The attempts of Minister Robert Fico to persuade Ukraine that it should maintain the Russian oil and gas pipeline have failed, as Ukraine has reaffirmed its commitment to ending this agreement with Russia.
According to a joint statement by Ukrainian Prime Minister Denys Schmyhal and Slovak Premier Robert Fico, Ukraine has announced that it will not renew the gas transit agreement between Russia and Ukraine once the current agreement expires.
This decision is in line with Ukraine’s strategic objective to impose sanctions against Russian gas and deny the Kremlin hydrocarbon revenues that are used to fund the ongoing war. Slovakia is one of those countries that is dependent on Russian gas. It is worried about the impact of Ukraine terminating the gas transit agreement.
Shmyhal stressed that their country was committed to fulfilling its obligations under the Association Agreement and Energy Charter Treaty with the European Union, while simultaneously calling for European nations to completely phase out Russian oil imports.
He acknowledged that this could be a problem for countries that are heavily dependent on Russian oil, such as Slovakia or Hungary, but expressed hope for a gradual diversification of supply.
Fico had already expressed his intention, before the meeting, to persuade Ukraine that it should continue to allow Russian oil and gas to transit through its territory to Europe.
In June, Ukraine increased sanctions against Lukoil – one of the largest private oil firms in Russia – and prohibited the company from using Ukrainian soil as a transit route.
This decision had immediate repercussions. Oil shipments to Slovakia, Hungary and other countries ceased on 18 July.
Transpetrol, Slovakia’s oil supplier, confirmed that other Russian suppliers are not affected by the suspension of Lukoil deliveries.
Both Hungary and Slovakia appealed the European Commission claiming that Ukraine’s decisions violated its Association Agreement with EU. The Financial Times reports, however, that the Commission rejected their request for intervention.
The dispute has escalated into threats of retaliation. Slovak President Peter Pellegrini warned against “undefined countermeasures”, while Hungary threatened to block an important EU aid package for Ukraine if the embargo is not lifted.
The Lukoil ban in Ukraine threatens Hungary’s cheap Russian crude oil lifeline
* European Commission delays Hungary-Slovakia’s request over Ukraine Lukoil sanctions
* Hungary and Slovakia’s request for EU discussions on Ukraine’s Lukoil Transit Ban turned down
* Reuters: US sanctions forced Lukoil refinery production to be cut by 40%
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