Russia’s gas supply through Ukraine was cut off. For more than 40 years, this gas was supplied to Europe through an agreement between Ukraine’s national oil and gas company Naftogaz and Russia’s state-owned energy company Gazprom. But the latest five-year contract expired yesterday (January 1), and the supply has stopped after Ukraine refused to renew a new contract.
Ukrainian President Volodymyr Zelensky said on December 19 that if the war does not end and Moscow suspends its debt payments, allowing Russian gas supplies could be considered. Just a week after his comments, Russian President Vladimir Putin said, “There is no time for a new deal this year.”
Russia has cut gas supplies to Europe since its invasion of Ukraine in February 2022. Once supplying 35 percent of Europe’s gas needs, it has now dropped to just 8 percent. Russia supplied only 1,400 cubic meters of gas to Europe via Ukraine last year, down from 6,500 cubic meters the previous year. The European market is now dominated by countries such as Norway, the United States and Qatar due to the cut-off of Russian gas supplies.
Ukraine pipelines used to supply gas to Austria and Slovakia. But now the gas suppliers of these countries have found new alternatives. Slovakia’s main gas importer has already signed deals with the US, Italy and other countries. Austria has also overhauled its supply chain.
Russia supplied about 200 million cubic meters of gas to Moldova’s breakaway region of Transnistria every year. It was used to generate cheap electricity, which was sold in the territory controlled by Moldova. However, due to non-payment of dues, Gazprom has stopped this supply from yesterday.
Moldovan Prime Minister Dorin Riesen criticized Gazprom’s decision and said, “We have arranged to import gas from other countries. At the same time, the country announced a 30 percent austerity policy in gas consumption.
The future of Europe
The European Commission has said that Russia’s cutoff of gas supplies will not harm Ukraine, as it does not use Russian gas. On the other hand, the EU is now beginning to rely on non-Russian alternatives, which are redefining the direction of the continent’s energy future