The European Union (EU) thinks no need for the extension of the agreement to transport Russian gas to Europe via Ukraine, prior to expiration of the contract, according to Reuters citing the bloc's chief energy policy officer on Thursday. According to EU analysis, countries like Slovakia, Italy, and Austria that are served by the gas transit route will be able to find alternative supplies, according to Energy Commissioner Kadri Simson. "We have no interest to prolong the trilateral gas transit agreement with Russia, which will expire by the end of this year," Simson told an EU Parliament committee meeting. "Based on our preliminary analytics, there are alternative solutions to supply these countries who still receive some gas through the Ukrainian route," she stated. After Russia cut off gas supplies to Europe following its conflict with Ukraine in February 2022, Europe is making an effort to stop importing Russian gas. S&P Global Commodity Insights estimates that approximately 12 billion cubic meters (bcm) of gas are delivered to Europe annually through Ukraine. Before the Ukraine War, Russia supplied Europe with 155 billion cubic meters of gas annually. According to analysts, if the Ukraine transit agreement were to end, gas prices in Europe might go up a little, but overall energy security would not be jeopardized. To offset Moscow's supply, EU nations have made significant investments in renewable energy and liquefied natural gas (LNG). It has also been aided by a sharp decline in gas demand, which is partially due to weak industrial activity. Russia pays Ukraine for using its pipeline network in order to export gas to Europe under the terms of the five-year pipeline transit agreement between Moscow and Kyiv. According to Ukraine, discussions with Russia about extending the agreement will not take place. In the event that the Ukraine agreement is not extended, Russian gas exports will find other routes, according to remarks made by Kremlin spokesman Dmitry Peskov last month.
