Refusal from Russian gas will cost the EU — European Commissioner for Energy makes a loud statement

"We thought about how the European Union can survive without Russian gas,” Simson said.

“It will cost us significantly, but we are ready for it."

Russia has already reduced the supply of gas to Europe and this was only its decision as the first sanctions packages did not concern any restrictions on Russian gas.

"The EU still receives Russian gas through Türkiye and Ukraine,” she said.

“The contracts will expire this December, and we are not asking our partners to hold negotiations on this issue," the European commissioner added, noting that the EU should think about alternative ways of supplying gas, in particular, to countries such as Slovakia and Austria.

Simson also mentioned the possibility for Russia to supply liquefied gas to Europe amid European Energy Ministers decisions to limit Russian ships access to LNG terminals.

The agreement on Russian gas transit to Europe was signed by Ukraine and Gazprom at the end of 2019. It is valid until December 31, 2024 according to the "pump or pay" formula. Gazprom is obliged to pay for the pumping of at least 40 billion cubic meters through Ukraine's gas transportation system (GTS) in 2021-2024, regardless of the actual gas volumes pumped.

Russian gas transit through Ukraine will be stopped, and EU member states that still consume gas from Russia should prepare for changes in the market and start reducing consumption. Simson announced on Dec. 20, 2023.

Should some supplies continue beyond 2024, it is unlikely that the current transit agreement will be extended on similar terms due to a lack of political support, Center on Global Energy Policy report said.

Russian natural gas transit through Ukraine’s GTS decreased by 28.4% (by 5 billion 812.6 million cubic meters) compared to 2022 — to 14 billion 646.6 million cubic meters in 2023, Ukraine’s GTS Operator data showed.

Gazprom had already received a trillion rubles of net loss, it was reported in January 2024.