EU warns of winter energy price hike as Russia-Ukraine gas deal ends

By Victor Jack | 03/04/2024 06:56 AM EST

An internal document obtained by POLITICO revealed the EU is meeting with countries to prepare for “worst case” scenarios.

BRUSSELS — The EU risks higher energy prices this winter after a deal keeping Russian gas flowing to the bloc via Ukraine expires, Brussels officials privately warned countries in an internal document obtained by POLITICO.

Moscow and Kyiv inked a five-year pipeline transit agreement in 2019 that has continued to supply gas to EU countries despite two years of war raging in Ukraine.

Now, with the contract ending on Dec. 31, Ukraine has said it will not seek to renew the pact. EU energy chief Kadri Simson agreed, arguing the EU executive has “no interest” in pushing to revive the agreement.


That means the EU will soon lose about 5 percent of its total gas imports, mostly to central and southeastern Europe, according to the internal document, prepared by the European Commission, the EU’s executive. If that loss is paired with a prolonged cold snap, the memo adds, it could create a “worst case” scenario for countries relying on the gas transits through Ukraine.