(MENAFN) Ukrainian Energy Minister German Galushchenko announced on Sunday that Ukraine does not intend to extend the gas transit agreement with Russia to the European Union beyond its current expiration date later this year. The five-year contract, brokered by the European Union and signed in 2019, stipulates the transit of 65 billion cubic meters (bcm) of gas through Ukraine in 2020, followed by 40 bcm annually from 2021 to 2024.
Galushchenko affirmed that Ukraine has no plans to enter into additional agreements or extend the existing agreement, emphasizing the successful completion of a stress test that demonstrated Ukraine's ability to operate its gas system independently without relying on transit. He highlighted Ukraine's efforts to bolster its energy security and independence by ramping up domestic gas production.
The decision not to renew the gas transit deal would effectively close one of the last remaining routes for Russian gas to reach the European Union, resulting in the loss of billions of dollars in transit fees for Ukraine. Historically, the European Union relied heavily on Russian gas transported through Ukraine's pipeline network. However, disruptions caused by sanctions against Moscow and incidents like the sabotage of the Nord Stream pipeline led to a significant decrease in gas supplies and prompted frantic stockpiling within the European Union in 2022.
European Union Energy Commissioner Kadri Simson previously stated in February that the bloc has no interest in prolonging the trilateral gas transit agreement with Russia. This decision aligns with the European Union's broader objective to phase out energy imports from Russia entirely by 2027.
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