The European Commission says the EU is ready for the transition, with reliance on Russian energy cut from a peak of 35%. Credit: Dabarti CGI/Shutterstock.

Russian gas exports to Europe via Ukraine ceased on 1 January 2025, ending a longstanding reliance on Soviet-era pipelines and marking a shift in the continent’s energy landscape, as reported by Reuters.

Gazprom, Russia’s state-owned gas supplier, confirmed the stoppage at 0500 GMT following Ukraine’s decision not to renew their transit agreement.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Despite the cessation, the European Union (EU) anticipates no immediate impact on consumer prices.

The halt in transit has prompted the last EU buyers of Russian gas, including Slovakia and Austria, to secure alternative supplies.

Hungary will continue to receive Russian gas through the TurkStream pipeline. However, the stoppage has created an energy emergency in Transniestria, a pro-Russian region in Moldova, leaving the region without heat and hot water.

Ukrainian President Volodymyr Zelenskiy declared the end of transit as “one of Moscow’s biggest defeats” and called for increased US gas exports to Europe.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“The more there is on the market from Europe’s real partners, the faster we will overcome the last negative consequences of European energy dependence on Russia,” he wrote on social media.

The European Commission states that the EU is prepared for this transition, highlighting the bloc’s reduced reliance on Russian energy, which has dropped from a peak of around 35% market share. The EU has increased gas imports from Norway and LNG from Qatar and the US.

“The European gas infrastructure is flexible enough to provide gas of non-Russian origin,” stated a commission spokesperson. “It has been reinforced with significant new LNG (liquefied natural gas) import capacities since 2022.”

Ukraine, facing a loss of up to $1bn in annual transit fees, will raise domestic gas transmission tariffs, potentially costing its industry an additional Hrv1.6bn ($38.2m) annually.

Gazprom is set to lose $5bn in gas sales due to the cessation.

The company’s cessation of supply to Austria’s OMV in November 2024 due to a contractual dispute has been partially mitigated by reduced gas flows from Slovakia to Austria.

Slovakia’s main gas buyer, SPP, has indicated it will incur extra transit costs as it shifts to pipelines from Germany and Hungary.

The disruption follows the 2022 destruction of the Nord Stream pipeline and the closure of the Yamal-Europe pipeline via Belarus, further diminishing Russian gas deliveries to Europe, which fell from 65 billion cubic metres (bcm) in 2020 to 15bcm in 2023.