Ukraine says not to extend gas transit contract with Russia after 2024

KIEV, Ukraine

Ukraine is not planning to extend the natural gas transit contract with Russia after 2024, the Interfax-Ukraine news agency reported Thursday, citing the government press service.

Russian gas continues to flow to the European Union through Ukraine under the current deal. Some nations still rely on this fuel, while most of northwest Europe has replaced flows from Moscow with cargoes of liquefied natural gas. 

"The position of the Ukrainian side is clear: the transportation contract ends at the end of this year, we are not going to negotiate with the Russians and extend the contract," the press service said.

However, Ukraine can negotiate with European Union countries about using its gas transportation system, it said.

Ukraine's state-run energy company Naftogaz and Russia's gas giant Gazprom signed a gas transportation agreement in December 2019.

The contract envisages that Ukraine would transit 40 billion cubic meters of Russian gas per year during the 2021-2024 period.

Last year, Russia's gas transit via Ukraine was down by 28.4 percent to 14.646 million cubic meters. 

The gas deal could become an important negotiating point if the war continues to the end of the year.

Europe still receives Russian gas via Ukraine and through Turkey. The region has been successful in replacing lost flows from Nord Stream. While stopping short of sanctions, the EU has been clear that the bloc should seek to reduce its dependence on Moscow for energy.