Slovakia threatens to cut benefits for Ukrainian refugees amid gas transit dispute

Slovakia, under the leadership of Prime Minister Robert Fico, is contemplating significant retaliatory measures against Ukraine following Ukraine's recent decision to halt the transit of Russian gas through its territory. This decision came into effect on January 1, 2025, marking a pivotal moment in the ongoing energy crisis stemming from the war in Ukraine. Fico characterized Ukraine's cessation of gas transit as an act of 'sabotage' and is now poised to propose cuts to electricity exports to Ukraine as well as reducing financial support for the approximately 140,000 Ukrainian refugees currently residing in Slovakia. The situation escalated after a key agreement with Gazprom expired, leading Ukraine to cease gas transport to Europe via its pipelines. The end of this arrangement has significant repercussions for Slovakia, which has historically relied on transit fees from Russian gas supplies. Prime Minister Fico indicated that Slovakia stands to lose around 500 million euros in public finance due to this development, further complicating an already tense energy landscape in Europe. As Ukraine moves toward discontinuing Russian gas imports, it is depriving Moscow of substantial revenue, estimated at 6.3 billion euros per year. However, the repercussions for Slovakia could be dire, necessitating a swift response from the Slovak government to mitigate financial losses. Fico's administration is framing its potential cuts as necessary measures to ensure the sovereignty and financial stability of Slovakia in light of Ukraine's actions. Tensions between Slovakia and Ukraine have reached a boiling point, with accusations traded between Fico and the Ukrainian government. Ukrainian President Volodymyr Zelensky has accused Fico of aligning too closely with Moscow and contributing to the ongoing hostilities faced by Ukraine. Despite reassurances from the European Commission that the impacts of the gas halt would be manageable, energy prices across Europe have surged, indicating that the ramifications of this conflict could extend far beyond the immediate parties involved.