Europe gas deal with Azerbaijan not in sight, Slovakia's SPP says
PRAGUE/BAKU, Nov 1 (Reuters) -European companies are not nearing a deal to replace Russian gas imports via Ukraine with supply from Azerbaijan, Slovak state-owned gas buyer SPP said on Friday, dismissing a media report that said a deal was close.
The current five-year deal between Moscow and Kyiv on Russian gas exports via Ukraine to Europe expires at the end of the year, forcing the European Union to search for alternative sources of gas, including from Azerbaijan, while engaging in talks to keep the route open.
Russia has said it is willing to continue supplies through Ukraine despite the war with its neighbour, while Kyiv has refused to engage in discussions with Moscow on gas exports.
Bloomberg reported on Thursday that companies from Hungary and Slovakia were close to signing a contract for as much as 12-14 billion cubic metres of gas a year from Azerbaijan, citing people with knowledge of the matter.
"We regularly discuss the topic with our partners, but the information about the upcoming conclusion of a gas supply contract with the participation of SPP is not true," SPP told Reuters in a statement.
SPP has been a leading voice in trying to keep the transit open despite Russia's war with Ukraine, as alternative routes are more costly and it faces potential bottlenecks in other pipelines.
Ukraine state energy firm Naftogaz did not respond to a request for comment, while an energy industry source in Ukraine dismissed the report.
Kremlin spokesman Dmitry Peskov was also sceptical about a deal, when asked on a conference call with reporters on Friday.
"How events will continue to unfold, how supplies will continue to be ensured, taking into account the fact that Ukraine has already announced its refusal to extend this agreement, now I can't say anything," he said.
Russian pipeline gas export monopoly Gazprom GAZP.MM declined to comment
A total of 14 billion cubic metres of Russian gas is expected to have been exported through Ukraine this year, a fraction from pre-war levels.
Two sources at Azerbaijan's energy company SOCAR also downplayed the report, while the company did not immediately reply to a request for comment.
Reporting by Jason Hovet, Nailia Bagirova, Dmitry Antonov and Pavel Polityuk; Writing by Vladimir Soldatkin; Editing by Emelia Sithole-Matarise
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