European leaders are pushing for renewed discussions between the European Union, Ukraine, and Russian authorities regarding the potential resumption of gas transit through Ukraine. Slovakia’s Prime Minister, Robert Fico, has expressed openness to the idea, despite the expiration of a five-year gas transit deal between Moscow and Kyiv. Fico has emphasized the need for a revival of the gas flow, citing the rising energy costs affecting Slovakia and the broader European region.
Speaking at an extraordinary summit in Brussels on Thursday, Fico reiterated his stance that the pipeline running through Slovakia, with a capacity of 100 billion cubic meters, should be utilized moving forward. “I want to do everything to ensure it is used in the future,” he told reporters.
Last year, Russia indicated its willingness to engage in a new gas deal with Ukraine. In November, Russian Deputy Prime Minister Alexander Novak confirmed that Russia would be open to continuing gas supplies to Europe via Ukraine, provided Kyiv and the involved European countries could reach an agreement. “European countries that receive gas through this corridor are interested in continuing such cooperation,” Novak stated, adding that the final decision depends largely on negotiations between the countries involved.
Ukraine faces a significant loss of up to $1 billion annually in transit fees following the deal’s expiration. In response, the country plans to offset the shortfall by significantly increasing domestic gas transmission tariffs. At the same time, Russian energy giant Gazprom stands to lose nearly $5 billion in gas sales, with Ukrainian gas constituting about 5% of total EU gas imports.
Meanwhile, European natural gas futures saw a rebound on Thursday, rising to €41.5/MWh after two days of losses. The surge is attributed to forecasts predicting colder-than-usual weather, which is expected to increase heating demand. This shift is likely to deplete gas storage levels further before the end of the heating season. EU gas storage is currently at 37.3% capacity, having declined more rapidly than anticipated this winter due to both colder weather and reduced wind power generation.