Russia’s pipeline carrying natural gas from Siberia to European markets through Ukraine has stopped flowing, according to officials in both countries. The halt could ripple through Europe’s energy sector and impact Moscow’s ability to fund its war in Ukraine.
Ukraine refused to renew an agreement that allowed Russia to send natural gas through the Urengoy-Pomary-Uzhgorod pipeline. The deal was honored even after Russia invaded Ukraine in 2022, kicking off the bloodiest European conflict since World War II.
The pipeline was Russia’s last major gas corridor to Europe following the 2022 sabotage of the Nord Stream pipeline and the closure of a route through Belarus. President Volodymyr Zelensky warned for months that he would not renew the five-year contract, which expired on December 31.
The closure could reduce Russia’s revenue from gas sales by $6.5 billion a year, according to analysts. However, it carries risks for Ukraine as Russia may decide to bomb its pipeline network, which has largely been spared from attack so far.
Europe is not significantly affected by the halt, with alternative supplies available. European countries have reduced their reliance on Russian gas and scouted for alternative sources, including Azerbaijan. The pipeline accounted for only about 5% of Europe’s gas imports last year, but its closure could still impact a tight market.
The disruption may also increase pressure on a sector already under strain. Benchmark prices have risen over 50% this year, and supplying alternative gas supply to countries like Slovakia, Austria, and the Czech Republic will be more complex and expensive.
Countries like Hungary, Slovakia, and Serbia continue to buy large amounts of energy from Russia, but some are preparing for alternative sources. Moldova declared a state of emergency amid fears that the end of supplies through Ukraine could endanger its electricity supply, but neighboring Romania’s electricity can alleviate this issue.
Source: https://www.nytimes.com/2025/01/01/world/europe/ukraine-russia-gas-europe-explained.html