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The Kremlin said on Wednesday that Kiev's decision to allow a contract with Gazprom to supply Russian gas to Europe to lapse would severely harm European consumers.
Ukrainian President Volodymyr Zelensky said on Tuesday that his country would not extend the transit agreement through Ukraine beyond December 31.
“It's over,” he said.
Despite the ongoing conflict, Russia supplied more than 14 billion cubic meters of gas to Europe via Ukraine in 2023, falling short of the 40 billion cubic meters stipulated in the contract.
EU member states Austria, Hungary and Slovakia still receive Russian gas in this way.
The three countries remain dependent on Russian natural gas, despite the EU promising to become free from Russian natural gas by 2027 following Moscow's launch of a full-scale offensive into Ukraine in February 2022.
“Such a decision by Ukraine will seriously damage the interests of European consumers who still want to buy Russian gas,” Kremlin spokesman Dmitry Peskov said.
“They will simply have to pay more, which will make their industry less competitive,” he added.
The Ukrainian company signed a five-year contract with Gazprom at the end of 2019.
President Zelenskiy suggested last month that he was in talks with Azerbaijan, a major natural gas producer, about replacing Russian natural gas that passes through Ukraine.
However, Ukraine does not share a border with Azerbaijan, meaning that Azerbaijan's gas would still have to be transported by pipeline through Russia.
Azerbaijan's President Ilham Aliyev said in late July that he had asked the EU to help Kiev reach an agreement in its talks with Moscow.
Since August 6, Ukraine has launched an unprecedented cross-border counter-offensive against Russia's Kursk region, seizing dozens of settlements, including the town of Suzha.
The town of about 5,000 people is home to Suzha metering station, the last major stop for Russian pipeline gas heading to Europe via Ukraine.
Bar/GV