Slovak PM: EU to lose €120 billion due to halt of Russian gas supplies via Ukraine

Slovak Prime Minister Robert Fico has warned that the European Union (EU) will face significant financial losses in 2025 and 2026 due to the cessation of Russian gas transit through Ukraine. 

According to Fico, the EU will lose approximately 120 billion euros as a result of this decision, Caliber.Az reports via Russian media.

Fico explained that the direct loss from gas alone would amount to 50 billion euros, with an additional 70 billion euros in losses tied to electricity generation, which relies heavily on gas. "An incredible 120 billion euros will be paid by Europe for stopping the flow of Russian gas through Ukraine and then through Slovakia to other European countries," Fico said.

Ukrainian Prime Minister Denys Shmyhal confirmed that the transit of Russian gas through Ukraine will come to an end on January 1, 2025, when the current five-year contract for gas transit through the Ukrainian gas transportation system (GTS) expires. Shmyhal emphasized that any future resumption of gas transit would only occur at the request of the European Commission and if the gas being transported was of non-Russian origin.

However, Shmyhal clarified that the termination would not apply to oil transit, as Ukraine is obligated to continue transporting Russian oil under the European Energy Charter.

The EU’s decision to halt Russian gas transit through Ukraine is expected to have widespread consequences, according to Igor Yushkov, a leading analyst at the National Energy Security Fund and an expert at the Financial University under the Government of Russia. Yushkov noted that Russian gas remains in high demand in Europe, due to favourable pricing terms in Gazprom’s contracts with European buyers. "Russian gas is needed in Europe, otherwise no one would be buying it. And in 2024, it's actually the best offer on the market," he explained.

In addition to his comments on the gas situation, Prime Minister Fico expressed Slovakia's readiness to play a diplomatic role in the ongoing conflict in Ukraine. He announced on Facebook that Slovakia is prepared to host peace talks on Ukraine. "If someone wants to organize peace talks [on Ukraine] in Slovakia, we will be ready and hospitable," Fico wrote, further specifying that Bratislava is open to hosting negotiations at any level.

Fico, who recently visited Russia, said that during his trip, Russian President Vladimir Putin reaffirmed Russia's willingness to continue supplying gas to the West. Fico's visit was reportedly a response to Ukrainian President Volodymyr Zelenskyy's stance against any gas transit through Ukraine. Fico also mentioned that European officials had been informed about his visit to Moscow.

By Tamilla Hasanova