MOSCOW: The Kremlin warned on Wednesday that European consumers could face higher energy costs if Ukraine does not agree to extend its gas transit agreement with Russia, which is set to expire on December 31, 2024.
During a routine press briefing, Dmitry Peskov, the Kremlin’s spokesman said that if Kyiv refuses to extend the current agreement, Russia may seek alternative gas transportation routes, such as the proposed Turkish gas hub. He said that such a move would be detrimental to European consumers who rely on a stable and affordable supply of Russian gas.
“There are alternative routes available, but if the Ukrainian side does not extend the deal, it will cause serious damage to the interests of European consumers,” Peskov said. He warned that in such a scenario, European countries would face higher costs for gas, including potentially more expensive liquefied natural gas (LNG) from the United States.
The current gas transit deal, which allows Russian gas to flow through Ukrainian pipelines to Europe, has been a critical component of the energy supply for many European countries. However, Ukraine has consistently stated that it does not plan to renew the deal, citing the ongoing conflict with Russia as a key reason for its reluctance.
Meanwhile, European nations and energy companies have been preparing for the possibility of a disruption in gas flows. The EU, in collaboration with Ukraine, has been exploring other options to mitigate the impact of the potential cessation of Russian gas supplies. This includes discussions with Azerbaijan to facilitate alternative gas supplies and transport arrangements.
In addition to the Turkish gas hub, which is still under development, other possible routes for Russian gas include the TurkStream pipeline, which passes through Bulgaria, Serbia, and Hungary. However, Peskov noted that these routes have limited capacity and may not fully compensate for the loss of transit through Ukraine.
