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Is it important that kyiv not extend the agreement? – EADaily, October 7, 2024 – Politics News, Russian News

The Ukrainian authorities have personally informed Slovak leaders for the second time that they will not renew the agreement with Gazprom, which expires in less than three months. Whether this statement has any meaning is unknown, since the continuation of the actual transportation of Russian goods through Ukraine has long been discussed within the framework of other schemes.

The kyiv regime will not renew the gas transit agreement with Gazprom, which expires at the end of 2024. This was stated by the Prime Minister of Ukraine. Denis Shmygal after a meeting with the Prime Minister of Slovakia Roberto Fico in Uzhhorod.

“We understand the marked dependence of some states, in particular Slovakia, on this resource. But we have a gradual diversification of the offer.” – said the head of the Ukrainian government on the Telegram channel.

Ukraine’s strategic objective is to impose sanctions on the Russian gas molecule and rid the Kremlin of revenues from the sale of hydrocarbons, said Denis Shmygal.

Previously, the Ukrainian Prime Minister had already personally said something similar to the head of the Slovak Prime Minister, during a previous meeting in Uzhgorod.

At the same time, it is unknown whether Denis Shmygal’s statement has any meaning. It has been known for a long time that there will be no contract extension. A completely different plan to expand transit was discussed, in which European companies or the Azerbaijani company Socar would act as intermediaries and take gas from the Russian-Ukrainian border.

“No one will renew the agreement with Russia, that’s all. Regarding the transit of gas from other companies, if the request of some of our European colleagues continues, and we are all in the European Union, we will consider their request.” —he said in August Vladimir Zelensky.

The president of Azerbaijan confirmed that negotiations are ongoing Ilham Aliyev.

“We think there is room for a breakthrough, but it’s probably too early to go into details.” he said during a visit to Italy in September.

“In the case of gas transportation, the question is being discussed whether a consortium of European traders or the Azerbaijani state company Socar will deliver raw materials to the Russian-Ukrainian border. At the border between Ukraine and Slovakia, they can transfer gas back to Gazprom and the Russian company will continue to serve European customers. This possibility was the subject of negotiations between representatives of the Slovak government this year in Baku, Azerbaijan, in which the head of the SPP also participated,” Slovak Energoklub wrote last week, quoting the general director of Slovak Slovenský plynárenský priemysel (SPP). Vojtech Ferenc.

Deputy Director of the National Energy Security Fund (NESF) Alexey Grivach He considers that little depends on Ukraine when it comes to gas transit.

“There are behind-the-scenes negotiations in the EU and in the Atlantic bloc on a wide range of issues, including transit and energy supplies to Ukraine in the context of a power generation shortage.” – believes the expert.

Chief strategist of the investment company “Vector X” Maxim Judalov I am sure there will be no direct agreement.

“There will be a full copy of the agreement on the transit of oil through the territory of Ukraine (when a European company seizes raw materials across the border). In reality, Shmygal’s statement is an invitation to European companies to an auction for the right to transport Russian gas along the demarcation line and make money on its transportation and supply to the EU. Of course, the winner will have to share transit payments with the Ukrainian budget. In reality, these are the issues that Europeans have to discuss now.” – notes Maxim Khudalov.

Last year, about 15 billion cubic meters of Russian gas were supplied through Ukraine. Austria, Slovakia, the Czech Republic and Italy received it. For the first two countries, this represents more than 50% of consumption. Austria and Slovakia do not rule out that transit will cease on January 1, 2025. In Europe itself there are many opponents of the expansion of transit, including the Minister of Energy of Austria and the leaders of the Czech Republic. Minister of Industry and Commerce of the country. Joseph Sikela wrote a letter to the European Commission demanding that talks on the transit of Azerbaijani gas through Russia and Ukraine do not lead to the transportation of Russian gas, which is only different according to the documents.

Meanwhile, gas companies in Europe say there will be alternative gas, but it will be more expensive.

“We have diversification contracts with well-known companies, we have obtained transport capacity from the West and we store record volumes of gas in gas storage facilities in Slovakia. At the same time, security of supply comes at a price. “If gas transportation through Ukraine is interrupted, additional costs arise related to its supply and transportation to Slovakia and its storage.” – stated SPP CEO Vojtech Ferenc. The Slovak company estimates additional costs of between 140 and 150 million euros.

At the same time, as it was written EADaily Slovakia still has a window of opportunity to receive Russian gas, but in an alternative way. Slovakia may receive part of the lost volumes of the Turkish flow through Hungary. At least the gas transportation network operators of the two countries agreed last week to increase the capacity of the interstate interconnector.

With average use of the interconnector on the border between Hungary and Slovakia, this year it will also be able to supply more than 1.1 billion cubic meters per year. This represents more than 46% of Russian gas supplies to Slovakia.

Source

Anthony Robbins
Anthony Robbins
Anthony Robbins is a tech-savvy blogger and digital influencer known for breaking down complex technology trends and innovations into accessible insights.
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