European Union (EU) Energy Commissioner Kadri Simson warned regional gas companies 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 is set to expire on December 31, 2024, and the Ukrainian government has said it will not extend the deal.
Ms Simson said the European Committee was fully prepared for a scenario where there was no gas transit by using alternative supply routes and relying on large gas storage capacities.
European Committee President Ursula von der Leyen stressed that Ukraine will decide the future of the gas pipeline, while EU officials said they would not participate in new negotiations.
If this gas route is lost, it could intensify the battle 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 Türkiye, and about 10% of Moscow's total gas exports.
The pipeline starts at Russia's Urengoy gas field before entering Ukraine via the Sudzha gauging 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.
Two other routes — the Yamal and Nord Stream pipelines — were closed in late 2021 and fall 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 only supply 14.6 billion cubic meters of gas through the Ukrainian transit pipeline.
EU countries will suffer the greatest direct losses when the Russia-Ukraine transit deal ends, analysts say.
The EU imported 45% of its gas from Russia in 2021. This figure dropped to 15% in 2023.
However, Hungary, Austria and Slovakia still get the majority of their gas from Russia.
All three countries are landlocked and lack direct access to LNG terminals, having long relied on Russian supplies via pipeline. All three are tied to Russia under long-term contracts that run beyond 2025.
Hungary, which depends on Russia for about 80% of its gas imports, may be better placed to cope with the disruption than its neighbors. Budapest can continue to receive supplies from Russia via Türkiye after the Ukrainian transit route is closed.
Austria and Slovakia are the countries most affected by the closure of the gas pipeline through Ukraine.
