Ukraine rejects extension of Russian gas transit after 2024
The previous pre-war contract on gas transit from Russia to the EU, mainly to Slovakia, Hungary, and Austria expires at the end of 2024.
Ukrainian authorities are reaffirming their position to refuse the extension of Russian gas transit through Ukraine’s territory after the current agreement expires at the end of 2024. This stance was reiterated by Ukraine’s Prime Minister Denys Shmyhal during the press conference on 10 September 2024.
Prime Minister Denys Shmyhal emphasized at a press conference on Tuesday: “I am confident that there are no official negotiations regarding the extension of Russian gas transit.”
Shmyhal stressed that although the Association Agreement with the EU obliges Ukraine to ensure reliable energy supply to European countries, Ukraine is not willing to cooperate with Russia and does not plan to extend the agreement with them.
This position was previously confirmed by President Volodymyr Zelenskyy on 27 August 2024. “No one will extend the contract with Russia; this matter is closed,” he stated. The President added that Ukraine is ready to consider the possibility of gas transit from other suppliers if there is a corresponding request from European partners.
The statements from Ukrainian officials come amid reports of possible mediation by Azerbaijan in extending Azerbaijani gas transit through Russia and Ukraine. Azerbaijan’s President Ilham Aliyev had earlier announced ongoing negotiations with Russia on this issue, citing requests from Ukrainian authorities and the EU.
However, Ukraine’s Minister of Energy, Herman Halushchenko, denied the existence of concrete proposals from Azerbaijan, although he did not rule out the possibility of such proposals in the future.
Industry experts express skepticism about the idea of Azerbaijani gas transit, seeing it as a potential scheme to continue supplying Russian gas under the guise of Azerbaijani gas.
The current contract for Russian gas transit through Ukraine expires on 31 December 2024. Annually, 12-14 billion cubic meters of Russian gas are transported through the Ukrainian gas transmission system, bringing Gazprom over $5 billion and Ukraine $700-800 million. A loss of Ukrainian transit volumes equates to even higher, $6.5 billion losses on an annual basis for Russia at current prices, Bloomberg calculations show.
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