Canada Global (Web News) On New Year’s Day, Russia’s gas exports through Soviet-era pipelines via Ukraine to Europe were halted as a transit deal expired, with no agreement reached between Moscow and Kyiv to continue the flow.
This marks the end of a decade-long strained relationship following Russia’s 2014 annexation of Crimea. Ukraine stopped buying Russian gas the following year and has refused to renew the transit deal due to ongoing conflict.
Gazprom had anticipated the loss of this pipeline route, which accounted for about half of Russia’s gas exports to Europe. Despite the shutdown, Russia still supplies gas to Europe through the TurkStream pipeline. Meanwhile, European countries have sought alternative energy sources, and Moldova, heavily dependent on Russian gas, faces significant reductions in supply.
Ukraine loses $800 million annually in transit fees, while Gazprom faces a $5 billion revenue loss. Other Russian gas routes, including the Yamal-Europe pipeline and Nord Stream, have also been disrupted. In 2023, Russia shipped 15 bcm of gas via Ukraine, a sharp drop from 65 bcm in 2020.
