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EU Energy Ministers Discuss Russian Gas as Ukraine Transit Deal Nears End

by Krystal

European Union energy ministers are currently addressing the flow of natural gas from Russia to the EU as the transit agreement through Ukraine approaches its expiration date.

The ministers are also examining the increase in Russia’s liquefied natural gas (LNG) shipments to the EU in recent months.

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In June, the EU introduced a new package of sanctions against Russia due to its invasion of Ukraine. This package includes a ban on reloading Russian LNG in EU territory for the purpose of transferring it to other countries, which will take effect after a nine-month transition period. The ban applies to both ship-to-ship and ship-to-shore transfers, as well as reloading operations. However, it does not affect the import of Russian LNG but only its re-export to third countries through the EU.

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Several EU member states, including France and Belgium, are urging the European Commission to enforce stricter requirements for reporting LNG import volumes from suppliers and storage companies. Belgium’s Energy Minister, Tinne van der Straeten, highlighted the recent doubling of LNG volumes in Belgium. She noted that while these volumes likely aim to ensure security of supply in Europe, there are challenges in implementing the EU’s 14th sanctions package. Therefore, she is advocating for a tracking system for these imports.

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Regarding the remaining pipeline gas flows from Russia to the EU via Ukraine, Ukrainian officials have stated that they will not extend the current gas transit deal, which expires on December 31, 2024.

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In contrast, Slovakia, which continues to receive Russian gas, has expressed its desire to maintain the route through Ukraine.

EU energy ministers are also discussing the possibility of replacing Russian gas supplies with those from Azerbaijan. However, details about the technical and political feasibility of this transition remain unclear, according to Bloomberg.

Currently, the EU has not reached an agreement on how to replace Russian gas flows. Sources familiar with the discussions suggest that a potential deal might be finalized at the last minute or early next year.

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