Slovakia's SPP Adjusts Gazprom Deal Amid EU Energy Transition

Slovakia's state-owned gas company, SPP, has modified its long-term agreement with Gazprom to align the contract with European Union regulations. This ensures continued Russian gas imports, as confirmed on Friday, following talks aimed at increasing volumes before a European Union-imposed ban begins next year. European gas prices spiked 50% this week as geopolitical tensions flared.

The amended contract aligns with the EU's RePowerEU initiative, which seeks to reduce reliance on Russian energy sources. In a statement to Reuters, SPP expressed that this strategic commercial decision allows them to leverage the most cost-effective gas supply. As of November, SPP reported a reduction in Russian gas, receiving only one-third of its 2025 supply needs, after Ukraine transit ceased in December 2024.

SPP might increase Russian imports to meet full demand until 2027, depending on negotiations. Slovakia's switch last year to Russian gas via Turkey faced limitations due to capacity issues. While Gazprom did not comment, EU rules restrict increasing contracts for Russian gas but allow amendments under specific criteria. Discussions also included potential LNG imports after 2027 to ensure diversified supplies.