Ukraine proposes new gas supply scheme to Europe – RBC-Ukraine

Ukraine has proposed a new gas supply scheme to Azerbaijan and Slovakia, involving the use of Ukrainian underground storage facilities, according to a report by RBC-Ukraine on Thursday, citing its own sources. Official comments from the parties involved have not been provided.

The concept involves transporting gas through Ukrainian underground storage facilities, which would legally classify the supply as re-export rather than transit.

If Azerbaijan agrees to the proposal, it could sell the gas on the market or through contracts, depending on market conditions and the needs of European Union countries.

If Slovakia accepts the proposal, it could purchase gas at Ukraine's eastern border or at the entry point on the Azerbaijan-Russia border, store it in Ukrainian facilities, and then either consume it or sell it to third countries.

The scheme is currently at the conceptual stage, and final responses from Azerbaijan and Slovakia are pending.

However, Russian involvement in the supply chain is inevitable, and Russia has historically not allowed gas transit through its territory for countries like Azerbaijan, Kazakhstan, or Turkmenistan. Additionally, negotiations with Russia would be necessary to ensure that Ukrainian gas transportation infrastructure is not targeted by attacks.

A high-ranking official, speaking off the record with RBC-Ukraine, predicted that the likelihood of continuing any gas transportation through Ukraine to the EU from 2025 is practically zero.

In the event of a halt in transit, the price of gas in Ukraine could increase by 3%, according to a forecast by former head of Ukraine's Gas Transmission System Operator, Serhiy Makohon, in an interview with LIGA.net.

On October 7, Ukrainian Prime Minister Denys Shmyhal, during a meeting with his Slovak counterpart Robert Fico, ruled out the possibility of extending the transit agreement with Russia.