Russian gas exports via Soviet-era pipelines running through Ukraine have come to a halt, marking the end of decades of Moscow’s dominance over Europe’s energy markets. This decision follows nearly three years of war and comes as expected, with Ukraine refusing to renew a transit agreement.
The last remaining EU buyers of Russian gas via Ukraine, such as Slovakia and Austria, have arranged alternative supply routes. Slovakia will supply its customers mainly via pipelines from Germany, while Hungary will continue receiving Russian gas via the TurkStream pipeline under the Black Sea.
Meanwhile, Transdniestria, a breakaway pro-Russian region of Ukraine’s neighbor Moldova, has cut off heating and hot water supplies to households due to reliance on the transit flows. Ukrainian President Volodymyr Zelenskiy described the halt as “one of Moscow’s biggest defeats.”
The European Commission stated that the EU had prepared for this eventuality, with significant new LNG import capacities since 2022. The commission said that the European gas infrastructure is flexible enough to provide gas from non-Russian sources.
This development marks a shift away from Russian energy, following years of efforts by the EU to reduce its dependence on Moscow’s supply. Russia spent half a century building up a major share of the European gas market, but this dominance has now come to an end.
As a result, Gazprom will lose close to $5 billion in gas sales, while Ukraine will lose around $1 billion annually in transit fees. The company halted supply to Austria’s OMV due to a contractual dispute, but Russian gas had been reaching Austria via Slovakia at a rate of around 200 GWh per day.
The halt in Russian gas exports via Ukraine marks the end of an era for Russia’s dominance over Europe’s energy markets, with Norway, US, and Qatar replacing Russian gas as key suppliers.
Source: https://www.reuters.com/business/energy/russia-halts-gas-exports-europe-via-ukraine-2025-01-01