Kremlin spokesman Dmitry Peskov said on Wednesday that if Ukraine does not extend a gas transit agreement that allows Russian natural gas to pass through its territory on its way to Europe, European consumers will suffer hard and have to pay more for natural gas.
Ukraine has already stated several times that it will not extend the current gas transit contract, which expires on December 31, 2024. The latest statement came earlier this week, when Ukrainian President Volodymyr Zelensky said that “no one will extend the agreement with Russia.”
However, Ukraine would consider requests from European companies for gas shipments from other sources, the Ukrainian president added.
Kremlin spokesman Dmitry Peskov said at a regular press conference on Wednesday that if Ukraine decides not to extend the gas transit contract, it would “seriously damage the interests of European consumers who want to buy more guaranteed and affordable Russian gas, which is cheaper than gas from other sources, in particular the United States.”
Commenting on President Zelensky's comments that Ukraine would not extend its gas transit contract with Russia, Peskov said, “European consumers will have to pay more for gas and as a result European industry will become less competitive,” according to Russian news agency Interfax.
Russia is considering alternative routes for gas shipments to Europe, including plans to set up a base in Turkey, Foreign Minister Dmitry Peskov said today, adding that “work in this regard is underway.”
Russia has seen a sharp decline in its natural gas exports to Europe since the invasion of Ukraine, with Gazprom's natural gas supplies falling sharply as Russian pipeline gas exports to almost all European countries were halted.
Before the war in Ukraine began, Russia was Europe's largest supplier of gas, providing about a third of the gas it supplied.
Norway has now replaced Russia as Europe's largest gas supplier.
Article by Charles Kennedy of Oilprice.com
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