Kremlin says Europe will pay more unless Ukraine extends gas transit deal

Kremlin says Europe will pay more unless Ukraine extends gas transit deal

MOSCOW, Aug 28 (Reuters) – European consumers will face higher prices unless Kyiv agrees to extend a deal on Russian gas transit via Ukraine once it expires on Dec. 31, the Kremlin said on Wednesday.

Ukraine has repeatedly said it has no plans for a new gas transit deal with Russia amid the ongoing military conflict.

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Kremlin spokesman Dmitry Peskov told reporters on a daily conference call that if Kyiv did not extend the deal, Russia could find alternative routes, such as the planned Turkish gas hub.

“There are (other) routes, but, of course, such decisions by the Ukrainian side will cause serious damage to the interests of European consumers, those who still want to buy more guaranteed, more affordable… Russian gas,” Peskov said.

He also said that Europe will have to pay more for gas from other sellers, including liquefied natural gas supplied by the United States.

Most recipients of Russian gas via Ukraine have said they have been preparing for flows to cease at the end of this year when the transit deal between Ukraine and Russia expires, given that Ukraine has said it does not want to renew it.

Another option is for Gazprom to supply some of the gas via another route, for example via TurkStream, Bulgaria, Serbia or Hungary. However, capacity via these routes is limited.

The EU and Ukraine have also asked Azerbaijan to facilitate discussions with Russia regarding the gas transit deal.

(Reporting by Gleb Stolyarov; writing by Vladimir Soldatkin; Editing by Mark Trevelyan and Barbara Lewis)