EU considers ways to maintain gas supplies through Russia-Ukraine pipeline

European officials are reportedly considering ways to retain gas supply through the Russia-Ukraine pipeline when the contract with Gazprom expires (which Ukraine has absolutely refused to renew), as this is still critical for numerous countries of the bloc.

Source: Bloomberg, as reported by European Pravda

Details: The contract with Gazprop for transit through the Russia-Ukraine pipeline will expire at the end of 2024. Kyiv has categorically refused to continue the contract. This presents a difficulty for the few EU states, particularly Slovakia and Austria, that continue to receive Russian gas via the pipeline.

According to Bloomberg, European governments and company executives are discussing measures to continue gas deliveries in Ukraine.

One of the reported options is for European corporations to purchase gas from Azerbaijan, which will then be transferred to Europe via Russian pipelines. Ukraine should be interested in this since it earns from transit and wants to ensure that the infrastructure is maintained and operational.

In an interview with Bloomberg, Oleksii Chernyshov, chief executive of the Naftogaz group, dismissed any solution that would need continuous cooperation with Gazprom, but did say that buying petrol from Azerbaijan "might have some future".

The idea of buying gas for Europe in Azerbaijan may conceivably appeal to Russia if it was structured as a swap. Such agreements are occasionally utilised in the oil and gas industry when it is hard to physically transport petroleum from one location to another. As far as we know, Azerbaijan no longer has excess gas output and is already exporting it to Europe via pipelines. Baku is interested in growing exports, but this will necessitate infrastructure renovation and new long-term contracts.

The agency's sources claim that these talks are still "in the early phase" and that the actual movement will begin at the end of the year, when time will begin to run out.

Earlier, there were reports that Slovakia, one of the states that continues to rely on Russian gas, was looking for a replacement in Azerbaijan.

The EU is also planning limitations on Russian liquefied natural gas.

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