On the First Day of 2025: Russian Gas Supplies to Europe Halt
Russian gas supplies through Ukraine have completely stopped as the Russian-Ukrainian transit agreement for the gas pipeline passing through Kyiv-controlled territories expired. The agreement, signed before the war in 2019, lasted for five years and ended on January 1, 2025.
According to an announcement by the Russian gas company Gazprom, exports to Europe via Ukraine ceased at 8:00 a.m. Moscow time following the expiration of the transit agreement.
Data from the Ukrainian company managing the gas pipeline through its territory indicate that the Russian side did not request authorization for any gas flow starting January 1, 2025. Kyiv also refused to negotiate a new agreement, relinquishing $800 million in annual transit revenues from Moscow. Simultaneously, Russia lost $5 billion in gas sales to Europe via Ukrainian territories.
Until last month, Europe relied on about 8% of its gas consumption from Russian sources, a sharp decline from the 35% market share Russia held before the Ukraine war. European efforts to secure more expensive alternatives have since contributed to economic inflation in the European market.
