RT reported that Ukrainian President Volodymyr Zelensky said on August 27 that Kiev will not extend the gas transit agreement with Moscow when it expires at the end of 2024.
On August 28, talking to the press, Kremlin spokesman Dmitry Peskov warned that the termination of Russian gas transportation through Ukraine would seriously affect European Union (EU) consumers.
Ukraine's decision could lead to higher gas prices for European consumers who want cheaper gas, Mr Peskov said.
"Europeans will have to pay more to buy gas from other suppliers, including US liquefied natural gas (LNG), making the European industry less competitive" - Spokesperson said by Russian President Vladimir Putin.
However, Lavrov pointed out that there are also alternative routes for supplying Russian gas to the EU , including through a planned gas hub in Turkey. Negotiations on this issue are underway.
Brokered by the EU, the five-year deal between Kiev and Moscow, signed in 2019, stipulates that Russian energy giant Gazprom transport 65 billion cubic meters of gas through Ukraine to Europe by 2019. 2020 and 40 billion cubic meters annually from 2021 to 2024.
“The agreement with Russia will not be extended,” President Zelensky said at a press conference on August 27, adding that after the contract expires, Ukraine will decide together with the EU on the transit of Russian gas through its territory. Ukrainian Energy Minister German Galushchenko previously confirmed that Kiev has no plans to extend the agreement.
Gazprom, once the EU's main gas supplier, has significantly reduced exports to the bloc in 2022, following sabotage of the Nord Stream pipeline .
Ukraine-related sanctions imposed by the EU on Russia have so far not targeted pipeline gas, but many members, including Poland, Bulgaria, Finland, the Netherlands and Denmark have willing to stop importing. However, several EU countries, including Austria, Slovakia, the Czech Republic and Italy, are still importing gas through Russian pipelines.
There are concerns that the flow of gas could stop soon after Kiev's military offensive in Russia's Kursk region , home to the gas transit point into Ukraine, Sudzha.
Last year, Gazprom supplied about 15 billion cubic meters of gas to the EU via this route, accounting for 4.5% of the bloc's total consumption.
Gazprom previously confirmed that gas transit via Sudzha continues in accordance with the contracted volumes.
Bloomberg quoted sources saying European officials are negotiating with Ukraine to maintain Russian gas flows next year.
