As Russian gas exports through Ukraine come to a halt, President Zelenskyy calls on the US to increase gas supply to Europe, marking a significant shift in the continent’s energy landscape.
At a Glance
- Russia’s Gazprom ceased gas transit via Ukraine on January 1, 2025, ending a long-standing arrangement
- Ukraine received its first US LNG cargo, signaling efforts to diversify energy sources
- President Zelenskyy urges the US to supply more gas to Europe
- European LNG market expected to grow by 20% in 2025, primarily from US and Qatar
- Most EU states prepared for the change, but Moldova faces severe energy shortages
End of an Era: Russian Gas Transit Through Ukraine Ceases
On January 1, 2025, Russia’s Gazprom halted gas transit through Ukraine, marking the end of a gas transit arrangement that began in 1991. This cessation comes after the expiration of a five-year deal and signifies a major shift in Europe’s energy supply dynamics. Ukrainian President Volodymyr Zelenskyy described this development as a significant defeat for Moscow, highlighting the geopolitical implications of this energy transition.
The European Union has been preparing for this change, with most member states now able to cope with the new reality. However, the transition away from Russian energy is expected to be complex and uneven, as infrastructure for liquefied natural gas (LNG) is still developing in some regions.
Zelenskyy Urges U.S. To Supply More Gas To Europe After Ukraine Halts Flow Of Russian Gas https://t.co/0vxCSwnnAp #OAN
— One America News (@OANN) January 1, 2025
Ukraine’s Strategic Shift: First US LNG Cargo Arrives
In a strategic move to reduce reliance on Russian gas, Ukraine’s largest private energy company, DTEK, received its first US LNG cargo on December 27, 2024. The shipment arrived at the Revithoussa LNG terminal, marking a significant step towards diversifying energy sources amid ongoing geopolitical tensions.
This move aligns with broader European efforts to seek alternative gas sources from countries like Qatar, the US, and Norway since Russia’s invasion of Ukraine in 2022. The European LNG market is projected to grow significantly, with imports expected to rise by 20% in 2025, primarily from the US and Qatar.
Zelenskyy’s Call to Action: US Gas Supply to Europe
In light of these developments, Ukrainian President Volodymyr Zelenskyy has urged the United States to expand its gas supply to Europe. This appeal underscores the urgent need for Europe to diversify its energy providers and reinforces the importance of strategic alliances in ensuring energy security.
Ukraine’s energy minister cited national security as the primary reason for not renewing the gas deal with Russia. The European Commission has stated that the continent’s gas infrastructure is flexible enough to accommodate non-Russian gas sources, having been reinforced with significant new LNG import capacities since 2022.
“We did our homework and were well prepared for this scenario,” said Austria’s Energy Minister Leonore Gewessler.
Uneven Impact Across Europe
While most EU states have prepared for this transition, some countries face more significant challenges. Slovakia, for instance, anticipates increased costs for alternative gas routes and potential consumer price hikes in 2025. Moldova, not an EU member, is severely affected, with energy shortages impacting the breakaway region of Transnistria.
Despite these challenges, the stoppage is not expected to significantly raise gas prices in the EU, as it was anticipated and prepared for. The transition away from Russian energy marks a new chapter in Europe’s energy policy, emphasizing the need for diversification and strategic partnerships to ensure a stable and secure energy future.
