Stopping Russian gas transit through Ukraine at the end of this year will lead to alarming consequences for European Union (EU) countries, which are completely dependent on this fuel supply.
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| The agreement to transit gas from Russia to EU countries through pipelines in Ukraine will be 'dead' at the end of this year. (Source: AP) |
At the end of 2019, Moscow and Kiev signed a five-year transit contract, under which Russian corporation Gazprom guaranteed to pump 5 billion m³ of gas in the first year and 65 billion m³ of gas in the next 40 years to countries such as Austria, Slovakia, Italy and Hungary.
The above contract will expire at the end of this year. The Ukrainian side affirmed:will not negotiate with Russia and extend the contract."
Politico commented: "This means that the EU will soon lose about 5% of total gas imports, mainly in Central and South-Eastern Europe. If this loss occurs in the context of a prolonged cold spell, it will be the "worst scenario" for countries that depend on gas transit through Ukraine."
Cessation of supplies through Ukraine will lead to increased gas import costs due to the need to search for alternative routes, while fuel storage costs “will make this multilateralization more complicated and expensive ”.
The newspaper cited an internal EU document warning that there is a risk of higher energy prices this winter and that the Union is meeting with countries to prepare for "worst case scenarios".
Senior analyst at market intelligence firm ICIS Aura Sabadus said that this scenario is creating anxiety across the region, with Austria, Hungary and Slovakia likely to face the effects. biggest.
The European Commission (EC) said it is in "close dialogue" with affected EU countries, but, Politico quoting mAn anonymous Central European official said: “We do have concerns… If the transit route through Ukraine stops, our gas security could be threatened."
