BREAKING

Russia to halt gas transit through Ukraine starting Wednesday

By Al Mayadeen English
Source: Agencies
1 Jan 2025 08:49

The halt will cut 15 billion cubic meters of gas for Europe, leaving the Balkan Stream pipeline as the only remaining Russian supply route.

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The Sudzha gas measuring unit in the Kursk Region, through which Russian gas began to be pumped in Ukraine's gas transportation system for further transit to Europe in 2009. (Sputnik)

Reports on Wednesday confirmed that the transit of Russian gas to Europe via Ukraine will stop starting January 1 at 05:00 GMT, as the five-year transit agreement comes to an end.

This halt will result in a loss of around 15 billion cubic meters of gas for the European market, with the Balkan Stream pipeline being the sole remaining route for Russian gas deliveries to Europe.

Dive deeper

Since November 15, Gazprom has been supplying Europe with 42.4 million cubic meters of gas per day through Ukraine, reaching a peak capacity of 42.5 million cubic meters. Currently, the Sudzha gas metering station is the only point for Russian gas transit from Ukraine to Europe.

In 2023, Gazprom shipped about 15 billion cubic meters through Sudzha, representing 4.5% of the EU's total gas consumption.

The Balkan Stream pipeline delivers up to 15 billion cubic meters of gas annually to countries including Romania, Greece, North Macedonia, Serbia, Hungary, and Bosnia and Herzegovina, supplying gas from the TurkStream pipeline.

It is worth noting that experts told RIA Novosti that some of the gas previously flowing through Ukraine could be rerouted via the Turkish route, allowing it to reach Slovakia and Austria.

Ukraine could cost Slovakia $521mln if Russian gas transit to EU stops

Last Saturday, Prime Minister Robert Fico stated that Slovakia will lose up to 500 million euros (521 million dollars) per year if the transit of gas through the country to other European Union states is halted.

Slovakia expects its domestic gas needs to be met, while annual income generated from transiting Russian gas to the West should hit 400-500 million euros in 2025. However, since the transit is set to stop following January 1, Slovakia will immediately lose this revenue.

Fico further stated that during an EU summit in Brussels, Zelensky proposed compensating Slovakia with the same amount, extracted from frozen Russian assets, if Slovakia supports its NATO bid - a proposition immediately rejected.

He stated that not only he but also other countries with greater influence over the decision to admit new NATO members, oppose Ukraine's membership.

Who are the beneficiaries?

The Slovak prime minister also speculated that the United States would benefit most from stopping gas supplies from Russia through Ukraine to Europe, asking "What is behind this absurd decision by President Zelensky? Just look at which countries benefit most from reducing the European Union's dependence on gas from Russia. The answer is very simple: first and foremost, it is the United States."

He recalled that US President-elect Donald Trump has already threatened EU countries by introducing tariffs unless they start purchasing more US oil and gas.

On the other hand, Zelensky accused Fico on Monday of attempting to assist President Vladimir Putin by continuing to import gas from Russia.

Zelensky indicated that European Union leaders had observed Fico, who visited Moscow on Sunday, and his resistance to decreasing energy reliance on Russia, suggesting that this implies "he wants to help Putin earn money to fund the war and weaken Europe."

He expressed on social media platform X that "we believe that such assistance to Putin is immoral."

The current agreement for Russian gas transit through Ukraine to Europe expires at the end of 2024, and Kiev has consistently indicated it will not renew the deal. Last week, Zelensky also ruled out allowing Russian gas transit through Ukrainian territory after December 31, even if third parties purchase it.

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