EU braces for impact as Ukraine halts Russian gas transit
In his New Year's address, Slovak Prime Minister Robert Fico stated that the cessation of Russian gas transit through Ukraine will impact the European Union, not Russia. The company 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 that engages with all global regions while respecting the sovereignty of other nations. He stressed that peace remains Slovakia's highest priority. Concluding his speech, he extended New Year's greetings in multiple 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. The State Gas Company (SPP) issued a similar assurance, emphasising that it had long been preparing for possible interruptions in the supply of Russian raw materials.
The head of SPP, Vojtech Ferencz, informed journalists that the company has contracts for gas supplies from alternative sources, such as BP, ExxonMobil, Shell, ENI, and RWE. He added that Slovakia has pipeline connections with each neighbouring country, allowing flexibility in sourcing materials.
The preferred import routes are the gas pipeline from Germany through Austria or the Czech Republic and the southern route through TurkStream, which leads through Turkey, Bulgaria, Serbia, and Hungary.
Though costly, Ferencz admitted that transporting gas through Poland 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.
European Commission spokesperson Olof Gill stated before the holidays that the Commission and member states have been preparing for over a year for a potential scenario where Russian gas transit through Ukraine ceases as of January 1, 2025. Efforts are focused on securing alternative supplies for the member states affected. The European Commission has also evaluated the impact of halting transit through Ukraine on the EU's energy security, concluding that it would be limited.
On Wednesday, the Russian state gas company Gazprom stated in a press release that "since Ukraine repeatedly and clearly refused to extend agreements, the company had no choice but to turn off the gas tap for transit."
Ukrainian President Volodymyr Zelensky had already announced the halt in transit - the contract expired at the end of 2024, and Ukraine did not want to extend the agreement, explaining that transit gas revenues finance the Russian war in Ukraine. During a December visit to Brussels, Zelensky also stated that "he does not want Russia to continue making billions from the blood of Ukrainian citizens."
The halt in transfer 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%."
Affected countries will have to rely on more expensive liquefied natural gas (LNG).
