Kyiv will not enter into negotiations with Moscow to renew the gas transit contract to Europe expiring in 2024, said Ukrainian gas transit system (GTS) operator official, Andriy Prokofiev.
“Ukraine will not offer any capacities for auctions,” Prokofiev stated at the Flame conference, signaling a firm stance against continuing the existing arrangement.
The European model for booking gas transit capacity involves its distribution through auctions rather than long-term contracts. According to some booking platforms, the next booking auction for 2025 in the European industry calendar is scheduled for July 1. In addition, capacity can be offered at quarterly, monthly and daily auctions.
Ukraine and Gazprom signed an agreement on the transit of Russian gas to Europe in late 2019. It is valid until Dec. 31, 2024, under the “use it or pay” formula. Gazprom is obliged to pay for the transportation through the Ukrainian GTS not less than 40 billion cubic meters in the years 2021-2024, regardless of the actual volumes of gas delivered.
On Dec. 20, 2023, the European Commissioner for Energy Kadri Simson said that the EU was taking proactive measures in anticipation of the cessation of Russian gas transit through Ukraine and urged member countries that still depend on Russian gas to brace for market changes and commence reductions in consumption volumes.
In 2023, the Russian natural gas transit through the Ukrainian GTS decreased by 28.4% (by 5 billion 812.6 million cubic meters) compared to 2022, to 14 billion 646.6 million cubic meters, according to the data of the Ukrainian GTS operator.