EU not to renew agreement with Moscow for gas transit from Ukraine (from which Italy is also supplied)

Brussels – No interest on the part of Brussels in extending the trilateral gas transit agreement with Russia through Ukraine, which expires at the end of this year: This was made clear by the European Energy Commissioner, Kadri Simson, at a hearing today (Feb. 15) in the European Parliament’s Research, Industry, and Energy (ITRE) Committee, assuring that on the basis of the preliminary analyses carried out “there are alternative solutions to supply those countries that still receive part of the gas through Ukraine, looking for an alternative route and using the infrastructure in Kyiv to store and supply gas from Europe using reverse flow,” she explained to MEPs.

Slovakia and Austria are the main importers of Russian gas through the Ukraine transit, but Hungary and Italy also indirectly receive Russian gas from this route. With the pumping from the Russian Nord Stream pipeline on hold, the Ukrainian route is currently the only transit route for Russian gas to the European Union that, through the “REPowerEu” energy plan, has set a political commitment to get rid of Russian fossil fuels by 2027 at the latest; so, there is no interest in extending further the contract with Moscow.

Unlike oil and coal, Russian gas has never been directly affected by European sanctions, but the interruption of the Nord Stream pipeline has led to a decrease in Russian gas supplies. Prior to the start of the war, total EU gas demand amounted to about 400 billion cubic meters per year, of which only about 10 per cent was covered by domestic production, while 150 billion cubic meters of natural gas (both LNG and by pipeline) were imported into the EU from the Kremlin. From 2021, supplies from Moscow were almost halved (to 80 bcm) in 2022 and dropped by a similar proportion (to 43 bcm) in 2023. In essence, according to Brussels data, the EU’s dependence on Russian gas fell from 45 per cent in 2021 to only 15 per cent in 2023. The commissioner took stock of the Continent’s energy security, assuring that the EU’s gas storages are full to 66 per cent of capacity, Russian supplies have dropped below 20 per cent of total imports, and prices have fallen to pre-war levels. “We ended this heating season with a good level of storage, which will make it easier to prepare for the coming winter. In short, we have learned to live without Russian gas, and there is no turning back,” she assured.