Central European energy companies have urged EU chief Ursula von der Leyen to help extend a gas transit deal with Russia, fearing it could destabilize energy supplies if the agreement ends.
In a letter sent to the European Commission president, gas firms from Hungary, Slovakia, Austria, and Italy expressed concern that discontinuing the deal would spike gas prices and leave European consumers struggling with higher costs. The deal, originally signed in 2019 between Ukraine and Moscow, allows Russian gas to flow through Ukraine to Europe, a vital supply route for these countries.
Slovakia and Hungary, led by Robert Fico and Viktor Orbán, respectively, have been pressing for months to renew the agreement, warning that its expiration could compromise energy security during winter and send prices soaring. Slovakia’s state-owned energy supplier, SPP, estimated that a cutoff would cost the country “more than 220 million euros” to replace the lost Russian gas. Additionally, the Federation of Austrian Industries and Italy’s Gas Intensive Società Consortile, representing gas-heavy industries, signed the letter, signaling broad concern over potential disruptions.
Slovakia’s Economy Minister, Denisa Sakova, stated the country hopes to secure an extension by the end of the year, but it depends on cooperation from its partners. Following talks with Ukrainian officials, Slovak Prime Minister Robert Fico mentioned that discussions were ongoing and intense. However, Ukraine’s Denys Shmyhal made it clear that an extension was possible only if the deal excluded Russian gas flows, and if the European Commission formally addressed the issue with Kyiv.
Hungary’s Energy Minister, Csaba Lantos, also emphasized the importance of the Commission’s support for a deal extension. Yet, the EU has insisted that if the deal ends, there will be no serious consequences for the bloc, dismissing any need for mediation.
While the Central European governments remain adamant about the deal’s importance, experts remain skeptical about the impact. Sergiy Makogon, a Ukrainian energy expert, argued that Slovakia would not face a dramatic gas shortage if the deal expires, but would lose significant revenue from reselling and transiting Russian gas. The request to extend the deal, according to Makogon, is “purely economical” for Slovakia.
Interestingly, early drafts of the letter included energy companies from the Czech Republic, Germany, and Ukraine, but these were later removed. Moldova, however, would be heavily impacted by the end of the deal. The breakaway region of Transnistria, which relies on subsidized Russian gas flowing through Ukraine, would be left without supply, forcing Moldova to purchase more expensive gas from the EU market, increasing the financial burden on the country.
As the EU continues to enforce sanctions against Russia and move towards energy independence, it remains to be seen how long these countries can continue to rely on Russian energy without facing dire economic consequences.
