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Politico: Slovakia-Ukraine dispute is about making money from cheap energy

Kremlin-friendly EU leaders try to strike deal to keep Russian fuel flowing across the continent

Dec 22, 2024 05:13 48

Politico: Slovakia-Ukraine dispute is about making money from cheap energy  - 1

The escalating diplomatic dispute between Slovakia and Ukraine is more about making money from cheap energy than anything else, a senior Ukrainian official told Politico, as Kremlin-friendly EU leaders try to strike a deal to keep Russian fuel flowing across the continent, BTA reported.

Kiev on Thursday ruled out continuing to allow Moscow to supply natural gas through its pipeline network to countries like Slovakia and Hungary after a long-term transit agreement with Russian state energy giant Gazprom expires at the end of the year.

Slovakia – which has a leading role in seeking a workaround - it earns about $500 million a year from trading Russian gas, while opposing Ukraine's foreign policy goals, noted “Politico“, citing a Ukrainian official close to President Volodymyr Zelensky.

“We have been pushing for sanctions against the Russian nuclear industry”, said the official, who requested anonymity to speak candidly about the sensitive dispute. Slovak Prime Minister Robert “Fico is among those blocking these sanctions… and is one of the key figures blocking [Ukraine’s] bid to join NATO.”

Fico, who along with Hungarian Prime Minister Viktor Orban has advocated closer relations with Moscow since Russian President Vladimir Putin’s all-out invasion of Ukraine began, accused Zelensky on Thursday of offering him “500 million euros in Russian assets” to support Kiev’s bid to join the military alliance. "Of course, I said 'never,'" the populist prime minister replied, Politico reported.

Responding to the allegations, the Ukrainian official said Zelensky's words were taken out of context and stressed that Slovakia should find alternative sources of gas, as other EU countries are doing.

"Then Zelensky offered him to reach an agreement with our partners and said that we would compensate Fico for his losses, and in return he would help us with our national security and support us and NATO. Fico said 'no,'" the Ukrainian official said.

According to Politico's Ukrainian source, The Slovak prime minister has rejected proposals for non-Russian gas transit, as profits are clearly a priority for his country's national security.

"You see, for Fico, security is not important at all", the official said.

Fico asked whether Slovakia should lose money just because Ukraine is at war, the official added.

"The president (Zelensky) reacted emotionally because it is immoral to talk like that. He, in turn, said that Ukraine is losing people to Russia, and Fico wants to make money from a fixed rate and help Russia finance the war", the official said.

The agreement that allows Russia"Gazprom" to make supplies through Ukraine expires on January 1, 2025. In an interview with "Politico" The new EU energy commissioner, Dan Jorgensen, said the bloc was “preparing” for this situation and that the looming end of Russian gas supplies “is not surprising.”

However, a group of major central European energy companies this week wrote to European Commission President Ursula von der Leyen urging an extension while Fico and Orban hold meetings with foreign counterparts in an attempt to secure continued supplies.

Orban said yesterday that Budapest was trying to negotiate wording under which Russian gas would be rebranded as Hungarian before crossing the border into Ukraine, similar to the “backdoor” it uses to maintain access to cheap Russian oil.

Zelensky, however, rejected demands to renew the deal while Russia is waging an aggressive war against his country. "It's a bit indecent to talk about money because we're losing people," he said Thursday at a meeting in Brussels.

Putin also said he expected the deal to be completed. It's a blow to Russia's economy. Analysts estimate that Gazprom could lose up to $6.5 billion in revenue - money that the Kremlin ultimately used to finance its invasion of Ukraine.