The year 2024 could spell trouble for countries that depend on Russian gas supplies. The end of transit through Ukraine will affect Austria, Slovakia and Hungary.
In 2024, the agreement under which Ukraine continues to supply Russian gas will expire. Kiev has already announced that it will not try to extend the current contract with Gazprom or conclude a new contract. Ukrainian Energy Minister Herman Galushchenko already indicated in June that there was little chance of an agreement with Russia. Currently, Kiev officially confirms that there will be no extension of the transit.
– Firstly, we will definitely not be a party to the negotiations with the Russians, and that is obvious, and secondly, I think that next year will be decisive for Europe’s ability to function without Russian gas at all. I see all the reasons why this is happening,” Galushchenko said in an interview with Voice of America.
The Ukrainian minister emphasized that next year would show how the EU has done without Russian pipeline gas. Now is the time for even greater diversification of supply and the switch to liquefied gas.
Where does Russian gas go?
At present, transit through Ukraine is the only way to deliver pipeline gas from Russia. It can transport about 40 million m3 of gas per day. It goes to Hungary, Slovakia and Austria. The end of transit will hit Hungary hardest as it imports most of its gas from Russia.
It is worth recalling that part of the gas exported to these countries is then re-exported to Ukraine. However, Kiev is not afraid of the end of Russian supplies. Galushchenko emphasizes that Ukraine has significant gas reserves – not only sufficient for itself, but also for its EU partners.
– I am sure that next month there will only be more gas injections, which means that Ukraine is also a reliable partner in wartime. Secondly, the fact that Ukraine is able to guarantee the EU’s security of supply is important, according to the minister.
Source: Do Rzeczy
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
