Ukraine Decides to Terminate Gas Transit Agreement with Russia

Ukraine's Decision to End Transit Agreement

Ukraine's Prime Minister, Denys Shmyhal, has announced that the country will not renew its gas transit agreement with Russia after it expires. This announcement was made during a joint press conference with the Slovak Prime Minister, Robert Fico. The decision is part of Ukraine's wider strategy to reduce Russian energy revenues, which Kyiv alleges are being used to finance the ongoing conflict. Shmyhal stated on his Telegram account that their strategic objective is to impose sanctions on the Russian gas molecule and deprive the Kremlin of profits from the sale of hydrocarbons, which are being used to finance the war.

Impact on Europe's Energy Landscape

The current transit agreement, which allows Russian gas to be transported to Europe via Ukraine, is due to expire in 2024. Its non-renewal could have significant implications for Europe's energy landscape, especially for countries that are still dependent on Russian supplies. Shmyhal called on all European countries to completely abandon oil and gas from the Russian Federation, advocating for a united front against Russia's energy exports. He acknowledged the challenges faced by countries such as Slovakia and Hungary, which are heavily dependent on Russian gas. However, he expressed his hope for a gradual diversification of supplies.

Ukraine's Commitment to International Obligations

Despite Ukraine's decision not to renew the transit deal, Shmyhal confirmed his country's commitment to its international obligations. He stated that Ukraine is prepared to continue fulfilling its obligations in accordance with the Association Agreement with the European Union and the Energy Charter Treaty, indicating Ukraine's ongoing cooperation with the EU in energy matters. However, this commitment has been questioned in recent times, with Ukraine blocking the “Friendship” oil pipeline from Russia, which supplies oil to Slovakia, Hungary, and Czechia. This action threatened to plunge Central and Eastern European countries into an energy crisis, and calls from the respective governments to reverse the decision were ignored in Brussels.

Reactions and Disputes

The Hungarian communications director of Fidesz-KDNP, Tamás Menczer, criticized the move, stating that they are being punished for their support for peace and their energy security is being attacked. He speculated that this action may not have been initiated solely by Ukraine, but could have been influenced by Brussels or even pro-war American Democrats. Following a threat of court proceedings from Hungarian Foreign Minister Péter Szijjártó, Oleksiy Chernisov, the president of Ukrainian energy giant Naftogaz, claimed that there had been no reduction in supplies. This statement was strongly disputed by Budapest.

Bottom Line

Ukraine's decision to terminate its gas transit agreement with Russia could have far-reaching implications for the European energy landscape. The move is part of a broader strategy to reduce Russian energy revenues, which Ukraine claims are being used to fund the ongoing conflict. This decision has sparked disputes and raised questions about Ukraine's commitment to its international obligations. What are your thoughts on this development? Share this article with your friends and let us know your views. Don't forget to sign up for the Daily Briefing, which is available every day at 6pm.