"BRUSSELS, Jan 9 (Reuters) - Slovakia is weighing retaliation against Ukraine including withholding aid if a solution is not found to Kyiv's decision to shut off Russian gas," Prime Minister Robert Fico said on Thursday after talks with EU Energy Commissioner Dan Jorgensen.
Kyiv took the step on Jan. 1 to help fund Russia's war on Ukraine, giving time for alternative suppliers to be found, and maintaining supplies in the EU.
However, Fico states that the move will cost Slovakia 1 billion euros ($1 billion) a year in higher gas prices and 500 million euros in onward transit fees.
He has threatened to cut emergency electricity supplies to Ukraine as Russia attacks its power grid or reduce aid for Ukrainian refugees.
On Thursday, he mentioned that the government could also halt humanitarian aid or use its veto right on EU decisions regarding Ukraine, emphasizing that he did not want to escalate tensions.
"There is nothing - not international law or sanctions - that prevents the transit of gas through Ukraine," he told reporters in Brussels.
He stated that higher energy prices would impact EU competitiveness.
"If the EU's damage is lasting, as well as Slovakia's, Slovakia will take reciprocal measures," Fico added.
Slovakia and the European Commission announced they had agreed to establish a working group on the matter. The Kyiv energy ministry did not respond immediately to requests for comment.
Fico has altered Slovakia's foreign policy since taking power in 2023 by fostering relations with Russia and refusing to provide military assistance to Ukraine.
It was unclear how he had calculated Slovakia's potential losses.
The 51% state-owned Slovak gas transmission operator Eustream reported revenue for all gas transit of 226 million euros for the year ending July 2023, the latest available - a figure that encompasses a small portion of non-Russian gas.
Slovakia had offered technical solutions including taking ownership of the Russian gas before it entered Ukraine, but Kyiv rejected them at an EU summit in December. Days later, Fico met with the Russian President in Moscow to discuss the matter.
Slovakia, which has a contract with Russia's Gazprom, requires 4-5 billion cubic metres (bcm) of gas annually to meet its needs, and had been importing around 3 bcm from Russia via Ukraine.
SPP, the state gas firm, is currently purchasing liquefied natural gas (LNG) from BP, ExxonMobil, Shell, Eni, and RWE. ($1 = 0.9695 euros)".