Russia Ends Gas Transit to Europe via Ukraine Amid War Fallout
Hamrakura
Published 2025 Jan 02 Thursday
Moscow/Kyiv: The decades-long transit of Russian gas to Europe through Ukraine officially ended on Wednesday, as both Moscow and Kyiv confirmed the termination of their gas transit agreement. The halt marks another significant consequence of the ongoing war between the two nations.
Russian gas has flowed to Europe via Ukrainian pipelines since the collapse of the Soviet Union in 1991, providing critical revenues to Moscow from gas sales and to Kyiv from transit fees. However, the transit contract, which expired on Wednesday, was not renewed by Ukraine following Russia's invasion in 2022.
Ukraine celebrated the development as a "historic event" and claimed it would weaken Russia financially. "Russia is losing its markets and will suffer financial losses," said Ukrainian Energy Minister German Galushchenko.
Russia's state-owned energy giant Gazprom confirmed that gas supplies through Ukraine ceased at 8:00 am (0500 GMT) on Wednesday, citing a lack of "technical and legal" grounds to continue.
Impact on Europe
The termination has sparked varied reactions across Europe. Slovakia, heavily reliant on Russian gas, criticized the move, with Prime Minister Robert Fico warning it would harm the European Union more than Russia. "Halting gas transit via Ukraine will have a drastic impact on us all in the EU but not on the Russian Federation," Fico stated.
Conversely, Poland welcomed the decision, with Foreign Minister Radoslaw Sikorski calling it a "victory" and equating it to NATO's recent expansion. Poland no longer imports Russian gas, having diversified its energy sources.
Hungary, which receives most of its Russian gas via an alternative route through the Black Sea and the Balkans, is expected to face minimal disruption. Meanwhile, the EU, which has significantly reduced its dependence on Russian gas from over 40% before the war to under 10% in 2023, has downplayed the impact of the halt.
"The Commission has been preparing for a scenario without Russian gas transiting via Ukraine for over a year," an EU spokesperson told AFP.
Broader Implications
The end of the transit deal also reflects Russia's shifting energy strategy, as Western sanctions push it to redirect exports toward Asian markets. Nevertheless, energy revenues remain vital for Russia's economy and its ability to fund the war in Ukraine.
Adding to the energy tension, Gazprom announced on Wednesday that it would halt gas supplies to Moldova, citing a payment dispute. Moldova, which relies heavily on Russian gas and power from the breakaway region of Transnistria, has declared a state of emergency over potential energy shortages.
The halt in gas transit underscores the deepening geopolitical rift between Russia and Europe while further complicating energy security in the region.