📣 Breaking News: Ukraine Demands a Clean Break from Russian Energy by New Year's Eve Handler-capped Ukrainian gas transportation to the EU from Russia is a wrap by December 31, 2025. Confirmed by presidential advisor Mychajlo Podoljak to Nowyny.Live, Ukraine is all set to sever ties as a passageway for Russian oil and gas headed to Europe. Instead, they're keen to facilitate gas transportation from Central Asian or Azeri countries to Europe, with the ultimate goal of decimating Russia's revenue from oil and gas sales.
The transit gas contract between Gazprom and Naftogaz is slated to expire on December 31, 2024. Despite the ongoing conflict between Ukraine and Russia, sparked by Moscow over two years ago, the agreement has largely been honored due to pressure from Ukraine's European allies, notably Hungary. Nevertheless, Ukrainian authorities have been vocal about their unwillingness to prolong this agreement, with President Volodymyr Zelenskyy reiterating their stance.
Although Russian oil deliveries via the Druzhba pipeline have still reached Hungary, Czech Republic, and Slovakia, the pipeline's northern leg leading to Germany has largely been inactive due to Western sanctions. Italian energy company Eni began pumping oil through the pipeline in August, earning transit income for Russia but preventing it from selling its own oil to the most financially rewarding European market. The decision to end Russian oil and gas transport through Ukraine is a strategic move to muzzle Russia's energy revenue streams.
🔍 In-Depth Analysis: - Russia stands to lose close to $5 billion in gas sales to Europe as a result of the cessation of gas transport through Ukraine. - Ukraine's loss includes approximately $800 million annually in fees from Russia. - The Druzhba pipeline, suspended due to payment issues caused by Western sanctions, could witness alternative routes in the Czech Republic, while Hungary and Slovakia face oil supply disruptions.
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