Putin Acknowledges Challenges in Gas Transit through Ukraine

Russian President Vladimir Putin has acknowledged the difficulties in establishing a new contract for natural gas transportation through Ukraine. During a news conference near St. Petersburg on Thursday, he emphasized that finalizing such a contract in just three to four days is impractical.

Putin explored various proposals involving Hungary, Slovakia, Turkey, or Azerbaijan managing the gas flow through Ukraine. However, these proposals carry significant hurdles, as Gazprom PJSC, Russia's majority state-owned energy corporation, has existing long-term contracts that are not easily modified.

Ukrainian President Volodymyr Zelenskiy stated earlier this month that Ukraine would not allow the transit of Russian-origin gas through its territory as long as the current conflict persists, unless there are assurances that the Kremlin won't gain financially from it.

The existing gas transit contract between Russia and Ukraine is set to expire this month. Countries like Slovakia continue to rely heavily on Gazprom to meet their natural gas needs, even as many European nations are gradually reducing their dependence on Russian piped gas.

In another note, Putin highlighted a lawsuit by Ukraine's Naftogaz that claims Gazprom has not adequately compensated for transit services, which complicates reaching a quick agreement. This claim was filed in Switzerland in 2022.

Putin indicated that Russia might consider alternative routes and is ready to start gas supply to Europe through Poland immediately, contingent on approval from the Warsaw government. He also suggested that Ukraine should retract its court claim to ease negotiations.

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