Slovakia's SPP: No gas deal with Azerbaijan on horizon for Europe

European companies are still far from finalizing an agreement to replace Russian gas imports via Ukraine with supplies from Azerbaijan.

According to Reuters, Slovak state-owned gas buyer SPP has refuted media claims suggesting that a deal is imminent, per Caliber.Az.

“We regularly discuss this topic with our partners, but information about an upcoming gas supply contract involving SPP is not true,” the company stated.

Sources within Azerbaijani energy company SOCAR also played down the report. On October 31, Bloomberg cited informed sources indicating that companies from Hungary and Slovakia were close to signing a contract for the supply of 12-14 billion cubic meters of gas annually from Azerbaijan.

SPP has been proactive in maintaining transit routes despite the challenges posed by Russia's war in Ukraine, as alternative routes tend to be more expensive.

Kremlin spokesman Dmitry Peskov expressed scepticism about the deal during a conference call with reporters on November 1, when asked about it.

This year, approximately 14 billion cubic meters of Russian gas is expected to be exported through Ukraine, representing only a fraction of pre-war levels. The existing five-year agreement between Moscow and Kyiv for the export of Russian gas through Ukraine to Europe is set to expire at the end of the year, prompting the EU to explore alternative gas sources, including from Azerbaijan, while also negotiating to maintain the existing transit route.

Despite the ongoing conflict, Russia has stated its willingness to continue supplying gas through Ukraine, while Kyiv has refused to negotiate with Moscow regarding gas transit.

By Tamilla Hasanova