The EU is preparing to complete gas transit through Ukraine
16 December 2024 15:03
on December 16, EU energy ministers will meet to discuss key challenges in the energy sector, including high energy prices and the consequences of the end of the transit agreement between Ukraine and Russia, which ensured the supply of Russian gas to Europe. It was reported by "Komersant Ukrainian" reports with reference to Bloomberg.
At the meeting, the European Commission plans to provide an update on member states’ preparations for the winter and possible alternatives to energy supplies.
The event will be the first for the new European Commissioner for Energy, Dane Dan Jorgensen. Ministers will discuss ways to reduce energy prices, strengthen industrial competitiveness and continue the green transformation of the economy.
“Energy affordability remains a pressing issue due to geopolitical instability, supply chain disruptions and dependence on fossil fuel imports,”
– says the document prepared by Hungary, which currently holds the presidency of the EU Council.
The European Commission notes that the completion of the transit agreement between Ukraine and Russia has already been taken into account by European gas markets, and the region is able to find alternative sources of energy supply. At the same time, Slovakia and Hungary are negotiating to maintain gas supplies through exchange mechanisms between Azerbaijan and Russia.
Gas prices in Europe have fallen significantly compared to their peak levels in 2022, thanks to increased imports of liquefied natural gas. However, energy remains expensive, and many households and businesses are feeling financial pressure.
In January, the European Commission will present the Competitiveness Compass initiative aimed at improving energy security and reducing dependence on fossil fuels. And in February, the Clean Industrial Deal strategy is expected to be published, which will contain measures to ensure affordable energy and support industry.
In addition, the EU is preparing a roadmap for a complete phase-out of Russian energy, which still accounts for about 15% of the bloc’s imports.
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Europe and gas
As of the beginning of 2022, the EU was 40% dependent on Russian gas. In 2021, 65% of the gas purchased by Germany was Russian. In the third quarter of 2023, only 12% of the gas imported by the EU remains Russian.
The current contract for gas supplies to Europe through the Ukrainian gas transportation system expires in December 2024. Both sides have made it clear that they are not going to extend it.
At the same time, some EU countries remain dependent on Russian gas, such as Hungary, Slovakia, and Austria. These countries’ contracts with Gazprom provide for gas supplies through the Ukrainian gas transportation system. For example, Austria signed a contract for gas supplies until 2040.
After both Nord Stream and the Ukrainian GTS are out of commission, Russia will be able to supply gas to Europe only through the Turkish Stream.
According to the Center for Research on Energy and Clean Air (CREA), since the beginning of the full-scale Russian invasion, the European Union has bought 210 billion euros worth of energy from Russia.
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