Ukraine and Poland Plan to Establish Eastern European Gas Hub to Bypass Russia

Ukraine and Poland plan to create an Eastern European gas hub to supply fuel to Europe while bypassing Russia, Ukrainian Deputy Energy Minister Mykola Kolesnyk announced on December 18.

The current five-year transit contract with Russia for gas passing through Ukraine is set to expire on December 31. Kolesnyk stated that Ukraine’s underground gas storage facilities and Poland’s liquefied natural gas terminals could form the foundation of a new business model, eliminating the need for Russian transit.

Kolesnyk expressed optimism about securing medium and long-term contracts, modeled after US energy practices. “This will allow Ukraine and Poland to store as much gas as Eastern Europe needs,” he said.

The groundwork for cooperation began in March 2024, when Kyiv and Warsaw signed a memorandum to integrate their gas markets. In August, Ukrainian President Volodymyr Zelenskyy announced that after the expiration of the current Gazprom contract, Ukraine was ready to transport gas from alternative sources.

Despite these plans, leading EU gas companies from Hungary, Slovakia, Austria, and Italy warned that the end of the Gazprom deal could disrupt supplies and raise costs for European consumers. These companies urged the European Commission to explore ways to extend the agreement.

While Russia has signaled a willingness to renew the contract, Ukraine has ruled out further cooperation with Gazprom.

Following Russia’s invasion of Ukraine, many European countries committed to phasing out Russian gas by 2027 as part of a broader push for energy independence.