MOSCOW, Aug 28 (Reuters) – The Kremlin said on Monday that a deal on shipping Russian natural gas through Ukraine expires on Dec 31 and European consumers will face higher prices unless Kiev agrees to extend it.
Ukraine has repeatedly said it has no plans to sign new gas transit contracts with Russia while the military conflict continues.
Kremlin spokesman Dmitry Peskov told reporters in a regular conference call that if Kiev does not extend the deal, Russia could find an alternative route, such as a planned gas base in Turkey.
“There are (other) routes, but of course, such a decision on the part of Ukraine would seriously damage the interests of European consumers who still want to buy more guaranteed and more affordable Russian gas,” Peskov said.
He also said Europe would have to pay more for gas from other suppliers, including liquefied natural gas from the United States.
Most countries that receive Russian gas via Ukraine say they are bracing for gas supplies to stop when a transit agreement between Ukraine and Russia expires at the end of the year because Ukraine does not want to renew it.
Another option would be for Gazprom to supply part of the gas via other routes, such as TurkStream, Bulgaria, Serbia and Hungary, but the supply capacities via these routes are limited.
The EU and Ukraine also urged Azerbaijan to expedite talks with Russia on a gas transit agreement.
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Reporting by Gleb Stolyarov; Writing by Vladimir Soldatkin; Editing by Mark Trevelyan and Barbara Lewis
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