EU prepares for winter without Russian gas transit through Ukraine – Bloomberg

EU energy ministers will meet on 16 December to discuss the future of the energy sector, focusing on concerns over energy prices and the expiration of the transit agreement between Ukraine and Russia, which has been key to Russian gas supplies to Europe.

Source: Bloomberg 

During the meeting, the European Commission plans to update member states on preparations for the winter and alternative energy supply sources. 

The meeting will mark the first for the new EU Energy Commissioner, Danish politician Dan Jørgensen. Ministers are expected to discuss options for reducing energy prices, strengthening industrial competitiveness, and continuing the green transition. 

"Energy affordability remains a pressing concern, with volatile prices driven by geopolitical tensions, supply chain disruptions, and reliance on fossil fuel imports," states a document prepared by Hungary, which currently holds the EU Council presidency.

The European Commission said that the end of the agreement between Kyiv and Moscow has already been factored into European gas markets, and the region is expected to find alternative supply sources. Meanwhile, gas buyers in Slovakia and Hungary are negotiating to maintain supplies through exchange mechanisms between Azerbaijan and Russia.

Gas prices in Europe have significantly decreased compared to the peak levels of 2022, largely due to an increase in liquefied natural gas (LNG) imports. However, prices remain high, and many households and businesses continue to face financial strain from expensive energy resources.

In January, the European Commission plans to introduce a new initiative called Competitiveness Compass, aimed at strengthening energy security and reducing dependence on fossil fuels. In February, a Clean Industrial Deal strategy will be proposed, which will include a detailed plan for ensuring affordable energy and supporting industry.

The EU will also prepare a roadmap for the complete phase-out of Russian energy supplies, which still account for about 15% of the bloc's imports. 

Background:

• Russia's gas monopoly, Gazprom, has included in its internal plans for 2025 the assumption that gas transit to Europe through Ukraine will cease after 31 December 2024. 
• Slovakia will hold a series of negotiations to ensure the continued supply of Russian gas after the expiration of the current transit contract through Ukraine.

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