Ukraine Halts Russian Gas Transports to Europe After Key Deal Expires

What Happened?

Ukraine has stopped the transportation of Russian gas supplies to Europe ending a decades-long arrangement. This was after a key deal with Moscow expired at the end of 2024.

The results of this expiration have already reportedly impacted about 450,000 people in the Moldovan region of Transdniestria as heating and hot water supplies were cut from households.

Ukraine's Minister of Energy Herman Halushchenko said on the Telegram messaging app Wednesday that it ended its prewar transit deal 'in the interests of national security.'

According to a translation by The Associated Press, Halushchenko added, 'This is a historic event. Russia is losing markets and will incur financial losses. Europe has already decided to phase out Russian gas, and (this) aligns with what Ukraine has done today.'

Ukrainian President Volodymyr Zelenskyy reportedly vowed during a summit in Brussels last month that Kyiv would not allow Moscow to use the transits to continue profiting amid the ongoing Russia-Ukraine conflict.

The Associated Press added that the possibility of gas transports continuing was briefly held open if payments to Russia were withheld until the war ended.

Why it Matters

Kremlin-owned gas giant Gazprom signed the five-year transit deal with Ukraine’s gas transit operator Naftogaz in 2019.

During this arrangement, Ukraine had allowed Russia to pipe gas to Europe via its territory.

The relationship has now shifted with Kyiv unwilling to extend the deal while the war continues.

Gazprom recorded a $6.9 billion loss in 2023 due to diminished sales to Europe, according to reports.

This is despite Gazprom's efforts to boost exports to new buyer China.

It's reportedly the first annual loss in more than 20 years for Gazprom as gas trade continues to dwindle amid the war.

Ukraine now also faces the loss of reportedly $800 million a year in transit fees from Russia.

The U.S. has recently announced another significant aid package for Ukraine, totaling nearly $6 billion in additional combined military and budget assistance to support Ukraine in its fight 'against Russia's aggression.'

How it Affects You

Russian Foreign Minister Sergei Lavrov is reportedly still ready to negotiate a long-lasting peace agreement.

Russia reportedly rebuffed President-elect Donald Trump’s call for an immediate ceasefire.

Trump still hopes to restore ties and prevent further global impacts that have resulted from this war.