Reports from Ukraine's national energy sector or economic analyses

Slovakia's Fico Urges EU Over Ukraine's Gas Transit Halt, Dismisses Zelensky's Claims as 'Nonsense'

Dec 31, 2024, 03:43 PM

Slovak Prime Minister Robert Fico has urged the European Union to address Ukraine's decision to halt the transit of Russian gas through its territory starting January 1, when the current transit agreement expires. In an open letter to the European Commission and the European Council, Fico called Ukraine's move "irrational" and warned that it would hurt the EU's economy far more than Russia's. He also dismissed Ukrainian President Volodymyr Zelensky's allegations that Slovakia is opening a "second energy front" against Ukraine as "nonsense." Gazprom has reduced gas flows to Europe via Ukraine to 37.2 million cubic meters on the last day before the agreement's expiration. European natural gas prices have risen, reaching over €50 per megawatt-hour for the first time in more than a year. Ukraine's national energy regulator has decided to quadruple domestic gas transportation tariffs starting January 1, 2025, to offset revenue losses from the cessation of Russian gas transit, which previously accounted for 85% of its gas industry revenues. Meanwhile, the European Union has stated it is prepared for the stoppage, citing alternative routes and liquefied natural gas supplies.