Slovakia’s main gas buyer, SPP, and Hungarian, Austrian and Italian groups warned the European Commission on Tuesday of the risks of disrupting natural gas transit through Ukraine, as EU officials stayed away from negotiations aimed at maintaining the flow of Russian gas.
Slovakia, which receives gas from Russia via pipelines in Ukraine, has started talks to try to prevent Russian gas flows from stopping when the transit contract between kyiv and Moscow expires at the end of the ‘year.
Ukraine, engaged in a 33-month war with Russia, has repeatedly said it will not extend the gas transit deal.
Prime Minister Denys Shmyhal said on Monday that Ukraine was ready to accept a deal allowing gas to pass through its territory, provided it was not of Russian origin.
“The statement that we have prepared in the SPP aims to support the continued transit of gas through the territory of Ukraine and the preservation of its gas infrastructure,” Vojtech Ferencz, general director of the SPP, said in a statement.
“This is the most beneficial solution not only for gas consumers in Europe, but also for Ukraine itself,” added Ferencz.
SPP said its statement was signed by Slovak gas pipeline operator Eustream, Hungarian groups MVM and MOL, as well as industry associations from Italy, Austria and Hungary.
The statement was sent to Commission President Ursula von der Leyen “so that she has first-hand information about the threat to our region’s energy and economic security”, Ferencz said .
A spokesperson said Tuesday that the Commission had received the groups’ statement, but was not in talks to extend the transit contract and had no interest in maintaining Russian gas transit through Ukraine.
“The Commission does not support any discussions on contract extension or other solutions to maintain transit flows and has not been involved in negotiations on this subject, the spokesperson said in emailed responses to questions.
Slovakia said European countries and companies had a combined demand for around 15 billion cubic meters of Russian gas next year via Ukraine.
Slovak Economy Minister Denisa Sakova held a new round of talks on Tuesday with the Russian group Gazprom.
With fewer shipping options, the loss of supply via Ukrainian transit would be a major blow to buyers like Slovakia.
In SPP’s case, the company said the loss of supplies from the East would cost it an additional 150 million euros ($157 million) due to increased transit costs. The cost for the entire Slovak market would reach 220 million euros.
Amid renewed concerns over Russian gas supplies, the benchmark Dutch short-term gas contract rose more than 5% on Tuesday.
Moldovan Deputy Prime Minister Oleg Serebrian told Radio Moldova that he had discussed with kyiv officials how Russian gas could flow through Ukraine after the existing agreement expires, but that he considered the matter closed.
Moldova has spoken with Russian gas giant Gazprom about gas supplies, particularly for its breakaway region of Transnistria, and has suggested that Russian gas be delivered through lines through Turkey, Bulgaria and Romania.
No agreement has yet been reached.
Russian gas is essential for residents of Transnistria and to power a thermal power plant that provides most of the electricity to government-controlled regions of Moldova.
However, Serebrian rejected a call from pro-Russian Transnistrian leaders to make a joint appeal to Moscow over gas supplies.
“What would a joint declaration (from Moldova and Transnistria) mean,” he asked. “Would it mean recognition of two centers of power in Moldova? Recognition of their so-called authority? This is the subtext of such a proposal.”
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