European gas companies warned the European Commission about the risks of stopping gas transit through Ukraine

Slovakia's main gas buyer SPP and groups from Hungary, Austria and Italy warned the European Commission on Tuesday, December 17, about the risks of stopping natural gas transit through Ukraine. This is reported by Euractiv, according to UNN.

Slovakia, which receives gas from Russia through pipelines in Ukraine, is negotiating to ensure that Russian gas supplies do not stop after the transit contract between Kyiv and Moscow expires at the end of the year.

“The declaration we have prepared at SPP is intended to support the continuation of gas transit through Ukraine and the preservation of its gas infrastructure,” SPP CEO Vojtech Ferenc said in a statement.

“This is the most beneficial solution not only for gas consumers in Europe, but also for Ukraine itself,” Ferenc said.

SPP said that its declaration was signed by Slovak pipeline operator Eustream, Hungarian groups MVM and MOL, as well as industry associations from Italy, Austria and Hungary.

The declaration was sent to Commission President Ursula von der Leyen “so that she can learn firsthand about the threat to energy and economic security in our region,” Ferenc said.

On Tuesday, a spokesman for the European Commission said that they had received the groups' statement, but were not negotiating an extension of the transit contract and were not interested in preserving Russian gas transit through Ukraine.

“The Commission does not support any discussions on contract extension or other decisions to preserve transit flows and has not been involved in any negotiations on this issue,” the spokesperson said in an emailed response to questions.

Slovakia said that next year European countries and companies may demand about 15 billion cubic meters of Russian gas through Ukraine.

On Tuesday, Slovak Economy Minister Denisa Sakova held another round of talks with the Russian concern Gazprom.

With fewer route options, the loss of supplies via Ukrainian transit will be a blow to buyers such as Slovakia. In the case of SPP, the company said that the loss of supplies from the east would cost it an additional €150 million due to higher transit fees. The cost for the entire Slovak market would be 220 million euros.

Amid renewed fears over Russian gas supplies, the benchmark Dutch gas supply contract for the first month rose by more than 5% on Tuesday.

Moldovan Deputy Prime Minister Oleg Serebryan told Radio Moldova that he had discussed with Kyiv officials the possibility of Russian gas transit through Ukraine after the expiration of the current agreement, but believes that this issue is closed.

Moldova is discussing with Russian gas giant Gazprom gas supplies, in particular to the separatist region of Transnistria, and proposes to deliver Russian gas through pipelines that pass through Turkey, Bulgaria, and Romania.

No agreement has been reached yet, Euractiv notes 

Addendum Addendum

Ukraine has repeatedly stated that it will not extend the gas transit agreement. Ukrainian Prime Minister Denys Shmyhal confirmed Ukraine's decision not to extend the gas transit agreement with Russia, which expires at the end of this year, and called on European countries to reduce their dependence on Russian gas.

Shmyhal said on Monday that Ukraine is ready to agree to a deal allowing gas to be transited through its territory, provided it is not of Russian origin.