By Rostyslav Averchuk
Lviv, Ukraine, Jan 10 (EFE).- Ukraine is considering halting the transit of Russian oil through its territory, urging Europe to cut back on Russia’s liquefied natural gas (LNG) imports that hit record levels in 2024.
The move aims to disrupt Russia’s energy revenues, a key source of funding for its ongoing war.
However, Ukraine’s Prime Minister Denys Shmyhal cautioned that stopping the oil transit unilaterally would breach existing agreements with the European Union.
Speaking to parliament on Friday, Shmyhal stressed that Ukraine must honor its commitments under the Energy Charter Treaty and the EU Association Agreement.
A draft law introduced by Ukrainian lawmakers on Wednesday proposes terminating the oil transit to Slovakia, Hungary, and Czechia via the Druzhba pipeline.
“Stopping the transit of oil through the Druzhba oil pipeline would be a direct violation by Ukraine of the Energy Charter Treaty and the Association Agreement with the EU,” Shmyhal warned, noting that the affected countries could seek large fines for Ukraine.
Legal Challenges and Force Majeure
Ending the oil transit contract, which runs until 2030, presents more complex legal challenges compared to the recently concluded gas transit agreement, experts say.
According to Volodymyr Omelchenko, an energy expert at the Razumkov Centre in Kyiv, the discussions are likely to continue, and the Ukrainian government needs to consider the legal issues more carefully.
“According to international law, war is a force majeure. Ukraine can cancel the contract and suffer no repercussions. It is inconceivable for Ukraine to help Russia earn the money that it uses to shell us every day,” Omelchenko told EFE.
Ukraine earns an estimated $150-200 million annually from Russian oil transit, while Russia’s revenues from the same arrangement exceed $6 billion.
Additionally, Ukraine’s war-battered energy system must supply electricity to pump the oil, further straining its resources.
Last August, Ukraine briefly floated the idea of halting oil transit but quickly reaffirmed its commitment to existing contracts.
Regional Fallout
Hungary’s Foreign Minister Péter Szijjártó warned on Thursday that Budapest would block Ukraine’s EU integration if gas and oil transits were disrupted.
Omelchenko said Hungary and Slovakia were already inclined to complicate matters for Ukraine.
He said these countries had alternative energy sources, but they are reluctant to bear the financial costs.
Their continued reliance on Russian energy effectively bankrolls Moscow’s aggression, he added.
“They do not care that by buying Russian oil and gas they are financing Russian aggression and thus enabling the murder of more Ukrainians,” the expert underlined.
LNG and Tankers in Focus
Ukraine has also pressed Western partners to tighten sanctions on Russian energy exports and improve compliance.
“If we want to stop the killings, we have to cut off Putin’s money supply,” President Volodymyr Zelenskyy said during the meeting at the US Ramstein Air Force base in on Thursday.
While the halt of gas transit through Ukraine’s territory could cost Russia $6 billion annually, European nations, particularly , Belgium, and Spain, imported a record 16.5 million tonnes of Russian LNG in 2024.
“LNG s for only 5 percent of the EU’s total gas consumption, yet the bloc remains a crucial market for Russia. A complete ban on Russian LNG imports would significantly disrupt Kremlin revenues with minimal impact on EU energy security,” according to the NGO Razom We Stand.
Omelychenko believes that LNG supplies from the US, Qatar, or Senegal could easily replace Russian imports, given time.
Ukraine has also raised concerns over Russian oil tankers circumventing price caps and engaging in suspicious activities near underwater energy and internet cables in the Baltic Sea. Experts warn these tankers pose environmental and security risks and warrant stricter monitoring. EFE
ra-sk
