Kremlin warns of damaging impact on European consumers if Ukraine ends gas deal with Gazprom
Date
8/29/2024 8:42:21 AM
(MENAFN) On Wednesday, the Kremlin expressed significant concern over Ukraine's decision not to extend its current gas delivery contract with gazprom beyond December 31. Russian officials warned that this move could severely damage the interests of European consumers, who rely on Russian gas transported through Ukrainian territory. Ukrainian President Volodymyr Zelenskyy had declared on Tuesday that there would be no extension of the agreement, signaling the end of the current deal.
Despite the ongoing conflict, Russia managed to deliver just over 14 billion cubic meters of gas to Europe via Ukraine in 2023, falling short of the 40 billion cubic meters outlined in the contract. Countries such as Austria, Hungary, and Slovakia particularly benefited from these supplies. Dmitry Peskov, the Russian presidential spokesperson, argued that if Ukraine follows through with its decision, European consumers will face significantly higher prices, which could negatively affect the competitiveness of their industries. He also highlighted ongoing discussions between Moscow and Turkey to establish a new "gas hub" as an alternative.
The existing contract between Ukrainian companies Naftogaz and GTSOU and Gazprom, signed at the end of 2019, is set to expire on December 31, 2024. In early July, President Zelenskyy indicated that Ukraine was exploring the possibility of replacing Russian gas with supplies from Azerbaijan. However, since Ukraine does not share a border with Azerbaijan, this would require transporting Azerbaijani gas through a pipeline that crosses Russian territory, complicating the logistics of such a transition.
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