Ukraine could cost Slovakia $521mln if Russian gas transit to EU stops
3 Min Read
Ukraine's decision to halt gas transits through its territory could majorly impact revenues generated by other European countries, particularly Slovakia.
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Slovak Prime Minister Robert Fico stands waiting the meeting with Russian President Vladimir Putin at the Kremlin in Moscow, Russia, Sunday, Dec. 22, 2024. (AP)
Slovakia will lose up to 500 million euros (521 million dollars) per year if the transit of gas through the country to other European Union states is halted, Prime Minister Robert Fico stated on Saturday.
Slovakia expects its domestic gas needs to be met, while annual income generated from transiting Russian gas to the West should hit 400-500 million euros in 2025. However, if Ukrainian President Volodymyr Zelensky stops the transit following January 1, Slovakia would immediately lose this revenue.
Fico further stated that during an EU summit in Brussels, Zelensky proposed compensating Slovakia with the same amount, extracted from frozen Russian assets, if Slovakia supports its NATO bid - a proposition immediately rejected.
He stated that not only he, but also other countries with greater influence over the decision to admit new NATO members, oppose Ukraine's membership.
Who are the beneficiaries?
The Slovak prime minister also speculated that the United States would benefit most from stopping gas supplies from Russia through Ukraine to Europe, asking "What is behind this absurd decision by President Zelensky? Just look at which countries benefit most from reducing the European Union's dependence on gas from Russia. The answer is very simple: first and foremost, it is the United States."
He recalled that US President-elect Donald Trump has already threatened EU countries by introducing tariffs, unless they start purchasing more American oil and gas.
On the other hand, Zelensky accused Fico on Monday of attempting to assist President Vladimir Putin by continuing to import gas from Russia.
Zelensky indicated that European Union leaders had observed Fico, who visited Moscow on Sunday, and his resistance to decreasing energy reliance on Russia, suggesting that this implies "he wants to help Putin earn money to fund the war and weaken Europe."
He expressed on social media platform X that "we believe that such assistance to Putin is immoral."
The current agreement for Russian gas transit through Ukraine to Europe expires at the end of 2024, and Kiev has consistently indicated it will not renew the deal. Last week, Zelensky also ruled out allowing Russian gas transit through Ukrainian territory after December 31, even if third parties purchase it.
