Monday

2nd Oct 2023

Ukraine signs gas deal with Slovakia

  • Russia has almost doubled the price of gas in Ukraine (Photo: Naftogaz of Ukraine)

Slovakia is set to pump reserve natural gas to Ukraine in a reverse-flow deal signed on Monday (28 April).

The gas will run through the unused Vojany pipeline on the Slovakian side, managed by Slovak gas pipeline operator EUstream, to Uzhgorod in Ukraine.

Read and decide

Join EUobserver today

Become an expert on Europe

Get instant access to all articles — and 20 years of archives. 14-day free trial.

... or subscribe as a group

EUstream, along with its Ukraine counterpart Ukrtransgaz, aim to start pumping the gas sometime in autumn. The European Commission says it could amount to around 8 billion cubic metres (bcm) per year.

Despite around two years of negotiations, the move is in part framed by the escalating tensions between Russia and Ukraine.

Russia supplied 30 percent of gas to Europe last year, with a significant amount transited through Ukraine.

At the signing ceremony in the Slovak capital Bratislava, EU commission president Jose Barroso, described the deal as one that "contributes to greater energy security in Eastern Europe and the EU as a whole".

Around half of Ukraine's 50 bcm of gas consumed annually is sourced from Russia.

With Monday's agreement, Slovakia becomes the third and largest contributor of reverse-flow gas to Ukraine in the EU after Hungary and Poland.

"Gas via Slovakia will bring a considerable addition to the volumes that Ukraine can already import from Hungary and Poland," noted EU energy commissioner Gunther Oettinger.

Ukraine had stopped the Hungary and Poland imports after Russian state-controlled energy giant Gazprom slashed prices in December.

The cut was part of a larger $15 billion loan and a 33 percent discount on natural gas offered by Russia to Ukraine's Yanukovich-led government.

The discounted $270 per 1,000 cubic metres price has since almost doubled with flows now picking up again from Hungary and Poland.

Russia cancelled its 2010 Kharkov Agreement after it annexed Crimea.

The agreement had given Ukraine a gas rebate in exchange for hosting Russia's naval fleet in Sevastopol port. Moscow says the port is no longer a part of Ukraine.

Gazprom also issued an ultimatum for Kiev to pay $3.5 billion in unpaid bills by 7 May or risk getting cut off, sparking fears many in Ukraine may be without heating next winter.

Industry sources told Reuters last month that Ukraine has enough gas stored up to last at least four months should Gazprom stop the flows.

At 31 bcm, Ukraine has the largest gas storage capacity volume in Europe with most of the facilities found in the west of the country.

The EU is pushing to increase the volume of Slovak flows.

EUstream, for its part, has not completely ruled out upping the volume by using another larger transit gas pipeline but said it may run into legal problems.

The larger transit line carries Russian gas to the European Union and is partly managed by Gazprom Export.

The Slovak company, which describes itself as the largest single carrier of Russian gas in the European Union, said it would first have to reach an agreement with its Russian counterpart.

Opinion

Punish Belarus too for aiding Putin's Ukraine war

While Belarus has not sent its own troops to fight Russia's war in Ukraine, the Minsk dictatorship has been heavily involved. As a result, Belarus must be punished for its involvement — what can the world do to sanction Belarus?

Latest News

  1. European Political Community and key media vote This WEEK
  2. Is the ECB sabotaging Europe's Green Deal?
  3. The realists vs idealists Brussels battle on Ukraine's EU accession
  4. EU women promised new dawn under anti-violence pact
  5. Three steps EU can take to halt Azerbaijan's mafia-style bullying
  6. Punish Belarus too for aiding Putin's Ukraine war
  7. Added-value for Russia diamond ban, as G7 and EU prepare sanctions
  8. EU states to agree on asylum crisis bill, say EU officials

Stakeholders' Highlights

  1. Nordic Council of MinistersThe Nordic Region is stepping up its efforts to reduce food waste
  2. International Medical Devices Regulators Forum (IMDRF)Join regulators, industry & healthcare experts at the 24th IMDRF session, September 25-26, Berlin. Register by 20 Sept to join in person or online.
  3. UNOPSUNOPS begins works under EU-funded project to repair schools in Ukraine
  4. Georgia Ministry of Foreign AffairsGeorgia effectively prevents sanctions evasion against Russia – confirm EU, UK, USA
  5. International Medical Devices Regulators Forum (IMDRF)Join regulators & industry experts at the 24th IMDRF session- Berlin September 25-26. Register early for discounted hotel rates
  6. Nordic Council of MinistersGlobal interest in the new Nordic Nutrition Recommendations – here are the speakers for the launch

Join EUobserver

Support quality EU news

Join us