Moscow and Kyiv have failed to agree on a deal brokered by Azerbaijan to continue Russian gas exports to Europe via Ukraine, a senior source at the Azeri energy company SOCAR told Reuters on Friday.
The European Union and Ukraine had asked Azerbaijan to facilitate discussions with Russia about a gas transit deal that is set to expire at the end of this year.
Russian President Vladimir Putin said on Thursday that it was clear there would be no new deal with Kyiv to send Russian gas through Ukraine to Europe.
Ukraine, fighting Russia's invasion since February 2022, has said it will not extend a contract under which close to 15 billion cubic metres (bcm) of Russian gas are sent to Europe each year. That compares to the 150 billion bcm of piped gas that flowed through Ukraine in 2022.
Ukrainian PM Denys Shmyhal said the transit agreement would expire on the morning of Jan. 1, Interfax-Ukraine news agency reported. He said transit could only resume for non-Russian gas, if requested by the European Commission.
The SOCAR source said SOCAR had been mediating in negotiations between Ukrainian and Russian energy companies for almost a year, at the request of Ukraine and the European Union.
He said senior managers had met senior representatives of Ukrainian energy companies on May 2 in Istanbul and on Aug. 29 in Vienna, adding: "In the end, the Ukrainian and Russian sides could not agree on the terms."
SOCAR, the Russian energy giant Gazprom (GAZP.MM) and Ukraine's state-run Naftogaz did not immediately reply to requests for official comment.
