Contract expires
Ukraine wants to end gas transit to Europe
Ukraine has announced that it will end the transit of Russian gas supplies to Western Europe. Energy Minister Herman Halushchenko announced on Sunday that the government in Kiev would not extend the transit contract, which runs until the end of the year.
"I can confirm that we are not planning to conclude any additional agreements or extend this agreement," he said in a statement. Austria currently still obtains around two thirds of its gas from Russia - via Ukraine. OMV has a long-term supply contract with Russia until 2040.
Fears of rising gas prices in Europe
The current transit contract, which will continue to supply customers in the west despite the war started by Russia, dates back to 2019. Experts fear that an end to the transit of gas through Ukraine could lead to an increase in the price of gas on the European market.
Russian natural gas from several large pipeline routes from northern Siberia and Central Asia converge in Ukraine and are transported to Austria and Germany via Slovakia and the Czech Republic using the Transgas route.
WKÖ and IV: Acute need for action
The Austrian Federal Economic Chamber (WKÖ) and the Federation of Austrian Industries (IV) see an urgent need for action. If Russian gas is no longer routed through Ukraine on January 1, 2025, this will be earlier than politically planned, WKÖ Secretary General Karlheinz Kopf told journalists on Monday.
"We have not used two years and have not acted," said IV Secretary General Christoph Neumayer. "At the very least, action must be taken now and consistently", he agreed with Kopf.
Other countries had already taken measures and expanded their capacities, "but Austria has been tardy", Neumayer emphasized. Hungary had invested in pipeline capacities, Italy was sourcing gas from North Africa and Germany had LNG terminals, Kopf cited as examples.
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