Russia calls fuel gross sales to Europe ‘difficult’ as take care of Ukraine nears expiry

MOSCOW (Reuters) -Russia stated on Monday that the state of affairs with European nations that purchase its fuel by a transit deal through Ukraine could be very difficult and wishes extra consideration, after talks between President Vladimir Putin and Slovak Prime Minister Robert Fico.

Ukraine has stated it won’t be renewing a five-year transit deal for Russian fuel to Europe, which is because of expire on the finish of the yr, because it doesn’t need to assist Moscow’s navy effort.

The circulation by Ukraine accounts for round half of Russia’s whole pipeline fuel exports to Europe. Slovakia, Italy, Austria and Czech Republic would be the most affected if it ends.

Kremlin-controlled Gazprom (MCX:GAZP) additionally exports fuel to Europe through the TurkStream pipeline on the mattress of the Black Sea.

Kremlin spokesman Dmitry Peskov stated he couldn’t give extra particulars about Sunday’s talks between Putin and Fico, which additionally touched on bilateral relations and the Ukraine battle.

Fico stated on Sunday that Putin had confirmed Russia’s willingness to proceed to provide fuel to Slovakia, though the Slovak chief stated this was “virtually unattainable” as soon as the fuel transit settlement between Russia and Ukraine expires.

It was not clear what potential answer the 2 leaders might need mentioned.

Hungary has additionally been eager to maintain the Ukrainian route, though it’s going to proceed to obtain Russian fuel from the south, through the TurkStream pipeline.

Ukraine’s President Volodymyr Zelenskiy stated final week it could be attainable to resume the transit deal, however solely provided that Russia was not paid for the fuel till after the battle is over, a situation Moscow is unlikely to just accept.

“You heard the assertion from the Ukrainian aspect, and you already know concerning the positions of these European nations that proceed to purchase Russian fuel and that contemplate this mandatory for the traditional operation of their economies,” Peskov instructed reporters.

“Subsequently, there may be now a really difficult state of affairs right here that requires elevated consideration.”

Putin stated final week it was clear there can be no new take care of Kyiv to ship Russian fuel by Ukraine to Europe.