Central European energy firms push for extension on Russian-Ukrainian gas transit deal

Pic.: Qatar-Gulfnews

The companies’ plea to the EU comes as the region faces a gas supply cutoff from Moscow via Ukraine later this month, POLITICO informs.

Top Central European energy firms have written to EU chief Ursula von der Leyen to try to extend a transit deal carrying Russian gas across Ukraine, marking the latest push from the region to ensure continued supplies from Moscow.

In a letter sent to the European Commission president, gas supply firms, network operators and industrial consumers from Hungary, Slovakia, Austria and Italy said the end of the deal could “complicate the supply of gas” and “result in higher gas prices for European consumers.”

Slovakia and Hungary — headed by the Russia-friendly Robert Fico and Viktor Orbán — have for months sought to renew the deal, signed between Kyiv and Moscow in 2019, which allows the passage of gas via Ukraine to Europe. The two nations argue the end of the deal threatens their security of supply and could hike energy prices in the depths of winter.

SPP, Slovakia's state-owned energy supplier, which signed the letter, warned the cutoff would cost the country “more than 220 million euros” to replace the lost supplies in a statement Tuesday. The letter was also signed by the Federation of Austrian Industries lobby and Gas Intensive Società Consortile, a body representing gas-intensive firms in Italy.

Slovakia’s Economy Minister Denisa Sakova said the country intended to secure a deal on the pact by year’s end but that this “depends on [the country’s] partners.” Fico spoke by phone to his counterpart Denys Shmyhal about the deal, after saying over the weekend that officials were in “very intense” talks on the agreement.

Following the call, Shmyhal said he would discuss options to extend the pact as long as they did not include flows continuing from Russia and if the Commission “officially address[ed]” the issue with Kyiv.

Hungarian Energy Minister Csaba Lantos told reporters before a regular meeting of the bloc’s ministers in Brussels that it would “of course” be helpful for the Commission to step in and support these efforts.

Still, the EU executive has repeatedly said the bloc will not face serious consequences if the gas flows stop and has ruled out helping negotiate an extension.

…Europe didn't want to get Russian gas? But real life is more complicated than "I want to or I don't want to." Economics dictates its own rules and sooner or later takes over politics.  That’s what we witness nowadays. Who will be the next?

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