The Industrial Association (IV) is urging politicians to start negotiations with Ukraine on continuing gas supplies from Russia after the New Year. The industry still needs the gas – at least until a gas connection is completed in Upper Austria. However, Ukraine’s current contract with Russia expires on December 31…
“Politicians must act,” IV Secretary General Christoph Neumayer said on Monday. Without Russian gas, gas prices could rise by 70 percent, without taking into account large short-term market-related fluctuations. Inflation could rise by 2.5 percentage points and gross domestic product could fall by two percent, Neumayer depicted drastic consequences. “We need a consortium that can guarantee the transit of Russian gas through Ukraine.”
Industry: “Then the announcement is over”
In view of the Russian war of aggression, Ukraine will no longer organize gas transit. To ensure that companies can continue to use the physically intact gas pipelines that were not destroyed during the war, politicians must negotiate with the Ukrainian government. Because “if Ukraine wants that, they will turn off the gas tap and it will be closed, end of announcement.”
This is a political decision. Four countries are particularly dependent on Russian gas – along with Austria, Hungary, Slovakia and Slovenia.
New pipeline not ready until 2027
In an informal conversation with the Ukrainian Energy Minister in Vienna, according to Neumayer, ‘tones’ were heard – in contrast to the hard and unyielding official position – and turning off the gas tap seemed to be an ‘option’. It is clear to everyone that both Ukraine and Russia are interested in revenues from gas transit to Europe.
“But it must be made politically possible.” The Austrian economy needs gas from Russia, at least until the expansion of the 40-kilometer WAG pipeline, which runs through Upper Austria and improves gas transfers via Germany, is completed – and it is. not currently expected until 2027.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
