KYIV, Ukraine (AP) — Ukraine cut off the flow of Russian natural gas through a major pipeline to Europe Wednesday, refusing to renew a transit agreement in a move aimed at undermining Moscow’s war funding capabilities.
The Soviet-era Urengoy-Pomary-Uzhgorod pipeline, Russia’s last major gas corridor to Europe following the 2022 Nord Stream sabotage, had carried Siberian gas to European markets for decades. The pipeline recently accounted for only about 5% of EU gas imports, down from Russia’s peak of providing 40% of Europe’s imported gas.
“This is a historic event,” said Ukraine’s Energy Minister Herman Galushchenko. “Russia is losing markets, it will suffer financial losses.”
The shutdown was anticipated by European countries and is not expected to cause immediate price spikes or supply disruptions. However, the move carries risks for Ukraine, as military analysts warn that Moscow might now target Ukraine’s previously spared pipeline network.
Slovakia, which heavily relied on Russian gas, has threatened to retaliate by cutting Ukraine’s crucial electricity imports. Prime Minister Robert Fico traveled to Moscow in December to meet with Russian President Vladimir Putin, prompting Ukrainian President Volodymyr Zelenskyy to accuse him of opening a “second energy front” in the war.
“We won’t allow them to earn additional billions off our blood,” Zelenskyy said of the decision to halt gas transit.
Moldova declared a state of emergency over the shutdown, with its breakaway Transnistria region immediately halting gas heating to private homes. Gazprom had warned Moldova it would stop all gas deliveries on January 1, citing unpaid bills.
The Russian energy giant, which recorded its first annual loss since 1999 last year, confirmed the halt in gas transit. Analysts estimate the shutdown could cost Gazprom $6.5 billion in revenues.
Ukraine has been working to decrease its own dependence on Russian energy, recently importing liquefied natural gas from the United States via Greece. “Cargoes like this are further eroding Russia’s influence over our energy system,” said Maxim Timchenko, head of Ukraine’s largest private utility.