Ukraine ready to discuss non-Russian gas transit to Europe: PM Shmyhal

Ukraine is ready to discuss the transit of gas via its territory provided it is non-Russian molecules, Ukraine's Prime Minister Denys Shmyhal said late Dec. 16 following talks with his Slovakian counterpart Robert Fico.

The current five-year Russia-Ukraine gas transit deal expires at the end of 2024 and Russian gas flows to Europe -- including to Slovakia -- will cease if no new arrangements are put in place.

Some 42 million cu m/d of Russian gas still flows to Europe via the Sudzha interconnection point on the Ukrainian border.

"If the European Commission officially addresses Ukraine regarding the transit of any gas -- except Russian -- we will of course discuss it," Shmyhal wrote on his official Telegram channel.

"We are ready to implement the relevant agreements based on the principle of energy security," he said, adding that Ukraine's priority was the guaranteed energy security for all of Europe, in particular gas deliveries this winter.

However, Shmyhal again stressed that the Russia-Ukraine gas transit deal would not be extended after it expires.

"Ukraine is grateful to all partners in Europe for understanding that Russia is using its energy exports to finance an unprovoked war against our state," he said.

Slovakian PM Fico has pledged to hold a series of talks in the run-up to the new year to ensure the continued flow of gas to the country via Ukraine in 2025.

Bratislava is hopeful new arrangements can be put in place by the end of 2024.

Slovakian imports

Slovakia is largely dependent on Russian gas imports via Ukraine, but main importer SPP has said the company would guarantee secure gas supplies for its customers "in any situation."

Slovakia has diversified its supply routes by building pipeline connections with Hungary and Poland and increasing reverse flow capacity via the Czech Republic and Austria.

In May, SPP told S&P Global Commodity Insights it considered the creation of a European consortium to take delivery of gas at the Russia-Ukraine border as "feasible" to ensure continued supplies of Russian gas via Ukraine post-2024.

Concerns over the loss of Russian gas supplies to Europe have lent support to European gas prices in recent months.

Platts, part of Commodity Insights, assessed the benchmark Dutch TTF month-ahead price on Dec. 16 at Eur39.78/MWh.

Azerbaijan has been in talks in recent months with Russia and Ukraine over the potential to facilitate continued gas transit via Ukraine.

Azerbaijan's President Ilham Aliyev said in September that he remained optimistic about the negotiations and hoped for a breakthrough, but no deal has yet been publicly announced.

Ukraine's Naftogaz has also said it held talks with Socar on the potential transit of gas from Azerbaijan via Ukraine and the storage of Socar gas in Ukraine.

Ex-Naftogaz CEO Oleksiy Chernyshov said in August that two scenarios were possible: a complete stop of flows or a model of alternative suppliers and owners to ensure volumes can be delivered to customers in the EU.

Chernyshov also said a "prerequisite" for cooperation would be an offer for Socar to store gas in Ukrainian storage facilities.

Russian gas transit via Ukraine was as high as 117 Bcm in 2008 but fell to just 14.65 Bcm in 2023.