Slovakia threatens cuts to support for Ukrainian refugees amid gas supply row

Slovakia's Prime Minister, Robert Fico, has signalled potential cuts to financial support for over 130,000 Ukrainian refugees in the country, as tensions escalate with Ukraine over halted Russian gas supplies.

The dispute stems from Ukraine’s decision on 1 January to shut down a decades-old pipeline supplying Russian natural gas to Central Europe. Slovakia, previously the primary entry point for the pipeline, now faces an estimated €500 million (£415 million; $518 million) loss in transit fees, Caliber.Az reports via foreign media.

Prime Minister Fico, who made a controversial visit to Moscow in December to meet Russian President Vladimir Putin, labelled Ukraine's move as "sabotage." In response, he announced plans to propose a halt to electricity exports to Ukraine and a significant reduction in financial aid for Ukrainian refugees in Slovakia.

There was no risk of gas shortages in Slovakia, as it had secured alternative arrangements, Fico assured. However, he stressed that Ukraine’s decision would severely impact Slovakia's public finances. "The only alternative for a sovereign Slovakia is renewal of transit or demanding compensation mechanisms that will replace the loss in public finances," he stated.

According to the UN Refugee Agency (UNHCR), as of last month, Slovakia hosts 130,530 of the 6.8 million Ukrainian refugees displaced globally.

Fico’s stance has drawn sharp criticism from Ukrainian President Volodymyr Zelenskyy, who accused him of aiding Moscow. "Fico is dragging Slovakia into Russia's attempts to cause more suffering for Ukrainians," Zelenskyy said, adding that the Slovak leader’s actions "fund the war and weaken Ukraine."

Poland, a key ally of Ukraine, has offered to step in should Slovakia cut electricity exports, which are vital to Ukraine as it continues to endure attacks on its power infrastructure by Russian forces. Poland also praised Ukraine’s decision to shut the gas pipeline, describing it as "another victory" against Moscow.

The European Commission has downplayed the potential fallout, asserting that most EU states are prepared for the change in gas transit. However, Moldova, which is not an EU member, is already experiencing shortages.

Meanwhile, Russia continues to supply gas to Hungary, Türkiye, and Serbia through the TurkStream pipeline, which crosses the Black Sea.

The ongoing dispute underscores the geopolitical and humanitarian challenges faced by Central and Eastern Europe as the repercussions of Russia's invasion of Ukraine ripple through the region.

By Vugar Khalilov