Ukrainian Prime Minister Denys Shmyhal met with his Slovak counterpart Robert Fico near Uzhhorod on Monday, October 7. (source: TASR)
At the end of this year Slovakia may face a scenario similar to that from early 2009, when natural gas supplies from Russia via Ukraine were completely halted for about two weeks as a result of a pricing conflict between Moscow and Kyiv. Ukraine has stated repeatedly that it will not extend its gas transit agreement with Russia after it expires at the end of 2024. Compared to 2009, Slovakia is much better prepared for such a situation.
“We can currently say that many scenarios are in play,” Richard Kvasňovský, executive director of the Slovak Gas and Oil Association (SPNZ), told The Slovak Spectator, adding that it is very unlikely the contract will continue. There are scenarios assuming the continuation of gas transit in some form, as well as scenarios accounting for what will happen if the transit does not continue. “But what can be said is that the Slovak gas industry is ready for any eventuality, so that it can supply uninterrupted and stable natural gas to its customers, whether they are industrial companies, various institutions, households and so on.”
Expiring contract
Ukrainian Prime Minister Denys Shmyhal reiterated that Ukraine would not extend its gas transit agreement with Russia, which expires at the end of 2024, at an intergovernmental meeting with Prime Minister Robert Fico on Monday, October 7.
“Ukraine once again says that it will not continue the transit agreement with Russia after it expires,” Shmyhal told a news conference sitting alongside Fico, as reported by Reuters, adding that it is counting on the gradual diversification of supplies.
Ukraine’s strategic goal is to deprive the Kremlin of profits from the sale of hydrocarbons the aggressor is using to finance the war, explained Shmyhal.
“We are calling on all European countries to completely abandon oil and gas from Russia,” said Shmyhal, as quoted by the newsukraine.rbc.ua website, adding that Ukraine understands “the acute dependence of some countries, in particular Slovakia, on this resource,” but it expects a gradual diversification of supplies.
Fico, who has been a big critic of Western military aid to Ukraine and has stated that there is no military solution to the Ukrainian-Russian war, said that talks with Ukraine’s government confirmed that Kyiv remained interested in using its gas and oil transit systems after the deal with Russia expires.
“I welcome our discussion which confirmed that you, like us, have an interest in the continued usage of the transit system you have on Ukrainian territory, when it comes to both oil and gas,” Fico said, as quoted by Reuters.
Kvasňovský sees this statement as being significant, as it holds out the prospect of European gas traders being able to use underground gas storage facilities in Ukraine that have a capacity of about 30 billion m.
Shmyhal said that Slovakia and Ukraine agreed on the creation of an Eastern European energy hub, which will aim to utilise these large-scale Ukrainian gas storage facilities.
