Russia has ceased natural gas flows to Europe through Ukraine following Kyiv’s refusal to renew a key transit agreement. This marks the end of one of the last energy connections between Russia and Europe, once Moscow’s most lucrative market. The cancellation, effective with the New Year, has heightened energy stress across Europe and significantly impacts Russian gas giant Gazprom, eliminating a once vital revenue stream.
Before the war in Ukraine, Europe provided billions of dollars to Russia’s economy. However, in 2023, Gazprom suffered its first annual loss in over two decades due to dwindling European demand.
Ukraine Refuses to Renew Gazprom Agreements
The expired transit deal, relying on Soviet-era pipelines, allowed Russian gas to flow through Ukraine to European markets. Ukraine declined to extend the agreement, citing its contribution to Moscow’s war finances.
Gazprom confirmed halting gas flows as the deal expired, stating, “Due to the Ukrainian side’s repeated and explicit refusal to extend these agreements, Gazprom was deprived of the technical and legal opportunity to supply gas for transit.”
