Russian gas exports to Europe via Ukraine ceased on 1 January 2025, ending a longstanding reliance on Soviet-era pipelines and marking a shift in the continent’s energy landscape, as reported by Reuters.
Gazprom, Russia’s state-owned gas supplier, confirmed the stoppage at 0500 GMT following Ukraine’s decision not to renew their transit agreement.
Despite the cessation, the European Union (EU) anticipates no immediate impact on consumer prices.
The halt in transit has prompted the last EU buyers of Russian gas, including Slovakia and Austria, to secure alternative supplies.
Hungary will continue to receive Russian gas through the TurkStream pipeline. However, the stoppage has created an energy emergency in Transniestria, a pro-Russian region in Moldova, leaving the region without heat and hot water.
Ukrainian President Volodymyr Zelenskiy declared the end of transit as “one of Moscow’s biggest defeats” and called for increased US gas exports to Europe.
“The more there is on the market from Europe’s real partners, the faster we will overcome the last negative consequences of European energy dependence on Russia,” he wrote on social media.
The European Commission states that the EU is prepared for this transition, highlighting the bloc’s reduced reliance on Russian energy, which has dropped from a peak of around 35% market share. The EU has increased gas imports from Norway and LNG from Qatar and the US.
“The European gas infrastructure is flexible enough to provide gas of non-Russian origin,” stated a commission spokesperson. “It has been reinforced with significant new LNG (liquefied natural gas) import capacities since 2022.”
Ukraine, facing a loss of up to $1bn in annual transit fees, will raise domestic gas transmission tariffs, potentially costing its industry an additional Hrv1.6bn ($38.2m) annually.
Gazprom is set to lose $5bn in gas sales due to the cessation.
The company’s cessation of supply to Austria’s OMV in November 2024 due to a contractual dispute has been partially mitigated by reduced gas flows from Slovakia to Austria.
Slovakia’s main gas buyer, SPP, has indicated it will incur extra transit costs as it shifts to pipelines from Germany and Hungary.
The disruption follows the 2022 destruction of the Nord Stream pipeline and the closure of the Yamal-Europe pipeline via Belarus, further diminishing Russian gas deliveries to Europe, which fell from 65 billion cubic metres (bcm) in 2020 to 15bcm in 2023.
“Russian gas exports to Europe via Ukraine cease” was originally created and published by Offshore Technology, a GlobalData owned brand.
Story Continues
The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Source link : http://www.bing.com/news/apiclick.aspx?ref=FexRss&aid=&tid=6776726e68674ebd949ec79ced34f3e2&url=https%3A%2F%2Ffinance.yahoo.com%2Fnews%2Frussian-gas-exports-europe-via-094918664.html&c=14184722924324272384&mkt=de-de
Author :
Publish date : 2025-01-02 01:50:00
Copyright for syndicated content belongs to the linked Source.
Arabic
Chinese (Simplified)
Dutch
English
French
German
Italian
Portuguese
Russian
Spanish