Exclusive-Slovakia seeks to raise Russian gas imports before EU ban kicks in

Exclusive-Slovakia amends Gazprom gas contract, seeks to raise Russian imports before EU ban kicks in

By Jan Lopatka and Marek Strzelecki

Slovakia's Gas Contract Amendments and EU Energy Policy

Background and Recent Developments

PRAGUE/WARSAW, March 6 (Reuters) - Slovakia's national gas company, SPP, has amended its long-term contract with Gazprom to align it with European regulations and continue to import Russian gas, it said on Friday, after talks that sources said were intended to raise volumes before an EU ban on Russian gas kicks in late next year.

EU gas prices have jumped 50% this week after Qatar halted liquefied natural gas exports following U.S. and Israeli strikes on Iran and Tehran's retaliation. SPP began the talks before the conflict erupted.

SPP said the amendment was meant to put the long-term contract in line with the EU's RePowerEU plan to wean the bloc off Russian energy.

"This commercial solution will help SPP utilize what is currently the most price-competitive source of gas," SPP said in a statement sent to Reuters.

Russian Gas Supplies and Future Prospects

Current Import Volumes and Potential Increases

SPP said in November that as of that date it had received only one-third of its 2025 gas supply from Russia, after transit through Ukraine ended in December 2024. Russian supplies had previously made up most of its roughly 3 billion cubic metres of annual imports.

The company may lift Russian purchases to as much as 100% of its needs until 2027 if discussions succeed, two sources with knowledge of the matter told Reuters earlier.

SPP did not comment on volumes.

Alternative Routes and Supply Constraints

Slovakia last year switched to importing Russian gas via Turkey, but capacity constraints limited the flows.

SPP covers about two-thirds of Slovak gas demand.

Gazprom declined to comment.

EU Regulations and Contract Amendments

Legal Framework and Exemptions

EU rules bar countries from increasing contract volumes for Russian gas as part of the bloc's drive to punish Moscow for its invasion of Ukraine, but they allow some necessary amendments to existing deals. 

One source said the talks included unspecified changes to the contract, which covers "large volumes." Any amendment required an EU exemption to be assessed by the Slovak Economy Ministry, the source added. The ministry did not respond to a request for comment.

EU states must end Russian LNG imports by the end of 2026, though pipeline flows can continue until November 1, 2027, if a country is struggling to fill storage with non-Russian gas.

Slovakia's Search for Alternative Gas Sources

Exploring LNG and Non-Russian Options

SPP has been exploring options to potentially import LNG mainly via Poland and Germany, and also from Italy, after November 1, 2027, the sources said. One source added that the company has received around 20 offers for non-Russian gas after 2027.

Oil Imports and Exemptions

Slovakia, along with Hungary, is also exempt from the EU's ban on buying Russian oil due to difficulties in accessing alternative supplies, though those imports have been disrupted recently by damage to the Druzhba pipeline.

Reporting and Editorial Credits

(Reporting by Jan Lopatka in Prague and Marek Strzelecki in Warsaw; Additional reporting by Kate Abnett in Brussels and Vladimir Soldatkin; Editing by Mark Potter and Matthew Lewis)