Slovakia faces economic hit as Ukraine halts Russian gas transit
In his New Year's address, Slovak Prime Minister Robert Fico stated that the halt of Russian gas transit through Ukraine would impact the European Union, not Russia. The company responsible for overseeing gas flow through Slovakia confirmed the suspension of raw material supplies.
The Slovak Prime Minister reiterated that Kyiv's decision to halt the transit of Russian gas through Ukraine could cost Slovakia hundreds of millions of euros. According to Fico, this move will also increase the cost of importing gas from Russia.
Fico expressed his commitment to pursuing a balanced foreign policy with a global focus. He emphasized that Slovakia respects the sovereignty of other nations by refraining from involvement in their internal matters. Highlighting peace as Slovakia's highest priority, he concluded his address by offering New Year's greetings in multiple languages, such as Swedish, Spanish, English, and Russian.
Russia does not send gas through Ukraine. Slovakia loses
The company Eustream, which oversees gas transits across Slovakian territory, assured in a statement on Wednesday that it is ready to secure supplies for all recipients. The State Gas Company (SPP) issued a similar assurance, stating that it had long been preparing for potential disruptions in the supply of Russian raw materials.
The head of SPP, Vojtech Ferencz, informed journalists that the company has contracts for gas supplies from alternative sources, such as BP, ExxonMobil, Shell, ENI, and RWE. He added that Slovakia has pipeline connections with each neighbouring country, allowing for flexibility in sourcing materials.
The preferred import routes are the gas pipeline from Germany through Austria or the Czech Republic and the southern route through TurkStream, which passes through Turkey, Bulgaria, Serbia, and Hungary.
Though costly, Ferencz admitted that transporting gas through Poland remains a backup option.
The EU has prepared for the suspension of Russian gas transit
The European Commission assured that the European gas infrastructure is sufficiently flexible to supply non-Russian-origin gas to Central and Eastern Europe through alternative routes. Additionally, this infrastructure has been strengthened due to a significant increase in LNG import capacity since 2022.
For over a year, the European Commission and member states have prepared for a scenario in which Russian gas transit through Ukraine ceases as of January 1, 2025. Efforts have focused on securing alternative supplies for impacted member states. According to spokesperson Olof Gill, the Commission considers the potential impact of halting transit through Ukraine on the EU's energy security to be minimal.
On Wednesday, the Russian state-owned gas company Gazprom announced in a press release that, due to Ukraine's clear and repeated refusal to renew agreements, it had no option but to halt gas transit.
Ukrainian President Volodymyr Zelensky previously declared that gas transit through Ukraine would cease as the contract was set to expire at the end of 2024, and the country chose not to renew it. The decision was justified by the claim that revenues from gas transit were being used to support Russia's war efforts against Ukraine. During a visit to Brussels in December, Zelensky emphasized his opposition to Russia profiting financially at the expense of Ukrainian lives.
The halt in transfer will affect several European countries, with Slovakia being one of the first. Prime Minister Robert Fico recently met with Russian President Vladimir Putin on this issue. On Tuesday, Slovakia stated that it is prepared and its gas storage facilities are "filled to 100 percent."
Affected countries will have to rely on more expensive liquefied natural gas (LNG).
