EU proposes new plan to resolve Ukraine-Slovakia gas dispute

The European Union has proposed a new plan to resolve the gas dispute between Ukraine and Slovakia that could have a significant impact on the region’s energy policy. According to Politico, Brussels is proposing to use Ukraine’s vast underground gas storage facilities to restore gas supplies to the EU without Russia.

The initiative, which aims to compensate Slovakia for losses from the suspension of Russian gas transit, which previously earned it up to €500 million annually, was discussed during a recent visit by European commissioners to Kyiv.

Implementation of the plan: what’s in store

Under the proposed plan, Ukraine plans to increase gas imports from Greece and Turkey, which will be stored in its vast underground storage facilities, the largest in Europe. In the winter, this gas will be sent through Slovakia to other EU countries, including Hungary. The plan thus envisages Slovakia regaining its transit status without violating sanctions against Russian gas.

Reaction and position of the parties

Slovak Prime Minister Robert Fico has expressed his indignation at the possibility of reducing electricity exports to Ukraine and has called for the renewal of the gas transit agreement with Russia. However, the EU has identified alternative routes that do not involve purchasing Russian gas, which is in line with the REPowerEU initiative to completely abandon Russian gas by 2027.

Challenges and obstacles

Despite the potential benefits of the plan, its implementation may encounter difficulties. For example, the current pipeline connecting Turkey, Bulgaria, Romania and Ukraine has a limited capacity of only 2.5 billion cubic meters of gas per year, which is significantly less than the planned 10 billion cubic meters.

In addition, the high tariffs charged by the Romanian company Transgaz for gas transportation may become an additional obstacle to the successful implementation of the project.

Conclusion

The use of Ukrainian gas storage facilities has the potential not only to increase the energy security of the region, but also to bring additional revenues to the Ukrainian budget. Discussions on the plan are expected to continue in the coming weeks, and a final decision will be made depending on the positions of all stakeholders.

The European Union has confirmed its readiness to abandon Russian natural gas transiting through Ukraine after the current contract expires in December of this year, which indicates a strategic rethinking of the region’s energy policy.