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Azerbaijan may export gas via Ukraine after Russia deal ends - Azerbaijani President

Azerbaijan may export gas via Ukraine after Russia deal ends - Azerbaijani President Azerbaijan is ready to supply gas through Ukraine to the EU (photo: Getty Images)

Ukraine and the European Union have appealed to Azerbaijan to assist in negotiating a new natural gas supply agreement following the expiration of the current transit contract with Russia, announces Azerbaijani President Ilham Aliyev.

According to him, negotiations with the Ukrainian authorities, the EU, and Russia are ongoing, and all parties seem interested in continuing the supplies.

"We will help if we can. I think it’s possible to prolong this deal," Aliyev said at a conference Saturday in the town of Shusha.

He noted that if Russian gas supplies through Ukraine, Austria, and Slovakia were to stop, they would face serious problems, as they would have to pay hundreds of millions more to procure gas from other sources.

In contrast, Aliyev added, Azerbaijan is trying to be cautious as it has been falsely accused of re-exporting Russian gas in the past.

The President stated that gas production in his country is expected to increase due to new and ongoing projects in the Caspian Sea.

Gas transit through Ukraine to Europe

In 2022, Azerbaijan signed a memorandum of understanding with the European Commission to double its gas exports to Europe to 20 billion cubic meters by 2027. According to Aliyev, the country is moving toward this goal.

This year, exports to Europe are expected to increase to nearly 13 billion cubic meters, up from 11.8 billion cubic meters in 2023 and 8 billion cubic meters in 2021.

Supplies will be delivered via the Southern Gas Corridor, which connects Azerbaijan to Europe through Georgia and Turkiye.

The current agreement for the transit of Russian gas through Ukraine is set to expire at the end of 2024. However, due to the ongoing war, the transit could potentially stop entirely.

In early July, President Volodymyr Zelenskyy stated that Ukraine is negotiating gas supplies from Azerbaijan to EU countries. The deal to replace Russian gas with Azerbaijani supplies is one of the options being discussed.

Since Russia invaded Ukraine, the EU has been trying to reduce its reliance on Russian gas, though some European countries continue to receive it through pipelines crossing Ukraine.

In May, Russia once again became the top gas supplier to European countries, surpassing the US for the first time in nearly two years.

For details on whether Ukraine will extend its gas contract with Russia and the potential implications if it does not, read the full article by RBC-Ukraine.