Kadri Simson to FT: Azerbaijani gas to EU plan doesn't make sense
Estonia's outgoing European Commissioner Kadri Simson has warned against replacing Russian natural gas with supplies from Azerbaijan, saying that such a "swap" would be nothing of the kind, British daily the Financial Times (FT) reported.
In reality, re-exported Russian flows from state energy giant Gazprom would continue, just that the gas supplied would be denoted as Azerbaijani.
Simson, who holds the energy portfolio, told the FT that Europe can survive the third full winter since the start of the Russian invasion of Ukraine without Russian gas in any case, adding "we believe we will get through this winter and we will be able to refill our gas storage next spring."
European energy companies have been negotiating with Ukraine and Azerbaijan to ensure that gas continues flowing to central Europe after the contract with expires on December 31.
Simson explained that the plan would involve Azerbaijan delivering gas to Ukraine's border, which would then be sent to Europe through a swap with Russia.
However, this would be, she said, "totally unnecessary" since European companies could directly purchase Russian gas at the Ukrainian border in any case, if they wished.
Hungary and Slovakia, which have resisted EU efforts to reduce reliance on Russian gas after the invasion of Ukraine in 2022, would be the main beneficiaries of such a set-up, she added.
Slovak officials, including deputy economic minister Vladimir Šimonak, have acknowledged that there is no "effective guarantee" about the origin of gas ostensibly coming from Azerbaijan, and the EU is unable to monitor effectively if it is re-exported Russian gas anyway.
Simson noted that Ukraine earns US$1 billion annually in gas transit fees, while Russia could lose US$6.5 billion if it loses the transit route.
The future of talks with Azerbaijan remains uncertain. Since the country does not share a border with Ukraine, gas of Azeri origin would have to pass through southern Russia in any case.
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Editor: Andrew Whyte