Russian gas flows to Europe through Ukraine stop permanently

Russian gas deliveries to Europe via Ukraine ceased on New Year’s Day, concluding decades of reliance on Moscow’s energy dominance. Gazprom confirmed the halt at 0500 GMT, following Ukraine’s refusal to renew a transit agreement. The stoppage, long anticipated, follows a dramatic shift in European energy dynamics spurred by the war in Ukraine.

Alternative supply arrangements by EU nations such as Slovakia and Austria have ensured that the end of Russian gas transit through Ukraine will not affect consumer prices. Hungary remains connected to Russian gas through the TurkStream pipeline, while Moldova’s pro-Russian Transdniestria region is already facing heating shortages due to the cutoff.

The European Union has significantly reduced its dependence on Russian energy, replacing supplies with liquefied natural gas from Qatar and the US, as well as piped gas from Norway. Ukrainian Energy Minister German Galushchenko hailed the decision as historic, stating that Russia would face substantial financial losses as a result.

Both sides are set to incur economic setbacks. Ukraine is losing $800 million annually in transit fees, while Gazprom faces a $5 billion drop in sales. Once dominant in Europe’s energy markets, Russia’s share has plummeted from 35% to near irrelevance, marking the end of an era shaped by Soviet-era pipeline projects.