By Faridat Salifu
Russian state-owned energy giant Gazprom has suspended the flow of natural gas to Europe through Ukraine as of January 1, 2025, following Ukraine’s refusal to renew a key transit agreement.
The five-year deal between Gazprom and Ukraine’s Naftogaz, which regulated the transit of Russian gas through Ukrainian pipelines, expired at midnight of December 31, 2024 and no new agreement was reached in time.
Gazprom confirmed the cessation of the 40 billion cubic meters of gas typically transited through Ukraine annually, stating that Ukraine’s consistent refusal to extend the agreement left Gazprom without the necessary legal and technical framework to continue the deliveries. The halt in gas transit began at 8:00 a.m. Moscow time.
The agreement’s expiration marks a significant shift in energy relations between Russia and Ukraine. Moscow had previously indicated that a new agreement would not be feasible, dismissing the possibility of last-minute negotiations. In response, Ukraine had made it clear that it would no longer facilitate the transit of Russian gas.
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Simultaneously, Gazprom has also reduced natural gas supplies to Moldova to zero, citing unpaid debts under existing contracts.
The Russian company announced the supply freeze on January 1, 2025, following repeated failures by Moldova to meet its payment obligations for past deliveries. Gazprom confirmed that Moldova’s national energy provider, Moldovagaz, had been formally notified about the breach.
Under the terms of the contract, Gazprom reserves the right to terminate the agreement and seek compensation for damages resulting from Moldova’s non-compliance. The suspension of gas supplies will remain in effect until further notice.
These developments come amid rising energy tensions in Europe, where Gazprom’s supply decisions are increasingly shaping energy security concerns across the continent.
The suspension of gas transit through Ukraine is likely to have far-reaching implications for European energy markets, which have already been under pressure following previous supply cuts during the ongoing conflict in Ukraine.
