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Russia, Ukraine can shift to gas transit auctions since 2025 — experts

The agreement on Russian gas transit via Ukraine is due to expire in late 2024

MOSCOW, June 1. /TASS/. Expiry of the agreement on Russian gas transit via Ukraine in late 2024 does not mean that Russian gas supplies to Europe along this route will be halted, experts questioned by TASS say.

Ukraine does not intend to renew the gas transit agreement in Russia due to expire in 2024, ex-chief of the Austrian oil and gas company OMV Gerhard Roiss said today, referring to a conversation with a deputy energy minister of Ukraine.

"Firstly, Gazprom also did not intend to prolong it [the transit contract - TASS], as far as I am aware. Furthermore, European politicians imposed this contract on Russia after 2019, by Germany in the first instance. Gazprom considered the primary option as early as in 2019 to be the transition to short-term auctions and short-term capacity booking, as it did with the Yamal-Europe [gas pipeline] since 2021. In other words, to book on the basis of actual dynamics of supplies, for a month ahead or for a day ahead. This option is highly likely to be used," deputy director of the Institute of Energy and Finance Aleksey Belogoryev said.

Kiev considered earlier an opportunity to build relations with Gazprom under the European model, infoTEK expert Alexander Frolov said. "That is, Gazprom will book capacities at the entry of the Ukrainian gas transport system and pay within the framework of auction mechanisms adopted in the EU. The relevant legal base was created by Ukraine in the second half of 2010s. To all appearances, Kiev officials will push forward exactly this interaction model," the expert added.