European Union (EU) Energy Commissioner Kadri Simson warned gas companies in the region that any potential new deal to maintain gas flows from Russia through Ukraine would be a "dangerous" option, Bloomberg reported.
"There is no excuse, the EU can live well without Russian gas," Ms. Simson said at a press conference after a meeting of EU Energy Ministers on October 15. "This is a political choice and a dangerous choice," Ms. Simson warned EU gas companies.
The key gas transit agreement between Moscow and Kiev expires on December 31, 2024, and the Ukrainian government has said it will not extend the deal.
Ms. Simson said that the European Commission has fully prepared for the scenario of no transit gas by using alternative supply routes and relying on large gas reserve capacity.
European Commission President Ursula von der Leyen stressed that Ukraine will decide the future of the gas pipeline, while EU officials have said they will not participate in new negotiations.
If the route is lost, it could intensify the war between Europe and Asia over liquefied natural gas (LNG) supplies.
The transit route through Ukraine is used by Russia to transport about 50% of its total pipeline gas exports to Europe, including Turkey, and about 10% of Moscow's total gas exports.
The pipeline starts at Russia's Urengoy gas field before entering Ukraine via the Sudzha metering station in Kursk Oblast. The gas enters the EU in Slovakia before branching off to Austria and Hungary.
The Ukrainian transit pipeline is one of two remaining gas pipelines connecting Russia to Europe, the other passing through Türkiye.
The other two lines - the Yamal and Nord Stream pipelines - were closed in late 2021 and the fall of 2022.
Under the current agreement between Russia's Gazprom and Ukraine's Naftogas, Russia pumps 40 billion cubic meters of gas per year.
However, in 2023, Russia will supply only 14.6 billion cubic meters of gas via the Ukrainian transit pipeline.
Analysts say EU countries will suffer the biggest direct losses when the Russia-Ukraine transit deal ends.
The EU will import 45% of its gas from Russia by 2021. This figure has dropped to 15% in 2023.
However, Hungary, Austria and Slovakia still receive the majority of their gas from Russia.
Both countries are not bordering the sea and do not have direct access to LNG ports, as they have long relied on Russian supplies via pipelines. All three countries are tied to Russia with long-term contracts until after 2025.
Hungary, which depends on Russia for about 80% of its gas imports, may be better able to cope with the disruption than its neighbours. Budapest could continue to receive supplies from Russia via Türkiye after the closure of the Ukrainian transit route.
Austria and Slovakia are the countries most affected by the closure of the gas pipeline through Ukraine.
