Ukraine contemplates blocking Russian gas shipments to EU
Date
12/16/2024 5:40:23 AM
(MENAFN) Ukraine has confirmed it will stop the flow of Russian natural gas through its transit network on January 1, as the gas transit agreement between Moscow and Kyiv expires on December 31. Ukrainian energy Minister German Galushchenko stated that the government has no plans to extend the deal, which has been in place since 2019.
Despite EU countries’ efforts to reduce dependency on Russian gas, several still rely on supplies from Russia, although the volumes have significantly decreased due to sanctions and the EU's push to sever energy ties with Moscow. Galushchenko emphasized that Ukraine has long prepared for the cessation of gas transit, including conducting multiple stress tests on its gas system to ensure it can function without Russian gas.
The current agreement between Ukraine’s Naftogaz and Russia’s Gazprom ensured the Ukrainian system operated without losses, with Gazprom paying nearly $3 billion for transit services over five years. However, the expiration of this agreement marks a significant shift, as the EU still receives about 5% of its gas from Russia via Ukraine.
Ukraine’s transit system connects to the gas pipelines of Moldova, Romania, Poland, Hungary, and Slovakia. With the end of this transit, the EU will increasingly rely on other sources, including the TurkStream pipeline, which delivers gas from Russia to Türkiye and then to Greece, and potential supplies from Azerbaijan.
Russia, however, has expressed its readiness to continue gas deliveries beyond 2024, with Gazprom CEO Aleksey Miller warning that the EU's actions could lead to economic consequences, including higher gas prices and supply disruptions. Hungary and Slovakia, which remain heavily dependent on Russian gas, have voiced concerns over the EU's energy policies.
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