The EU has stated when it will stop importing gas from Russia for transit through Ukraine

(Dan Tri) – The European Union (EU) announced that it will not extend the contract to buy gas from Russia transited through Ukraine, which is expected to expire at the end of this year.

Russia has been the main gas supplier to Europe for decades (Photo: Reuters).

European Energy Commissioner Kadri Simson said at the EU Parliamentary Committee meeting on February 14 that the EU does not intend to extend the gas transportation contract with Russia transiting through Ukraine when this contract expires at the end of the year.

That means the EU is expected to stop importing gas from Russia transiting through Ukraine by the end of 2024.

Previously, Simson officials met with Ukrainian Energy Minister German Galushchenko on the sidelines of the annual International Energy Agency ministerial meeting in Paris on February 13.

In her talks with Ukrainian officials, Ms. Simson emphasized that EU member states are filling gas storage facilities and working to diversify their energy supplies.

Meanwhile, Minister Galushchenko said that Ukraine `will have a way to cope if the transit contract stops`.

`We have been preparing for the expiration of this contract for 2 years now. Our focus is to diversify supply sources and integrate Ukraine’s energy market into the EU,` he emphasized.

Despite many EU commitments to completely stop importing energy from Russia and many sanctions imposed on the country related to the military conflict in Ukraine, Russian energy corporation Gazprom still sells gas

The pipeline route through Ukraine and the TurkStream branch through Türkiye are the remaining two routes bringing Russian gas to Central and Western Europe.

However, the decision not to extend the current shipping contract will further reduce the EU’s access to pipeline gas and could force the bloc to increase liquefied natural gas (LNG) imports from other sources.

Meanwhile, Ukraine is at risk of losing billions of dollars in revenue from Russian gas transit fees to Europe.

Previously, Guardian said in August 2023 that, despite sharply reducing purchases of gas flowing through Russian pipelines, Europe has continued to increase LNG imports from Moscow in recent times.

Specifically, at that time, the amount of LNG Europe imported from Russia had increased by 40% since Moscow launched a military campaign in Ukraine in February 2022 despite the EU’s efforts to put pressure on revenue sources.

Germany and Belgium, two countries considered the main gateways supplying LNG to the bloc, have become Russia’s second and third largest customers, after China.

European countries have tried to find alternatives to gas flowing through Russian pipelines, but have turned to importing LNG from many sources, including Moscow because LNG is a non-sanctioned commodity.

However, experts from research company Kpler warn that buying LNG will skyrocket Europe’s energy costs.

Unlike gas flowing through pipelines, which is often supplied through long-term contracts, LNG is purchased on the spot market, making it several times more expensive.