Business news from Ukraine

Business news from Ukraine

European Commissioner for Energy says EU is ready to completely stop transit of Russian gas through Ukraine

11 September , 2024  

European Commissioner for Energy Kadri Simson says the European Union is ready to completely stop the transit of Russian gas through the Ukrainian gas transportation system after the expiration of the current contract in December this year.

“When I spoke with my colleagues in Ukraine, I made it clear that we are preparing for a situation where the transit agreement between Ukraine and Russia will expire by the end of this December. We have found alternative supply routes, and the Member States or their companies that are still receiving gas from Russia have in fact been granted two additional years compared to other companies that Russia has decided to stop supplying to in 2022,” the European Commissioner said at a press conference in Brussels on Wednesday.

At the same time, Simson stated that Ukraine’s gas transportation infrastructure is also part of the EU’s infrastructure, as part of the European gas is stored in Ukraine’s storage facilities, “which provide us with additional capacity.”

“Ukraine is also a gas producer, so we have to make sure that their infrastructure still has value. But my message is very clear: there is no need to look for any new ways to continue trading with Gazprom. Alternative supplies are available, and we are engaging with affected member states to show them that alternative routes will deliver the volumes they need,” she elaborated.

Simson also referred to the words of Ukrainian President Volodymyr Zelenskyy, who said in late August that “Ukraine is not interested in extending the transit contract with Russia, and that European companies have the right to use Ukrainian infrastructure.”

According to the European Commissioner, her “main mission is to encourage companies that are still receiving Russian pipeline gas because they had contracts signed before the war to choose more predictable alternatives.”

Simson also cited figures showing that the share of Russian gas in EU imports fell from 45% in 2021 to 18% by June 2024, while imports from reliable partners such as Norway and the United States increased. In addition, the EU reduced gas demand by 138 billion cubic meters between August 2022 and May 2024.

“The EU reached its 90% winter gas storage target on August 19, 2024, well ahead of the November 1 deadline, and energy prices are more stable and remain well below the peak levels of the 2022 energy crisis,” she elaborated.

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