Europe faces €70 billion economic setback from end of Russian gas flow through Ukraine

European countries may lose 70 billion euros due to the stoppage of gas transit from Russia through Ukraine, Deputy Speaker of the Slovak Parliament Tibor Gašpar said.

“According to estimates, the damage from stopping transit could amount to 70 billion euros,” the politician said, Caliber.Az reports via Russian media.

Gašpar added that Ukrainian President Volodymyr Zelenskyy did not realize that stopping the transit of Russian gas could cause significant problems for Slovakia and for the whole of Europe.

According to the deputy parliamentary speaker, the Ukrainian leader “solves issues as if he woke up early in the morning.”

The politician emphasized that Slovakia perceives the stoppage of gas transit extremely negatively and intends to react to this step of Ukraine. In particular, it may veto several European Commission decisions that will touch upon the issue of financial assistance to Kyiv.

As of January 1, 2025, Ukraine ceased the transit of Russian natural gas to Europe, ending a longstanding energy relationship. This decision followed the expiration of a five-year transit agreement between Ukraine's Naftogaz and Russia's Gazprom, which Ukraine chose not to renew. Energy Minister Herman Halushchenko stated that the halt was "in the interest of national security," emphasizing that Russia would incur financial losses and that Europe had already decided to phase out Russian gas. 

The European Commission had anticipated this development and prepared for a scenario without Russian gas transiting via Ukraine. Commissioner Kadri Simson noted that Central and Southeastern Europe had diversified supply options to fully replace the 14 billion cubic meters of Russian gas that was still transiting Ukraine.

In response to the cessation, European gas prices experienced a 4.3% increase, reaching nearly €51 per megawatt-hour, the highest since October 2023. This surge occurred ahead of anticipated cold weather across Europe.

By Khagan Isayev