Ukraine ends Russian gas transit to Europe

KYIV: Ukraine has ceased transporting Russian gas to Europe through its territory following the expiration of a five-year transit agreement on Wednesday.

The shutdown of one of Russia’s oldest gas supply routes to the European Union was anticipated and coincides with the approaching fourth year of Moscow’s invasion of Ukraine. Ukraine’s energy ministry stated the decision was made “in the interests of national security.”

“This marks a historic moment—we have halted the transit of Russian gas,” the ministry announced, adding that preparations were made in advance of the agreement’s expiration.

Since the invasion began in February 2022, the EU has worked to diversify energy supplies and reduce dependence on Russian gas. Imports from Russia via pipelines have plummeted, declining from over 40% in 2021 to about 8% by 2023, according to the European Council.

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With the closure of the Ukrainian route, Russia now has only one remaining pipeline to supply gas to Europe: the TurkStream pipeline, which passes through Turkey to Bulgaria.

In 2022, Russian gas giant Gazprom recorded a $6.9 billion loss—its first in over 20 years—due to reduced sales to Europe, despite boosting exports to China.

Ukraine, on the other hand, stands to lose approximately $800 million annually in transit fees, while Gazprom faces a loss of nearly $5 billion in gas sales. However, European countries still reliant on Russian gas, such as Slovakia and Austria, had already arranged alternative supply routes, according to reports.