Russia’s state-controlled energy giant Gazprom will reduce gas flows to Europe via Ukraine, effective December 31, as a five-year transit agreement expires. The move is part of a broader EU shift away from Russian energy, with Norway, the US, and Qatar emerging as key suppliers.
Gazprom, which reported a $7 billion net loss in 2023, will forgo nearly $5 billion in annual sales from the Ukrainian route. Ukraine will relinquish an estimated $800 million in annual transit fees. The decision has significant implications for Moldova, where reduced gas supplies may fuel tensions between Moscow and Chisinau.
Gazprom’s future hinges on pivoting to Asia, where it has sought new buyers in China and India. However, these efforts have yet to offset losses in Europe. The breakdown of the Ukraine route underscores Russia’s near-total collapse in Europe’s energy market.
As Russia seeks to diversify its energy exports, EU countries are increasingly turning to alternative suppliers, reducing their reliance on Russian gas. This shift has significant implications for global energy dynamics and geopolitics.
Source: https://www.themoscowtimes.com/2024/12/31/gazprom-reduces-european-gas-flows-ahead-of-transit-deal-expiration-a87495