Russia ceases gas transit through Ukraine after over 30 years

The long-standing arrangement of Russian gas transit to Europe via Ukraine ceased on Wednesday, as confirmed by both Moscow and Kyiv, marking a significant development in the aftermath of the conflict between the neighbouring nations.
Since 1991, following the Soviet Union’s dissolution, Russian gas flowed to Europe through Ukrainian pipelines, generating revenue for both nations – Russia from gas sales and Ukraine from transit fees.
The transit agreement concluded on Wednesday, with Ukraine choosing not to renew following Russia’s 2022 military action, AFP reported.
Ukraine celebrated this cessation as a momentous occurrence, suggesting it would impact Russia’s financial resources and military capabilities.
Russia, however, contends that Ukraine’s decision is self-defeating and problematic for its Eastern European partners dependent on Russian supplies.
Slovakia has criticised this development, whilst other EU members, including Poland, have expressed support.
In 2023, Russian gas constituted less than 10 per cent of EU gas imports, significantly reduced from over 40 per cent pre-war.
Nevertheless, several eastern EU members continue to rely heavily on Russian imports.
Ukraine’s energy minister German Galushchenko announced, “We have stopped the transit of Russian gas,” describing it as “a historical event.”
He stated, “Russia is losing its markets, it will suffer financial losses.”
Gazprom confirmed the cessation of gas transit via Ukraine from “8:00 am (0500 GMT)”, citing loss of “technical and legal right” for cross-border transportation.
European gas prices exceeded 50 euros per megawatt hour on Tuesday, reaching a year-high as Eastern European buyers prepared for supply interruption.
Slovak Prime Minister Robert Fico criticised the development, warning of EU-wide consequences while suggesting minimal impact on Russia.
Fico, who assumed power in 2023, has steered Slovakia towards closer alignment with Moscow.
Poland’s foreign minister Radoslaw Sikorski welcomed the development on X, comparing it to “a new victory after NATO enlargement to Finland and Sweden.”
Hungary remains largely unaffected, receiving Russian gas primarily through the Black Sea pipeline via Turkey and the Balkans.
Brussels has minimised concerns about the impact on the EU, noting its year-long preparation for this scenario.
Ukraine has criticised nations continuing to purchase Russian energy during the conflict, arguing it finances Russia’s military actions.
Energy revenue remains vital for Russia’s economy, with Moscow redirecting exports to Asian markets amidst Western sanctions.
Separately, Gazprom announced suspension of gas supplies to Moldova, prompting a state of emergency regarding power supplies in the nation, which receives gas through the Russian-backed Transnistria region.
Moldova’s electricity primarily comes from a Transnistria-based power station utilising Russian gas.