Russian gas supplies to European Union countries via Ukraine are scheduled to end on the first day of 2025. Ukraine’s gas transport operator said Russia has not specified gas supplies via Ukrainian pipelines on January 1, Euronews reported.
This marks the end of a five-year agreement signed between the two warring nations in 2019, under which Russia transfers liquefied natural gas (LNG) exported to the continent to its final destination. Before that, he was allowed to transit through Ukraine.
The deal was extremely lucrative, netting the Kremlin billions of dollars in revenue and Kiev in transportation costs.
The decision came as Ukrainian President Volodymyr Zelenskiy announced there were no plans to renew the contract. He stressed that his decision was important for allowing Europe to move on from Russia and not allowing the Kremlin to make billions more.
The closure of Russia’s oldest gas route to Europe brings to an end a decade of turbulent relations with mainland Russia, which began with the 2014 annexation of Ukraine’s Crimea peninsula.
Since Russia launched a special military operation in Ukraine in February 2022, the EU has stepped up efforts to reduce Russia’s energy dependence. Russian gas accounted for around 8% of the EU’s total gas imports in 2023, according to figures released by Brussels. In 2021, that percentage was more than 40%.
Despite the bloc’s preparations and efforts to replace Russian gas, Europe faces rising energy costs, hurting the continent’s industrial competitiveness compared to Western countries in the United States and Eastern countries in China. I feel the impact.
Many countries are experiencing an economic slowdown, with inflation rates soaring and the cost of living crisis worsening.
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