Ukraine officially ceased the transit of Russian gas to several European nations on New Year’s Day, signaling an end to Moscow’s decades-long dominance in Europe’s energy markets.
Russia’s state-owned energy company, Gazprom, confirmed that gas exports through Ukraine were halted at approximately 8 a.m. local time on Wednesday.
The move, anticipated by many, concludes a five-year transit agreement between the two nations. Both sides have declined to negotiate a new deal amid the ongoing conflict.
Ukrainian President Volodymyr Zelenskyy stated last month that Kyiv had no intention of extending the gas transit, declaring, “We will not give the possibility of additional billions to be earned on our blood.”
EU Faces Disruption As Ukraine Halts Gas
Russia, which has relied on Ukrainian pipelines to transport gas to Europe since 1991, warned that European Union nations would bear the brunt of the supply disruption. Despite the halt, Moscow can still export gas via the TurkStream pipeline, which connects Russia with Hungary, Serbia, and Turkey.
Ukraine is projected to lose up to $1 billion annually in transit fees, according to Reuters, while Gazprom, Russia’s state-owned energy giant, faces an estimated $5 billion loss in gas sales.
The European Commission, the EU’s executive body, stated that it had been working with the most affected member states to prepare the entire 27-nation bloc for the cessation of the gas transit agreement.
Slovakia, Austria, Moldova Face Gas Shortages
Slovakia, Austria, and Moldova are among the nations most vulnerable to the disruption in Russian gas supplies. In 2023, these countries were heavily reliant on Russian gas, with Slovakia importing around 3.2 billion cubic meters, Austria receiving 5.7 billion cubic meters, and Moldova dependent on 2 billion cubic meters, according to Rystad Energy.
‘Historic Event’ For Ukraine
Ukrainian Energy Minister Herman Galushchenko called the halt of Russian gas flows through Ukraine a “historic event.”
“Russia is losing markets, it will suffer financial losses,” Galushchenko said via Telegram on Jan. 1, according to a Google translation.
“Europe has already decided to abandon Russian gas. And the European initiative Repower EU provides for exactly what Ukraine has done today.”
