1. Between the Baltic and the Balkans, the new geopolitics of gas
- Author:
- Gilles Lepesant
- Publication Date:
- 01-2025
- Content Type:
- Working Paper
- Institution:
- Robert Schuman Foundation (RSF)
- Abstract:
- On December 31, 2024, the gas transit agreement signed in 2019 between the Ukrainian grid operator and Russia expired. As the Ukrainian government had refused to negotiate a renewal of the agreement in advance, gas flows to European markets were suspended. Announced several months ago, Ukraine's opposition to extend its gas transit agreement with Russia (Kyiv is now self-sufficient in gas) marks a new stage in the reshaping of Central Europe's natural gas geography. This process was initiated in the early 1990s and gathered pace with the invasion of Ukraine in February 2022. Russia halted gas exports via the Nord Stream pipeline and via Belarus in the summer of 2022, and flows through Ukraine were significantly reduced before ceasing altogether. Since January 1st 2025, only the Turk Stream pipeline supplies European countries with Russian gas by land. Central Europe has been particularly hard hit by the gas crisis that started in 2022. Gas plays an important role in this region, not least because of the need for heating and the importance of the manufacturing sector in the region's economies. Gas production is growing slightly in Hungary, Poland and, above all, Romania. But the volumes extracted make only a modest contribution to the region's energy security. Moreover, several central European countries have for several decades enjoyed transit fee revenues. Finally, most of them are landlocked or have short coastlines. All of these factors make Central Europe a unique region. Added to this is the legacy of the Communist period, when energy policies favoured coal, and for which gas is now a often seen as an alternative. In this particular context, energy flows between the Baltic Sea, the Black Sea and the Mediterranean Sea are changing. This is reflected not only in a contraction of flows from Russia, but also in an intensification of north-south or south-north flows, and a growing interdependence between the states of the region, as well as with certain member states of the European Union.
- Topic:
- European Union, Geopolitics, Gas, Exports, and Russia-Ukraine War
- Political Geography:
- Balkans, Central Europe, and Baltic States