Russia gradually reduces gas flow to Europe via Ukraine – Reuters
The aggressor country russia is reducing gas shipments to Europe via Ukraine on the last day of a natural gas transit agreement, Reuters reported on Tuesday, December 31.
Russian energy company Gazprom said it would transport reduced volume of gas through Ukraine to Europe on the last day before the agreement that has kept transit flowing during three years of war expires. Gazprom said it would pump 37.2 million cubic meters on Tuesday, down from 42.4 million cubic meters on Monday.
"Barring a surprise last-minute deal, gas flows are likely to cease on January 1, when a five-year transit agreement between Russia and Ukraine expires, marking an almost complete loss by Moscow of its once-powerful influence in the European gas market. Russian President Vladimir Putin said on December 26 that there was no time left this year to sign a new deal on gas transit through Ukraine," the report said.
Analysts expect minimal impact on the market from the halt in russian gas supplies, with russia's Gazprom, the world's largest gas exporter, posting a USD 7 billion loss in 2023, its first annual loss since 1999. Ukraine is giving up about USD 800 million a year for gas transit, while Gazprom will lose about USD 5 billion from the halt in sales of blue fuel to Europe via Ukraine.
As the Ukrainian News agency earlier reported, on October 7, Prime Minister Denys Shmyhal said that Ukraine would not extend the gas transit agreement with russia after its expiration in 2024.
On December 20, Shmyhal said that on January 1, 2025, at 7:00 a.m., the transit of russian gas through Ukraine would cease.
On December 31, the European Commission said that the European Union was ready to terminate the transit of russian gas through Ukraine.