Business
Ukraine Begins Importing US LNG via Greece Amid Ongoing Conflict
Ukrainian President Volodymyr Zelensky announced that the country will start importing US liquefied natural gas (LNG) this winter through a pipeline that crosses the Balkans. This significant development follows a meeting with Greek Prime Minister Kyriakos Mitsotakis in Athens on Sunday. The agreement is part of a broader effort by Greece to enhance the supply of American LNG to replace Russian gas in the region, a strategy that Mitsotakis emphasized in recent statements.
The European Commission has set a goal to phase out all imports of Russian gas by the end of 2027, asserting that the proceeds from these sales contribute to funding Russia’s military actions in Ukraine. As Ukraine grapples with ongoing conflict, Zelensky’s government is seeking alternative energy sources to bolster its energy security.
The import of US LNG is expected to commence in January 2024, as Zelensky noted during his address in Athens. He remarked, “We rebuild each time the Russians destroy, but this truly requires time, much effort, equipment, and, regarding gas… imports to compensate for the destruction by the Russians of our own production.” Mitsotakis reaffirmed Greece’s role, stating, “Greece is becoming an energy security provider for your homeland.”
Ukrainian officials have allocated approximately €2 billion (around $2.3 billion) for gas imports from European partners and banks, supported by guarantees from the European Commission. Since 2015, Ukraine has ceased direct purchases of Russian gas, instead sourcing supplies from various EU nations.
The Trans-Balkan pipeline, a relic from the Soviet era, connects Ukraine to LNG terminals in Greece via Moldova, Romania, and Bulgaria, facilitating this new energy import route.
Zelensky’s visit to Greece was not his only diplomatic effort this week. He is currently in France for discussions with President Emmanuel Macron regarding a significant air defense hardware deal. While in France, Zelensky is expected to review Rafale fighter jets, the SAMP-T air defense system, and several drone systems. He will also inspect the headquarters of a planned multinational force aimed at potentially overseeing a future ceasefire between Ukraine and Russia.
The conflict has taken a devastating toll, with tens of thousands of casualties and millions of civilians displaced since February 2022, when Russian President Vladimir Putin launched a full-scale invasion of Ukraine. As the situation evolves, Ukraine’s strategic moves to secure energy resources and military support are critical to its ongoing defense efforts.
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