🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

EU sees no need to extend deal on Russian gas transit via Ukraine

Published 15/02/2024, 09:07
NG
-

By Kate Abnett

BRUSSELS (Reuters) - The European Union sees no need to extend an agreement to transport Russian gas to Europe via Ukraine, ahead of the contract's planned expiry at the end of the year, the bloc's energy policy chief said on Thursday.

Energy commissioner Kadri Simson said the EU's analysis indicated that countries served by the gas transit route - which include Austria, Italy and Slovakia - would be able to source alternative supply.

"We have no interest to prolong the trilateral gas transit agreement with Russia, which will expire by the end of this year," Simson told an EU Parliament committee meeting.

"Based on our preliminary analytics, there are alternative solutions to supply these countries who still receive some gas through the Ukrainian route," she said.

Europe is attempting to rid itself of Russian gas imports, after Russia slashed gas deliveries to Europe since its Feb. 2022 invasion of Ukraine.

Europe receives around 12 billion cubic metres (bcm) of gas per year via Ukraine, according to S&P Global Commodity Insights. Russia supplied Europe with 155 bcm of gas per year before the Ukraine war.

Analysts have said an end to the Ukraine transit deal could cause European gas prices to rise slightly, but would not compromise Europe's overall energy security.

EU countries have invested heavily in liquefied natural gas (LNG) and renewable energy to replace supply from Moscow. A sharp drop in gas demand - partly caused by weak industrial activity - has also helped.

© Reuters. FILE PHOTO: A view shows the Orenburg gas processing plant of Gazprom in the Orenburg Region, Russia September 1, 2023. REUTERS/Alexander Manzyuk/File Photo

Under the five-year pipeline transit agreement between Moscow and Kyiv, Russia exports gas to Europe via Ukraine and pays Ukraine for the use of its pipeline network.

Ukraine has said it will not enter into talks with Russia on extending the deal. Kremlin spokesman Dmitry Peskov said last month Russia would find alternative routes to export its gas if the Ukraine deal is not extended.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.