Brussels assures preparedness as Russian gas exports via Ukraine cease

The European Commission played down the impact of a halt of Russian gas exports to Europe via Ukraine saying the stop on January 1, had been expected and that the bloc was prepared for it. 

"The European gas infrastructure is flexible enough to provide gas of non-Russian origin to CEE (central and Eastern Europe) via alternative routes," a spokesperson for the European Commission said, Caliber.Az reports via foreign media.

"It has been reinforced with significant new LNG import capacities since 2022."

To recap, in the early hours of New Year’s Day, Russian natural gas exports to Europe via Soviet-era pipelines through Ukraine were halted, ending a long-standing transit deal that expired without an agreement to extend the flow.

This cessation of gas supplies marks the conclusion of a decade-long period of strained relations between Russia and Ukraine, which began after Russia’s annexation of Crimea in 2014.

Ukraine ceased purchasing Russian gas the following year, although the country had continued to transit Russian gas to Europe.

"We have halted the transit of Russian gas. This is a historic moment. Russia is losing its markets, and it will incur significant financial losses. Europe has already decided to abandon Russian gas," said Ukrainian Energy Minister, German Galushchenko, in a statement.

The gas shutdown had been anticipated due to the ongoing conflict between the two nations, which began in February 2022. Ukraine made it clear that it would not extend the agreement during the war.

Gazprom, Russia’s state-owned energy giant, had anticipated the cessation of gas transit via Ukraine, which historically accounted for around half of Russia's total pipeline gas exports to Europe. However, Russia continues to export gas via the TurkStream pipeline, which runs under the Black Sea, serving markets in Türkiye, Hungary, and Serbia.

Following Russia’s invasion of Ukraine in 2022, the European Union intensified efforts to reduce its dependency on Russian energy, seeking alternative sources to meet its energy needs. Countries such as Slovakia and Austria, which were still receiving Russian gas via Ukraine, have also arranged alternative supply routes.

Moldova, a country that was once part of the Soviet Union, has been among the hardest hit. The country has announced that it will now need to implement measures to reduce its gas consumption by a third.

There were no immediate statements from European officials in the early hours of Wednesday.

To recap, the five-year gas transit deal between Russia and Ukraine officially expired on January 1, 2025. Gazprom confirmed that due to Ukraine’s refusal to renew the agreement, it no longer had the technical or legal means to transport gas through Ukrainian territory. The gas supply to Ukraine ceased at 08:00 Moscow time (05:00 GMT).

Ukraine’s energy ministry also confirmed that the transportation of Russian gas through the country had been stopped for national security reasons.

The move will result in a loss of approximately $800 million annually in transit fees for Ukraine, while Gazprom will lose around $5 billion in gas sales.

The termination of these routes further damages Russia’s once-dominant position in the European gas market, a position built over half a century. The Yamal-Europe pipeline via Belarus has also ceased operation, and the Nord Stream pipeline, which ran under the Baltic Sea to Germany, was destroyed in 2022.

In 2018, the various pipelines delivered a record 201 billion cubic metres (bcm) of gas to Europe, but in 2023, the volume transported via Ukraine had dropped to just 15 bcm, compared with 65 bcm when the last five-year contract began in 2020.

By Aghakazim Guliyev