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Ukraine facing $3bn budget revenue shortfall with Russian gas transit contract in limbo

Ukraine facing $3bn budget revenue shortfall with Russian gas transit contract in limbo
Kiev has missed the opportunity to ink a new profitable gas transit deal with Moscow, Ukrainian politician Victor Medvedchuk said on Friday after another day of fruitless talks between Russia, Ukraine and the EU.

With the current agreement set to expire after December 31, “for the moment, there are hardly any mechanisms that could prevent the loss of transit of Russian gas through Ukraine…” he said.

According to the politician, the creation of a “gas consensus” with the participation of Ukraine, Russia and EU operators was the only “beneficial option” for Kiev.

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He pointed out that since the Ukrainian side didn’t do that, all other results of the talks will be negative for Kiev. “With the termination of gas transit to Europe, we will lose revenue to the state budget in the amount of about $3 billion,” he said.

The deal for Russian gas supplies to Ukraine and those transiting to Europe expires at the end of this year. The final signing of a new agreement has to happen before December 13, when European operators finish filing applications for Russian gas supplies. But talks between the sides have stalled.

Russian President Vladimir Putin and his Ukrainian counterpart Volodymyr Zelensky are expected to discuss problems regarding the negotiation of a new gas deal when they meet other European leaders in Paris on December 9.

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