(MENAFN) Slovakia has been grappling with a significant economic setback as it reveals a staggering loss of more than two-thirds of the income generated from the transit of Russian natural gas. The financial results report, published this month by Slovakia's gas transmission network operator, Eustream, discloses that in the 12 months leading up to July 2023, the country transported 16.97 billion cubic meters (bcm) of Russian gas, resulting in revenue of EUR226.5 million (USD242.8 million).
This stark decline is particularly notable when compared to the period before the Ukraine conflict and subsequent European Union sanctions against Russia. Prior to these events, Slovakia used to transport an average of approximately 60 bcm of Russian gas annually. In the accounting year from August 2019 to July 2020, Eustream transported just under 61 bcm, with revenue totaling EUR748.04 million.
Experts attribute this sharp decline in Russian gas transit volumes to the Ukraine conflict, impacting Slovakia as it receives the commodity from the transit line through Ukraine. The reduction in gas flows occurred after Kiev closed its crucial gas pumping station, Sokhranovka, in May 2022. Although Russian energy giant Gazprom continues to supply gas for transit through the remaining station, Sudzha, the capacity is limited to roughly 40 million cubic meters per day.
With transit flows plummeting to less than one-third of the pre-conflict average and revenues experiencing a more than threefold drop, analysts in Slovakia express concerns about the country's budget losing a crucial source of income. Approximately half of Eustream's revenues, as reported by local outlet Denník Postoj, contribute to the government through income taxes or dividends. The economic implications underscore the challenges faced by Slovakia amid the evolving dynamics of gas transit routes and geopolitical developments in the region.
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