EU Warns European Gas Companies of 'Dangerous' Transit Deals with Russia After End of the Agreement
The EU is ready for a scenario of zero transit of Russian gas, says European Commissioner for Energy Kadri Simson. She said this at a press conference following a meeting of the EU Energy Council.
‘There are no excuses, the EU can live without this Russian gas,’ Simson said at a press conference following the meeting of energy ministers. ‘This is a political choice, and a dangerous one,’ she added.
The key agreement on gas transit to Europe between Russia and Ukraine expires on 31 December. Negotiations are currently continuing to try to keep gas flowing to Europe via a pipeline through Ukraine. However, an agreement does not appear to be close with less than three months to go. Ukraine and Russia have said they are willing to find a solution that could involve Azerbaijan, although concerns have been raised about Russian supplies being secretly blended, Bloomberg reports.
Simson added that the EU's gas storage facilities are currently 95% full, and the process of pumping gas there continues. The EU has also diversified its gas supplies and increased the share of renewable energy sources.
She explained that Central and Southeastern Europe already has alternative supply routes to fully replace the 14 billion cubic metres of Russian gas that are still transiting through Ukraine.
‘If member states prefer to continue importing Russian gas and do so even beyond the contracted capacity, or if they want to sign new agreements for new capacity, I want to make it clear. This is not a necessity. It is a political choice, and it is a dangerous choice,’ Simson said.
‘And we must remember that the price of relations with Russia is not only measured in terms of gas prices, but also in terms of lives lost in Ukraine,’ she added.
According to the report, renewable energy production is breaking new capacity records. In the first half of 2024, half of the EU's electricity was generated from renewable sources.
The share of Russian gas in EU imports fell from 45% in 2021 to 18% by June 2024, while imports from reliable partners such as Norway and the United States increased.
The EU reduced its gas demand by 138 billion cubic metres between August 2022 and May 2024.
On 19 August 2024, the EU reached 90% of its winter gas storage capacity, well ahead of the 1 November deadline.
Energy prices are more stable and remain well below the peak of the energy crisis in 2022.