Espreso. Global

Ukraine's PM Shmyhal names condition for continuation of Russian gas transit

4 March, 2024 Monday
16:30

Prime Minister Denys Shmyhal says that Ukraine is ready to continue the transit of Russian gas through its gas transportation system at the initiative of the European Union. However, it won't extend or sign a new contract with Russia's Gazprom

He said this at a press conference, Interfax-Ukraine reports.

Shmyhal emphasized that Ukraine is ready to continue transit if one of the European partners acts as a transit country for its own gas.

"We certainly do not plan to negotiate with the aggressor country to extend (the transit contract) and sign the agreement, but we have had numerous talks with European leaders on the basis of the European Commission. If European countries act either as a consortium or if one of the European partners acts as a transit country for their own gas, we are ready to provide such a service. The initiative here is on the side of the EU and our European partners," he said.

The Prime Minister noted that it could be the European Commission, a group of European countries or their association that are interested in preserving transit.

At the same time, Ukraine's gas transportation system is ready to function without Russian gas transit.

What is known about Russian gas in Europe

In December 2019, a contract was signed for the transit of Russian gas through Ukraine until 2024. Under this contract, Gazprom committed to supplying at least 65 billion cubic meters of gas in 2020 and 40 billion cubic meters of gas annually from 2021 to 2024 through the Ukrainian gas transportation system. This would give Ukraine $7 billion in transit revenues.

On the eve of the winter of 2022, Russia began blackmailing Europe with gas. The EU found alternative supply routes and survived the winter. In early 2023, Russian gas transit through Ukraine dropped: a 16% decline attributed to mild weather in Europe and the availability of alternative sources.

In the first quarter of 2023, Russia's oil and gas revenues fell by 45%, primarily as a result of the G7 sanctions on oil and oil products from Russia.

On April 14, 2023, Lithuanian Energy Minister Dainius Kreivys said that the Baltic states would look for a solution to stop imports of liquefied petroleum gas from Russia to the Baltic states, which more than doubled in 2022.

On August 8, it was reported that the European Union managed to reduce Russian gas supplies via pipelines from 50% to 8% within a year of the full-scale invasion.

On August 16, Ukrainian Energy Minister Herman Halushchenko said that after the expiration of the gas transit contract with Russia, Ukraine would not negotiate its extension.

On September 14, European Commissioner for Energy Kadri Simson called for a reduction in the export of Russian liquefied natural gas (LNG), up to a complete abandonment of it.

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