukraine will impact the European Union, not Russia, stated Slovak Prime Minister Robert Fico in his New Year's address. The company responsible for overseeing gas flow through Slovakia confirmed the suspension of raw material supplies.
The Slovak Prime Minister reiterated that Kyiv's decision to halt the transit of Russian gas through Ukraine could cost Slovakia hundreds of millions of euros. According to Fico, this move will also increase the cost of importing gas from Russia.
Fico highlighted his commitment to maintaining a balanced foreign policy with a global perspective while emphasizing Slovakia's non-interference stance in other nations' domestic matters. He underscored that peace remains Slovakia's highest priority. Concluding his speech, Fico extended New Year's greetings in several languages, including Swedish, Spanish, English, and Russian.
Russia does not send gas through Ukraine. Slovakia loses
The company Eustream, which oversees gas transits on Slovakian territory, assured in a statement on Wednesday that it is ready to secure supplies for all recipients. A similar assurance was issued by the State Gas Company (SPP), which emphasized that it had been preparing for possible interruptions in the supply of Russian raw materials for a long time.
The head of SPP, Vojtech Ferencz, informed journalists that the company has contracts for gas supplies from alternative sources, such as BP, Exxon Mobil, Shell, ENI, and RWE. He added that Slovakia has pipeline connections with each neighboring country, allowing for flexibility in sourcing materials.
The preferred import route is the gas pipeline from Germany through Austria or the Czech Republic, as well as the southern route through TurkStream, which leads through Turkey, Bulgaria, Serbia, and Hungary.
Ferencz admitted that transporting gas through Poland, although costly, remains a backup option.
The EU has prepared for the suspension of Russian gas transit
The European Commission assured that the European gas infrastructure is sufficiently flexible to supply non-Russian-origin gas to Central and Eastern Europe through alternative routes. Additionally, this infrastructure has been strengthened due to a significant increase in LNG import capacity since 2022.
The European Commission, working alongside member states, has been preparing for over a year to address the potential cessation of Russian gas transit through Ukraine as of January 1, 2025. This includes efforts to secure alternative supply routes for affected member states. According to spokesperson Olof Gill, the Commission considers the impact of this development on the EU's energy supply security to be minimal.
On Wednesday, the Russian state-owned gas company Gazprom announced in a press release that, due to Ukraine's consistent and clear refusal to extend the agreements, it was compelled to halt gas transit.
Ukrainian President Volodymyr Zelensky previously confirmed the decision to end gas transit, as the contract expires at the end of 2024. Ukraine opted not to renew the agreement, citing concerns that transit revenues were being used to fund Russia's war efforts against the country. During a December visit to Brussels, Zelensky emphasized his stance against Russia profiting financially at the expense of Ukrainian lives.
The halt in transit will affect several European countries, with Slovakia being one of the first. Prime Minister Robert Fico recently met with Russian President Vladimir Putin on this issue. On Tuesday, Slovakia stated that it is prepared and its gas storage facilities are "filled to 100 percent."
Affected countries will have to rely on more expensive liquefied natural gas (LNG).
