Slovakia Eyes Gas Transit Through Ukraine to Cut Energy Costs

Slovak Prime Minister Robert Fico has suggested he is open to the possibility of resuming natural gas transit through Ukraine after the current five-year transit agreement between Moscow and Kyiv expires.

Fico has urged Ukrainian President Volodymyr Zelenskiy to restart the transit, citing the impact of elevated energy costs on Slovakia and the broader region.

‘‘The pipeline that runs through Slovakia has a capacity of 100 billion cubic meters,” Fico told reporters in Brussels on Thursday. “I want to do everything to ensure it is used in the future,’’ he added.

Europe Faces Depleting Gas Inventories

Europe’s natural gas reserves are being consumed at the fastest rate since 2018 due to a surge in heating demands brought on by cold weather. Gas Infrastructure Europe data shows storage levels at just over 70%, compared to around 86% at the same time last year. Inventories are now 25% below last year’s peak, marking the steepest decline in seven years.

Slovakia Secures Alternative Gas Supplies

Despite these challenges, Slovakia has diversified its gas sources. On 1 December, Azerbaijan’s state oil company SOCAR began supplying natural gas to Slovenský plynárenský priemysel (SPP), Slovakia’s largest state-owned energy operator. This follows a short-term pilot agreement signed by SPP in November to purchase natural gas from Azerbaijan in preparation for potential disruptions to Russian supplies via Ukraine.

Russia Open to Negotiations

Meanwhile, Moscow has expressed its willingness to continue gas supplies to Europe through Ukraine if Kyiv and European nations can reach an agreement. In November, Russian Deputy Prime Minister Alexander Novak, who oversees the country’s energy policy, affirmed this position.

“Of course, in my opinion, the European countries that currently receive gas through this corridor are interested in continuing such cooperation,”  Russian Deputy Prime Minister Alexander Novak, who is in charge of Russia’s energy policy, told reporters “We are ready to supply (gas), but not much depends on us, so probably this should be negotiated directly between the users and the country through which the transit is provided.”

Financial Stakes for Ukraine and Russia

Ukraine risks losing up to $1 billion annually in transit fees from Russia. In response, Kyiv plans to quadruple domestic gas transmission tariffs for consumers to compensate for the shortfall. Simultaneously, Russia’s Gazprom stands to lose approximately $5 billion in gas sales. Notably, Ukrainian gas accounted for 5% of the European Union’s total gas imports last year.