KYIV, Jan 1 (Alliance News): Russian natural gas exports via Soviet-era pipelines through Ukraine to Europe were halted early on New Year’s Day after a transit agreement expired.
The move follows the collapse of negotiations between Moscow and Kyiv to continue the flows.
The shutdown marks a significant development in the long-standing tensions that began with Russia’s 2014 annexation of Crimea, which led Ukraine to stop buying Russian gas the following year.
Ukraine’s Energy Minister German Galushchenko called the decision “historic,” emphasizing that Russia is losing its markets and will incur substantial financial losses.
“We stopped the transit of Russian gas. Russia is losing its markets, it will suffer financial losses. Europe has already made the decision to abandon Russian gas,” Galushchenko said.
The end of the gas transit deal, part of the broader fallout from the war that began in February 2022, was anticipated. Kyiv had made it clear that it would not extend the deal amid the ongoing conflict.
According to industry sources, Gazprom had already planned for the halt of gas transit via Ukraine, which historically accounted for roughly half of Russia’s total pipeline gas exports to Europe.
While gas flows through Ukraine have ceased, Russia continues to export gas through the TurkStream pipeline, running through the Black Sea to countries including Hungary and Serbia.
In response to the war, the European Union has ramped up efforts to reduce its reliance on Russian energy, seeking alternative sources.
Many countries still dependent on Russian gas through Ukraine, such as Slovakia and Austria, have secured alternative supplies.
Moldova, severely affected by the disruption, said it would need to implement measures to reduce its gas consumption by a third.
The five-year transit agreement between Russia and Ukraine expired on January 1. Gazprom issued a statement explaining that it was left unable to supply gas for transit via Ukraine from that date due to Ukraine’s refusal to renew the deal.
“Starting from 08:00 Moscow time (0500 GMT), the supply of Russian gas for its transportation through the territory of Ukraine is not carried out,” Gazprom’s statement said.
Ukraine’s energy ministry echoed the decision, stating that halting gas transport through its territory was in the country’s national security interest. Ukraine faces a loss of roughly $800 million a year in transit fees, while Gazprom is expected to lose about $5 billion in gas revenue.
Other pipelines, including the Yamal-Europe and Nord Stream routes, have already been shut or destroyed since the onset of the conflict.
