Russia Halts Natural Gas Transit Through Ukraine.
On January 1, 2025, Russian state-owned energy company Gazprom announced the cessation of natural gas transit through Ukraine following Kyiv’s refusal to extend the gas transit agreement that expired at the end of 2024.
According to TASS, the five-year agreement between Gazprom and Ukraine’s Naftogaz, which facilitated the transit of 40 billion cubic meters of Russian gas annually, concluded without renewal.
Gazprom stated that Ukraine’s consistent refusal to extend the agreement deprived it of the technical and legal ability to continue gas transit through the Ukrainian route. The supply was halted at 8:00 a.m. Moscow time on January 1, marking a significant development in the strained energy relationship between the two nations.
Russian President Vladimir Putin previously indicated that negotiating a new agreement was no longer feasible as the deadline approached. Ukraine, in turn, declared its intention to cease the transit of Russian gas through its territory.
Gas Supply to Moldova Also Suspended
In a related move, Gazprom reduced natural gas supplies to Moldova to zero starting January 1, 2025, citing contract violations. The Russian energy giant accused the Moldovan government of failing to settle debts under their existing agreement.
Gazprom notified Moldovagaz, Moldova’s primary energy enterprise, of the decision, highlighting repeated payment failures as a breach of contract. The supply restriction, effective from 8:00 a.m. Moscow time, will remain in place until Moldovagaz rectifies the situation or receives formal notification from Gazprom to resume deliveries.
Gazprom also reserved the right to terminate the contract entirely and seek legal remedies, including compensation for damages and penalties due to Moldovagaz’s non-compliance.
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Broader Implications
The halt of Russian gas supplies through Ukraine and to Moldova underscores the escalating tensions between Russia and its neighbors over energy resources. With Europe already striving to diversify energy sources and reduce dependence on Russian gas, this development further complicates the regional energy dynamics.
Observers are watching closely for the potential economic and geopolitical ripple effects as countries in Europe grapple with maintaining energy security amid ongoing disputes with Russia.
