Germany is set to vote on December 20 to eliminate a gas transit fee that has been a financial burden for several Central European countries, particularly Austria, the Czech Republic, Hungary, and Slovakia.
This fee, introduced in 2022, was meant to help cover the rising costs of the European energy crisis sparked by Russia’s incursion into Ukraine and the subsequent EU sanctions on Russian energy.
Although Germany has struggled to pass significant legislation recently, opposition leader Friedrich Merz, head of the center-right CDU party, has expressed willingness to support the government in scrapping the fee to preserve strong ties with neighboring countries, especially Austria and the Czech Republic. Both countries are also governed by European People’s Party (EPP) members, to which Merz’s CDU belongs.
The gas transit fee was levied on neighboring countries that rely on German gas reserves, adding an extra financial strain during an already challenging energy crisis. These countries—Austria, the Czech Republic, Hungary, and Slovakia—have lobbied for its removal, arguing that the fee undermines the EU’s single market, which allows for the free movement of goods and services.
While the EU has imposed sanctions on a range of Russian energy imports, it has avoided sanctions on Russian gas, partly due to Central European countries’ heavy reliance on it. Since the outbreak of the war in Ukraine, these nations have been striving to reduce their dependence on Russian energy, but the German transit fee has been a significant hurdle.
In a joint letter, Bratislava, Prague, and Vienna emphasized the urgency of scrapping the fee, especially as the Russian-Ukrainian gas transit deal is set to expire at the end of the year. The letter described the fee as an “artificial increase” that hampers efforts to diversify away from Russian gas. “It is imperative to remove all the barriers standing in the way of our diversification efforts,” the governments said.
The end of the gas transit deal between Ukraine and Russia, effective January 2025, has added further pressure. Ukrainian Prime Minister Denys Shmyhal confirmed that the agreement would not be extended, signaling a significant shift in energy dynamics for the region. Slovakia, which has a long-term deal with Russia’s Gazprom, sees this as an EU-wide issue, not just a matter for its own borders. Meanwhile, Hungary, which has secured alternative gas supplies through the Turkish Stream pipeline, says it won’t be affected by the upcoming expiration of the deal.
In light of these developments, Germany’s vote on the gas transit fee could mark a critical moment in regional energy diplomacy, with the potential to ease tensions and help Central Europe move away from Russian gas dependency.
