Page 197 - RusRPTAug24

At the same time, President Zelenskiy said that our country has no desire to extend the gas contract with Russia because it does not want the aggressor to earn money in Ukraine. "Alternative steps are now being considered as to how we can use the pipeline. Negotiations are ongoing," he said. One of the options is replacing Russian gas with Azerbaijani gas. Europe's completion of the transit agreement raises contradicting issues. On the one hand, this is a chance to reduce dependence on Russian gas; on the other hand, some EU countries favor continued supplies. For example, Austria received more than 80% of its gas from Russia in the spring. Hungary, Slovakia, and Czechia also heavily depend on Russian gas.
The European Union is considering renewing its gas supply contract with Gazprom after the agreement on the transit of fuel via Ukraine expires at the end of this year, the Handelsblatt newspaper wrote.
Austria, Hungary, Slovakia and the Czech Republic are wary of the agreement between Gazprom and Naftogaz on transit of Russian gas to Europe via Ukraine expiring on December 31, according to the publication. Due to this the EU is currently negotiating the possibility of extending gas supplies from Russia or boosting gas deliveries from other countries, the paper said.
One potential option is that a new contract be concluded between Gazprom Export and a European energy enterprise that will purchase gas on the Russian-Ukrainian border, direct it to the EU and pay for transit to the Gas Transmission System Operator of Ukraine (GTSOU), Handelsblatt wrote. Meanwhile the paper mentioned the Austrian company OMV, which has an operating contract with Gazprom on gas supply until 2040, as a possible candidate from the European side. However, it may only be valid upon Ukraine’s consent for transit that Kyiv cannot provide. OMV declined to name any companies that could participate in the new mechanism of gas supplies from Russia and recommended that journalists contact "respective bodies."
The second option suggests boosting gas supplies from Azerbaijan through the Trans-Anatolian Pipeline (TANAP), according to Handelsblatt. However, this route is already loaded, the publication said, adding that Baku is unable to pump more fuel via it. This is why European countries would have to negotiate deliveries of Azerbaijan’s gas through Ukraine, which in turn would again mean Russia’s involvement in the fuel supply scheme.
In December 2019, Gazprom and Naftogaz reached an agreement to extend transit of Russian gas through Ukrainian territory for 2020-2024 with the possibility of its extension. The contract stipulates transit of 65bn cubic meters of gas in 2020 and 40bn cubic meters annually from 2021 to 2024. The agreement suggests the ‘take or pay’ principle, which means payment for transit is made in the amount of booked capacities even if the actual pumping turns out lower.
197 RUSSIA Country Report August 2024 www.intellinews.com