As Europe’s Russian gas era ends, Ukrainian President Volodymyr Zelenskyy urges the U.S. to step up and supply more gas 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
- Ukraine received its first U.S. LNG cargo, marking a shift towards diversifying energy sources
- European LNG market expected to grow, with imports projected to rise by 20% in 2025
- Moldova faces severe energy shortages due to the cessation of Russian gas transit
- Zelenskyy calls on the U.S. to increase gas supplies to Europe
The End of an Era: Russian Gas Transit Through Ukraine Halts
On January 1, 2025, a significant geopolitical shift occurred as Russia’s Gazprom ceased gas transit via Ukraine, marking the end of a gas transit arrangement that began in 1991. This development comes after years of declining Russian gas exports to Europe, a trend that accelerated following Russia’s invasion of Ukraine in 2022.
Ukrainian President Volodymyr Zelenskyy has described this cessation as a major defeat for Moscow, emphasizing the strategic importance of this move. Ukraine’s Energy Minister, Herman Halushchenko, cited national security as the primary reason for not renewing the gas deal.
“We have stopped the transit of Russian gas. This is a historic event. Russia is losing markets and will incur financial losses. Europe has already decided to phase out Russian gas, and [this] aligns with what Ukraine has done today,” said Halushchenko.
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
Europe’s Response and Preparations
The European Union has been preparing for this change, with most member states reportedly able to cope with the new energy landscape. The EU has sought alternative gas sources from Qatar, the United States, and Norway since Russia’s invasion of Ukraine, reinforcing its gas infrastructure with new LNG import capacities.
However, the transition away from Russian energy is expected to be complex and uneven. Some European countries still face challenges in reducing dependency on Russian gas due to logistical and political issues. Slovakia, for instance, anticipates increased costs for alternative gas routes and potential consumer price hikes in 2025.
Ukraine’s Strategic Move and Call for U.S. Support
In a significant development, Ukraine’s largest private energy company, DTEK, received its first U.S. LNG cargo on December 27, 2024, at the Revithoussa LNG terminal. This move highlights efforts to reduce reliance on Russian gas and diversify energy sources amid ongoing geopolitical tensions.
President Zelenskyy has seized this moment to urge the United States to supply more gas to Europe. This call for support not only addresses immediate logistical challenges but also fosters dialogue on long-term energy strategy, pushing Europe to forge essential partnerships for sustainable energy autonomy.
The Road Ahead: Challenges and Opportunities
While the stoppage of Russian gas transit through Ukraine is not expected to raise gas prices in the EU immediately, it presents both challenges and opportunities for the continent’s energy future. The European LNG market is projected to grow, with imports expected to rise by 20% in 2025, primarily from the U.S. and Qatar.
However, countries like Moldova, which is not an EU member, are severely affected by the changes, with energy shortages impacting the breakaway region of Transnistria. This situation underscores the uneven impact of the energy transition across different regions and the need for comprehensive strategies to address these disparities.
As Europe navigates this new energy landscape, the continent faces the dual challenge of ensuring energy security while advancing its climate goals. The coming years will likely see increased investment in renewable energy sources and infrastructure to support a more diversified and resilient energy system.
