Russia: European consumers will suffer if Ukraine refuses to expand gas transit

European consumers will be hit hard and have to pay more for natural gas if Ukraine does not extend the gas transit agreement to allow Russian gas to pass through its territory on its way to Europe, Kremlin spokesman Dmitriy said on Wednesday Peskov.

Ukraine has already stated several times that it will not extend the current gas transit agreement, which expires on December 31, 2024. The most recent statement came from Ukrainian President Volodymyr Zelensky earlier this week, when Zelensky said: “No one will not extend the agreement with Russia. .”

Ukraine, however, will consider the requests of European gas transit companies from other sources, the Ukrainian president added.

Speaking at a regular press conference on Wednesday, Russia’s Peskov said that if Ukraine decides not to extend the gas transit agreement, it will “severely harm the interests of European consumers, who are still willing to buy more volumes of Russian gas guaranteed and affordable, which is cheaper than gas from other sources, especially from the United States.”

“European consumers will have to pay much more for gas, thus making their industries less competitive,” Peskov was quoted as saying by Russian news agency Interfax, commenting on Zelensky’s words that Ukraine would not extend its agreement to gas transit with Russia.

Russia is looking at alternative routes for gas supplies to Europe, including a plan to create a hub in Turkey, Peskov said today, adding that “this is being worked on.”

Russia has seen its gas exports to Europe cut significantly since the invasion of Ukraine. The major drop in Gazprom’s gas supplies was due to the shutdown of Russian pipeline gas exports to almost all European countries.

Before the start of the war in Ukraine, Russia supplied about a third of all gas to Europe and was the single largest supplier.

Norway has replaced Russia to become Europe’s main gas supplier.

By Charles Kennedy for Oilprice.com

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