Ukraine Explores Azeri Gas Transit to Europe

In a strategic move to bolster energy security for its Western neighbors, Ukraine is actively negotiating to facilitate the transit of natural gas from Azerbaijan to the European Union. Ukrainian President Volodymyr Zelensky disclosed these discussions during an interview with Bloomberg TV, highlighting the country’s efforts to maintain its crucial role as a transit nation while seeking alternatives to Russian gas supplies.

"Alternative steps are being considered now on how we can use the pipeline with another gas supplier, another country. Negotiations are under way," Zelensky stated, emphasizing Ukraine’s reluctance to extend its gas transit contract with Russia.

Ukrainian government officials are engaged in talks to potentially transit Azerbaijani gas to the EU, a move seen as a critical component of broader energy security strategies. "One of the proposals currently being discussed is a deal to replace Russian gas with supplies from Azerbaijan," Zelensky added.

The proposal aligns with a broader European initiative to diversify energy sources and reduce dependence on Russian gas. Politico reported in June that EU officials had approached Azerbaijan with a plan to transport gas to Europe through Ukraine. Hikmet Hajiyev, Azerbaijani presidential aide and head of the Presidential Executive Office's foreign policy department, confirmed the discussions. "Azerbaijan has been reached out [to] by the European Union and the transit countries [that] we are talking about on the issue," Hajiyev told Politico.

"Currently we are considering different options as to how we can contribute to that process. I would refrain from putting in a time frame, but again, there was [...] an appeal and we have taken it seriously because it's a matter of European energy security," Hajiyev elaborated, underscoring the significance of the negotiations.

An Azerbaijani diplomat, speaking on condition of anonymity, indicated that progress is being made. "We see some security of supply risks when it comes to the end of transit through Ukraine, due to existing infrastructure bottlenecks in the European gas system," the diplomat noted.

Bloomberg earlier reported that various European countries and companies are exploring strategies to ensure continued gas supplies via Ukraine after the current agreement with Russia expires this year. Among the options being considered is for European companies to purchase gas from Azerbaijan and transport it to Europe using Russian pipelines.

Currently, the primary route for supplying Azerbaijani gas to Europe is the Southern Gas Corridor, a pipeline system with a capacity of 10 billion cubic meters (bcm) of gas per year. There are plans to expand this capacity to 20 bcm annually, which could significantly enhance the EU's energy security framework.

The discussions between Ukraine and Azerbaijan come at a critical juncture, with European nations keen to secure reliable and diversified energy sources amidst geopolitical tensions and supply uncertainties. As negotiations progress, the potential transit of Azerbaijani gas through Ukraine could play a pivotal role in reshaping the European energy landscape and ensuring stability for the region’s energy needs.