Russia ends gas exports to Europe via Ukraine
What's the story
Russia has ceased its natural gas exports to Europe via Ukraine from January 1 after a transit deal between Moscow and Kyiv expired without any renewal agreement.
This brings an end to Russia's oldest gas route to Europe, which has been operational since the Soviet era.
The closure of Russia's oldest gas conduit to Europe marks the conclusion of a decade of strained ties, which began with Russia's 2014 invasion of Crimea.
Ukraine stopped purchasing Russian gas the next year.
Minister's statement
Ukraine Energy Minister labels halt as 'historic event'
Ukraine's Energy Minister German Galushchenko called the end of gas flows a "historic event."
He said that "Russia is losing its markets" and forecasted financial losses for the country.
The now-expired transit deal made up for nearly half of Russia's total pipeline gas exports to Europe.
In 2023 alone, Russia shipped some 15 billion cubic meters (bcm) of gas through Ukraine.
Company's stance
Gazprom cites Ukraine's refusal for transit halt
Gazprom, Russia's state-controlled energy giant, has blamed Ukraine's refusal to renew agreements for halting gas transit.
The company said it was "deprived of the technical and legal ability" to continue gas transit through Ukrainian territory from January 1, 2025.
Russia, however, continues to export gas through the TurkStream pipeline under the Black Sea.
TurkStream operates two lines, one for the Turkish domestic market and the other for central European consumers like Hungary and Serbia.
Energy shift
Europe intensifies efforts to reduce dependency on Russian energy
The European Union has been ramping up efforts to decrease reliance on Russian energy since the war started in 2022.
Countries such as Slovakia and Austria have already obtained alternative gas supplies after the shutdown.
Moldova, one of the worst-hit countries by this development, intends to cut down its gas consumption by a third.
Strained relations
Transit halt concludes decade of strained relations
Gazprom now faces an estimated $5 billion loss in annual gas sales, while Ukraine stands to lose around $800 million annually in transit fees.
Russia and the former Soviet Union spent half a century building up a sizable portion of the European gas market, but the war has nearly ruined Gazprom's business.
The Yamal-Europe pipeline, which goes through Belarus, has already been closed, while the Nord Stream route from the Baltic Sea to Germany was blown up in 2022.