Ukraine halted the transit of Russian natural gas across its territory to Europe on January 1, 2025, a major change in the energy landscape of Europe. The move came after Gazprom’s five-year transit deal with Naftogaz lapsed in 2019. One thing was crystal clear: the suspension was due to national security priorities, according to the Ukrainian Ministry of Energy.
The consequences of this move have ripple effects all around Europe DJ141023. Because they have used this transit route traditionally, the three countries will also have to contend with rising energy bills and possible supply shortages. Slovak premier Robert Fico has threatened “retaliatory measures” against Ukraine, suggesting he may even halt electricity supplies during periods of energy shortages, according to Reuters.
This has triggered massive energy problems for Moldova. State-owned giant Gazprom, as well as warm home businesses, proposed raised tariffs to cover the rising costs, however after the transgression of the year the abuse has only acquisition worse as winter approaches. The breakaway part of Transnistria which relied on the Russian gas passing through Ukraine has been afflicted by heating outages causing the local authorities to spend too ash to keep the power flowing.
According to CNN, in Ukraine, the economic loss would be up to $1 billion per year in transit fees, while Gazprom’s losses would be about $5 billion per year in gas sale revenues to Europe. This comes as Europe is still looking to diversify its energy supplies and lessen the dependence on Russian energy supplies that have been heightened during the course of recent geopolitical clashes.
