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Russia Warns of Higher Gas Prices for Europe if Ukraine Transit Deal Ends
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European consumers may face higher gas prices if the current contract for Russian gas transit through Ukraine is not renewed after it expires on December 31. This warning was issued by Dmitry Peskov, spokesman for Russian President Vladimir Putin, and reported by the state-run TASS news agency.
Peskov emphasized that Ukraine's decision not to extend the contract would significantly harm the interests of European consumers, leading to much higher gas prices. This increase, he warned, could reduce the competitiveness of European industries.
Ukrainian officials have consistently stated that they do not intend to renew the gas transit agreement with Russia. President Volodymyr Zelensky reiterated this position yesterday but expressed willingness to discuss potential requests from European companies.
The current contract governs the flow of gas through the Soviet-era Urengoy-Pomary-Uzhhorod pipeline, which transports gas from Western Siberia to Sudzha in Russia's Kursk Oblast. From there, the gas moves through Ukraine to Slovakia, where it splits into two routes—one heading to the Czech Republic and the other to Austria. Hungary, Slovakia, and Austria are the primary customers of this Russian gas.
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