Media: Slovakia, Germany seek resumption of Russian gas flow amid rising energy prices

Some industries, particularly in Germany, are hoping for the return of Russian gas to reduce energy costs, similarly, countries like Slovakia, which relied on Soviet-era gas supplies, are pushing for the resumption of Russian pipeline gas.

Russian President Vladimir Putin appears confident that if a US-brokered agreement to end the war in Ukraine is reached, natural gas pipeline flows to Europe could be significantly increased—raising questions about whether Europe is willing to reconsider its position and renew this relationship, Caliber.Az reports via foreign media.

“If, say, the US and Russia agree on cooperation in the energy sector, then a gas pipeline for Europe could be ensured,” Putin said during a March 13 briefing in Moscow. “And this will benefit Europe, as it will receive cheap Russian gas.” While some traders speculate that Russian gas supply could rise, many expect limited volumes to return, if any, due to the European Union’s efforts to reduce dependence on Russian energy by 2027.

Increasing pipeline flows presents complex challenges. The simplest solution might involve resuming gas transit through Ukraine, which ceased in December, but these volumes accounted for less than 5 per cent of Europe's total gas demand. Despite this, the appeal of "cheap" gas could convince some European countries to look past geopolitical tensions. While the EU has made significant strides in reducing reliance on Russian gas after over five decades of dependence, the pressure of high energy costs may test the EU’s resolve. Another pressing concern is gas storage, with the recent cold winter and low wind power generation depleting reserves quickly. 

The continent faces a challenging and costly refilling process, and any meaningful increase in gas supply would be welcome relief. The possibility of improved US-Russia relations is crucial. Russian and European officials suggest the US is exploring ways to cooperate with Gazprom on global energy projects. Gazprom is particularly interested in restarting the Nord Stream pipelines that run between Russia and Germany. Gazprom holds a majority stake in Nord Stream and fully owns Nord Stream 2, though its Swiss-based operator is undergoing insolvency proceedings. 

An American investor, Stephen Lynch, is reportedly interested in acquiring the operator, should it be declared bankrupt, which would give the US a stake in the project. Moreover, lifting sanctions on Russia could allow for more liquefied natural gas (LNG) exports, with Europe importing record amounts of Russian LNG last year. However, Russia’s Arctic LNG 2 project has faced setbacks, as sanctions restrict access to the necessary ice-class tankers. Before the Ukraine conflict, Russia was Europe's top gas supplier, providing around 40 per cent of its total demand through multiple pipelines. This share dropped to 14 per cent by 2024. 

Although many European countries, including the UK, Germany, and the Baltic states, ceased importing Russian gas in 2022, some still receive Russian gas via third-party countries that import LNG from Russia. While Russia continues to supply LNG to Europe, pipeline flows are a mere fraction of what they once were, with only one operational route left: the TurkStream pipeline, which supplies Hungary, Serbia, and Slovakia. The European Commission’s plans to phase out Russian energy imports by 2027 remain in progress, despite delays in the publication of the document. 

Many European countries have also severed ties with Gazprom, with some large customers, like German utility Uniper and Austrian energy firm OMV, terminating long-term contracts. Infrastructure challenges also hinder any potential revival of gas flows. The Nord Stream pipelines were damaged by sabotage in 2022, and although one pipeline remains intact, it has not been certified for use by Germany. Similarly, while there is a possibility of reviving the Yamal-Europe pipeline through Poland, Poland remains firmly opposed to receiving Russian gas. 

There is also the potential for restoring gas transit through Ukraine, though this depends on successful negotiations between Gazprom and Ukraine’s Naftogaz—an ongoing issue complicated by political and military tensions. Additionally, there are concerns about the condition of gas infrastructure due to the ongoing conflict, especially in Russia’s Kursk region, which houses critical gas transit points.

By Naila Huseynova