Tensions Rise as Ukraine Ends Russian Gas Transit Agreement

Ukrainian Prime Minister Denys Shmyhal on October 7 told Slovakian counterpart Robert Fico that Kyiv will not extend a gas-transit deal with Russia when it expires at year’s end, a move likely to increase tensions between the EU and NATO member and Ukraine, which aspires to join both organizations.

«Ukraine once again says it will not continue the transit agreement with Russia after it expires,» Shmyhal told a joint news conference with Fico in the border city of Uzhhorod in western Ukraine on October 7.

«Ukraine’s strategic goal is to deprive the Kremlin of profits from the sale of hydrocarbons which the aggressor uses to finance the war,» he said.

Shmyhal said Kyiv understands the «acute dependence» of some states, including Slovakia on the Russian gas supply, but said eventual diversification of supply deliveries will overcome such issues.

Shmyhal also said Ukraine and Slovakia — which share a border of about 100 kilometers — had agreed to establish an Eastern European energy hub using the resources of the substantial Ukrainian gas storage facilities.

Fico praised Kyiv’s continued commitment to utilizing its transit systems after the deal with Russia expires.

«I welcome our discussion which confirmed that you, like us, have an interest in the transit system you have on Ukrainian territory continuing to be used, when it comes to both oil and gas,» Fico said.

Slovakia, under Russian-friendly leader Fico, and Ukraine have been at loggerheads over the transit of Russian oil and gas, the export of which is a major source of funding for Russia, which has been struggling under the weight of Western sanctions since its full-scale invasion of Ukraine in February 2022.

At the time Moscow launched its invasion, the EU was largely dependent on Russia for gas, but it has since sought alternative supplies. Most EU countries boycotted the import of Russian oil and gas, with the exception of a few, including Hungary and Slovakia.

A deal has reportedly been reached to continue transit of Russian oil through Ukraine, but gas supplies will be severely curtailed should Kyiv follow through on its vow to end transit services at the start of 2025.

Russian gas deliveries to Europe via pipeline are currently limited to two routes: the first through the European leg of TurkStream, a joint Gazprom-Turkish project that ships gas from Russia to Turkey under the Black Sea and then onwards to Central and Southeastern Europe; the second via Ukraine through the Sudzha entry point on the border with Russia.

Russia’s current contract with Ukraine is set to expire at the end of 2024.

Outside of the fuel dispute, Fico stood by his strong opposition to Ukraine’s possible entry into NATO, while also saying he approved of Kyiv’s bid to join the European Union.

Fico, along with Hungarian Prime Minister Viktor Orban — also seen by many to be Russia-friendly — have opposed Western military aid to Ukraine and have pressed for peace deals unacceptable to Kyiv.

«Slovakia is interested in the restoration of Ukraine and in good neighborly relations. We understand that this peace should be of high quality and sustainable for you. You have to have security guarantees, and we understand that. We will support all initiatives to achieve this goal,» Fico said.

«We will not put obstacles in your way to Ukraine’s membership in the EU,» Fico was quoted as saying by the Suspilne news portal.

«There will be countries that will be against Ukraine quickly becoming a member of the European Union. I say this openly and clearly. We want to provide you with our admission experience. This experience is interesting and valuable. We are quite cold about Ukraine’s membership in NATO, but we will participate in all conferences,» Fico said.

Prior to their meeting, Fico was quoted as saying about NATO membership: «It would only create a basis for World War III. Because you know what can happen: Once Ukraine is a NATO member and a conflict similar to the present one breaks out, it will count as an attack on a NATO member state and some extremely dangerous mechanisms can be triggered.»

Fico said his country was «preparing a new package of financial assistance to Ukraine. The Slovak government is also ready to provide a package of military aid, but it will be a non-lethal weapon.»

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