Czech Republic refuses Russian gas but energy independence comes at a high cost

As of January 1, Czechia has completely ceased purchasing Russian gas. Supplies previously delivered via Slovakia have now been replaced with gas from Western Europe, primarily Germany.

However, this transition has cost Czechia a significant amount of money and introduced new challenges. To ensure “energy independence,” the country has invested billions in constructing and leasing LNG terminals in the Netherlands and Germany and has also purchased six gas storage facilities from the German company RWE Gas Storage. These measures entail annual expenses amounting to hundreds of millions of euros, adding further strain to the economy.

The imported LNG—sourced mainly from the US, Africa, and South America—remains more expensive than Russian pipeline gas. Previously, Germany charged a transit fee, raising costs by €2.50 per megawatt-hour. Although these fees were abolished in January, the price of LNG still exceeds that of earlier supplies.

Experts warn that such decisions could negatively impact Czech consumers. Domestic gas storage facilities are only 63% full, which, while sufficient for current needs, leaves little room for flexibility in the event of a crisis. Furthermore, the substantial infrastructure investments place a heavier burden on taxpayers.

The shift away from Russian gas has also been accompanied by increased influence from the US and Qatar on global price-setting. Critics argue that this makes Europe dependent on new suppliers who could impose their own conditions.

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