Russian natural gas exports via Soviet-era pipelines running through Ukraine to Europe ceased early on New Year’s Day after Moscow and Kyiv failed to renew their transit agreement amid the ongoing war. The shutdown marks the end of a decade-long energy relationship strained by geopolitical tensions and conflict.
Ukraine’s Energy Minister, German Galushchenko, hailed the stoppage as a “historic event,” emphasizing its significance for both countries and Europe. “Russia is losing its markets and will suffer financial losses. Europe has already decided to abandon Russian gas,” he said.
The five-year gas transit agreement, signed in 2019, expired at midnight on January 1. The breakdown in negotiations highlights the deepening rift between the two nations, exacerbated by Russia’s 2014 annexation of Crimea and Ukraine’s decision to stop purchasing Russian gas in 2015.
In a statement on Telegram, Russian energy giant Gazprom blamed Ukraine for the shutdown, citing Kyiv’s refusal to renew the agreement. “Due to the repeated and clearly expressed refusal of the Ukrainian side to renew these agreements, Gazprom was deprived of the technical and legal ability to supply gas for transit through Ukraine from January 1, 2025,” the company said. It confirmed that as of 8:00 a.m. Moscow time (5:00 a.m. GMT), gas supplies through Ukrainian territory had been halted.
The decision comes with significant financial repercussions. Ukraine stands to lose $800 million annually in transit fees, while Gazprom is projected to forfeit nearly $5 billion in gas sales. Despite the stoppage, Russia’s TurkStream pipeline, which runs under the Black Sea, continues to operate, supplying Turkey and central European nations such as Hungary and Serbia.
Ukraine’s energy ministry cited national security concerns as the primary reason for ending Russian gas transit. The move aligns with Europe’s broader effort to reduce dependency on Russian energy in response to Moscow’s invasion of Ukraine.
The halt underscores the ongoing shift in Europe’s energy landscape, with many countries actively seeking alternatives to Russian gas. The decision also reflects Ukraine’s determination to sever ties with Moscow in the energy sector, even at a considerable economic cost.
This development signals another chapter in the ongoing geopolitical and economic conflict between Russia and Ukraine, with ramifications for the global energy market.
