Ukraine Stops Russian Gas Transit; EU Prepared Amid Slovak Warnings

Jan 1, 2025, 08:10 AM

Ukraine has halted the transit of Russian natural gas to Europe through its territory as of January 1, 2025, marking the end of a key five-year transit agreement with Gazprom. The Ukrainian Ministry of Energy cited national security interests for the decision, stating that it could no longer facilitate the flow of gas that finances Russia's military actions. The cessation affects supplies to several European countries, including Austria, Hungary, Slovakia, and Moldova, which relied on the Ukrainian pipeline system for Russian gas imports. Moldova has declared a state of emergency in response to the gas cutoff. European gas prices have soared due to the halt in supplies. The European Commission stated that the stop of gas flow via Ukraine was an expected situation and that the European Union is prepared, with infrastructure flexible enough to supply gas from non-Russian sources through alternative routes. Slovakia's deputy prime minister warned of a "drastic impact" on Europe and threatened reciprocal measures against Ukraine. Ukraine stands to lose approximately $700 million in annual transit fees, while Gazprom may lose an estimated $5 billion in revenue due to the termination of the transit agreement. Poland's foreign minister hailed the move as a new victory following NATO's expansion.