End of an Era: Russian Gas Transit via Ukraine Set to Cease

After over 40 years, Russian gas transit through Ukraine to Europe is expected to end as Naftogaz has declined to renew the contract. Alternatives for European countries include other pipelines and liquefied natural gas. The shift follows a significant decrease in Russian gas deliveries post-2022.

Russian gas supplies to Europe via Ukraine are slated to terminate on January 1, after Ukraine's Naftogaz rejected a renewal of the transit agreement with Russia's Gazprom. Ukrainian President Zelenskiy hinted at allowing transit if payments to Moscow were suspended, but Russian President Putin indicated time for a deal was insufficient.

Europe has increasingly turned away from Russian gas since the invasion of Ukraine in February 2022, decreasing Russia's market share from a peak of 35% to around 8%. The European Commission says the decline can be balanced by liquefied natural gas and non-Russian pipeline imports.

Austria and Slovakia, reliant on the Ukraine route, are looking to diversify their supplies. Alternatives include the TurkStream pipeline and routes via Hungary, Austria, the Czech Republic, and Poland. Moldova, also affected, is planning measures to cut gas consumption after Gazprom announced a supply suspension.

(With inputs from agencies.)