Investing.com -- Russian President Vladimir Putin has acknowledged that establishing a new contract for the transportation of natural gas through Ukraine will be challenging. During a news conference near St. Petersburg on Thursday, Putin stated that it would be impossible to finalize a contract in a mere three to four days.
Putin also discussed various proposals that would involve Hungary, Slovakia, Turkey, or Azerbaijan taking control of the gas transported through Ukraine. However, each proposal presents its own set of difficulties, as Gazprom PJSC (OTC:OGZPY), Russia's majority state-owned multinational energy corporation, has long-term contracts that are not easily altered.
Earlier this month, Ukrainian President Volodymyr Zelenskiy stated that his country will not permit the transit of gas of Russian origin through its borders, as long as the ongoing conflict continues without assurances that the Kremlin will not profit financially from it.
The current gas transit contract between Russia and Ukraine is due to expire this month. Several countries, including Slovakia, heavily depend on Gazprom (MCX:GAZP) to meet their natural gas demand, even as a significant portion of Europe is gradually reducing its reliance on Russian piped gas.
In a separate development, Putin mentioned that a lawsuit from Ukraine's Naftogaz, claiming that Gazprom has not fully compensated for transit services, serves as another obstacle to a swift agreement. Naftogaz lodged the claim in Switzerland in 2022.
Putin suggested that Russia might explore other routes and is prepared to commence gas supply to Europe via Poland immediately, provided the Warsaw government gives its approval. He further suggested that Ukraine should withdraw its claim from the court to facilitate the negotiation process.
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