EU gears up for halt of Russian gas transit through Ukraine — Kadri Simson
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The European Union is taking proactive measures in anticipation of the cessation of Russian gas transit through Ukraine, set to occur in a year, Kadri Simson, the EU Commissioner for Energy said on Dec. 20.
Simson, addressing reporters in Brussels after the Energy Ministers’ Council of the EU, urged member countries still dependent on Russian gas to brace for market changes and commence reductions in consumption volumes.
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“I informed the ministers and provided them with a clear picture of gas supply routes when the transit of Russian gas through Ukraine ends,” said Simson, quoted by news agency Ukrinform. “This will happen exactly in a year... there is still quite a long time to prepare for what will happen.”
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Simson acknowledged the challenges faced by EU countries but emphasized progress in diversifying energy supplies and reducing reliance on Russian imports. She projected that the total volume of Russian gas imports in 2023 would be approximately 40 billion cubic meters, a significant drop from the 80 billion cubic meters imported last year.
The EU Commissioner highlighted the European Commission’s vigilant monitoring of the import of Russian liquefied gas. A regulatory package, based on technical proposals was adopted, enabling member countries to limit imports of both pipeline and liquefied gas from Russia into their gas networks, ensuring a targeted reduction in Russian gas imports.
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“While the current market situation is somewhat healthier, new geopolitical circumstances bring numerous risks, so we must continue to be prepared for crises and extend the preventive measures presented last year,” Simson said.
The proposed extension includes three regulatory rules, focusing on solidarity among member countries, renewable resource development, and the market correction mechanism, which helped stabilize gas prices in a vulnerable market.
Earlier reports indicated that the agreement on the transit of Russian gas to Europe was signed by Ukraine and Gazprom at the end of 2019. It is valid until Dec. 31, 2024, under the “use it or pay” formula. Gazprom is obliged to pay for the transportation through the Ukrainian GTS not less than 40 billion cubic meters in the years 2021-2024, regardless of the actual volumes of gas delivered.
According to the report by the Center on Global Energy Policy, even if some deliveries continue after 2024, it is unlikely that the existing transit agreement will be extended on similar terms due to the lack of political support.
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