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The Kremlin warned on Wednesday that European consumers could feel the consequences of higher gas prices if Ukraine does not agree to extend its Russian gas transit contract, which is crucial for supplying Europe and is due to expire on December 31.
Ukraine has repeatedly said it has no plans to renew its contract with Russia, further fuelling concerns that fighting in the Kursk region, home to a key transit point, could further disrupt gas flows.
Kremlin spokesman Dmitry Peskov said Russia was considering alternative gas delivery routes, including a planned gas hub in Turkey. “There are alternative routes and plans to build a hub in Turkey. The process is ongoing. But, of course, such a decision on the Ukrainian side would cause serious damage to the interests of European consumers who still want to buy more affordable Russian product gas,” Peskov said.
He also warned that if Europe lost access to Russian gas, it would have to pay more for alternative energy sources, such as liquefied natural gas (LNG) from the United States.
The plan to build a gas hub in Turkey is not a new idea. Russia proposed the project as early as 2022 to make up for the loss of gas sales to Europe. Turkey has long been interested in becoming an energy broker for countries facing energy shortages.
Gas transit contracts through Ukraine brought about 15 billion cubic meters of Russian gas last year, a large portion of the EU’s total gas consumption (295 billion cubic meters). However, most European gas consumers are already preparing for the possibility of a supply cut when the contract expires at the end of this year.
Although Gazprom is considering the possibility of shifting some deliveries to other routes, such as the Turkish Stream via Bulgaria, Serbia or Hungary, the capacity on these routes is limited, which could further complicate the situation for European consumers in the coming winter.
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