Europe, Azerbaijan not close to deal on gas route via Ukraine, Slovakia's SPP says

European firms are not close to an agreement with Azerbaijan to replace Russian gas flows through Ukraine, Slovakian state-owned gas importer SPP told Reuters on Nov. 1, contradicting earlier media reports that said a deal was at hand.

Ukraine currently transits Russian gas to the European Union as part of a deal signed in 2019, which is set to expire in December 2024. Europe and Ukraine have been in talks with Azerbaijan to replace Russia as a supplier.

Bloomberg reported on Oct. 1 that energy companies from Hungary and Slovakia were nearing a contract for up to 12-14 billion cubic meters of gas from Azerbaijan per year, citing people familiar with the negotiations.

Slovak energy supplier SPP dismissed these reports in a statement to Reuters.

"We regularly discuss the topic with our partners, but the information about the upcoming conclusion of a gas supply contract with the participation of SPP is not true," SPP's statement read.

Slovakia is among the countries most reliant on Russian energy supplies. While Moscow cut much of its pipeline gas transit to Europe in 2022, Slovakia, Austria, and Hungary remain heavily dependent on Russian imports.

Azerbaijani President Ilham Aliyev said on Sept. 6 that negotiations are underway with the EU, Moscow, and Kyiv to transport Azeri gas after Ukraine stops transiting Russian gas. Gas supplies from Azerbaijan would have to first transit through southern Russia before reaching Ukraine.

Europe is "fully committed" to phasing out Russian gas and is "ready to live without this Russian gas coming from the Ukrainian transit route," EU Energy Commissioner Kadri Simson said on Sept. 11.

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