EU eyes Ukraine gas storage with Türkiye and Greece imports to ease Slovakia dispute
This picture shows equipment from the border release and compressor station of the gas pipeline from Ukraine in Veľke Kapusany, eastern Slovakia, September 2, 2014 (AFP Photo)
The European Commission is reportedly evaluating a proposal to use Ukraine’s underground gas storage facilities to import gas from Türkiye and Greece, aiming to resolve tensions with Slovakia and reduce dependency on Russian energy, according to EU and government sources familiar with the discussions speaking to Politico.
The plan, initially discussed during a European Commission visit to Kyiv last month, could re-establish Slovakia as a key transit country and help mitigate its loss of revenue following the end of a long-standing gas transit agreement between Ukraine and Russia.
Ukraine gas storage plan tied to ending Russia transit deal
Slovakia’s government, led by Prime Minister Robert Fico, has expressed frustration over the halt of Russian gas transit through Ukraine, which officially ended on Dec. 31, 2024.
Slovakia had been earning up to €500 million ($541.1M) annually from transit fees. Fico has urged Kyiv to renew the agreement with Moscow and threatened to cut electricity exports to Ukraine and withdraw support for Ukrainian refugees.
To avoid rekindling dependence on Russian gas — a key goal under the EU’s REPowerEU strategy to phase out Russian energy imports by 2027 — the new proposal would involve purchasing gas from Greece and Türkiye, then storing up to 10 billion cubic meters in Ukraine’s underground facilities. This gas would be routed through Slovakia to other EU nations, including Hungary, especially during peak winter demand.
“This would make Slovakia a transit country again,” an EU Commission official said, noting that the approach adheres to REPowerEU objectives.
Strategic shift to Greece and Türkiye gas supply
Officials said the idea could calm rising tensions within the EU, particularly as Slovakia’s support is critical for advancing broader EU initiatives.
Commission President Ursula von der Leyen, during her Kyiv visit, emphasized the potential of Ukraine’s storage.
“We will seize the full potential of Ukraine’s vast gas storages, of which 80% are located close to EU Member States,” she said. “This generates income for Ukraine. All these efforts will result in greater energy security for both Ukraine and the European Union.”
EU leaders earlier this month tasked the Commission with finding “workable solutions to the gas transit issue” to win Fico’s backing for EU defense spending proposals.
Pipeline and infrastructure limitations raise feasibility concerns
Despite strategic interest in the plan, industry experts warn that logistical barriers may prevent full implementation.
Aura Sabadus, a senior gas market expert at ICIS, called it a “good idea” in theory but noted the Trans-Balkan pipeline—running through Türkiye, Bulgaria, Romania, and into Ukraine—currently supports only about 2.5 billion cubic meters (bcm) of gas annually, far less than the proposed 10 bcm.
She added that Romania and Bulgaria have not made adequate gas trading capacity available and that Romania’s Transgaz transmission fees are prohibitively high.
Sergiy Makogon, former head of Ukraine’s state gas grid operator GTSOU, echoed these concerns, stating: “For me, this idea does not make any commercial sense.” He added that Slovakia, Hungary, and other nearby countries already have sufficient storage capacity.
Financial viability in question
Traders and analysts also questioned the economic logic of the plan.
One gas trader cited the risk of Russian strikes on Ukrainian infrastructure and said moving gas through Ukraine to Slovakia is costly, “There is some appetite still to buy gas from Ukraine despite the risks of Russia targeting its storage facilities,” the trader said. “But doing so makes no sense financially.”
The trader added that unless EU countries subsidize the gas transit and storage, “commercially—no point.”
Azerbaijan’s alternative also faces obstacles
An alternative suggestion to source gas from Azerbaijan has its own complications. While Baku has claimed it could supply gas to the EU, analysts say Azerbaijan lacks the capacity to meet demand without using Russian gas under swap arrangements—a move that would conflict with EU energy goals.
Finland’s Climate and Environment Minister Sari Multala commented: “Solutions that can lead to EU countries not being dependent on Russian gas or oil are better than the ones that are.”
