An era of cheap Russian gas that once transported to the European continent has expired.
Russia’s long-standing gas pipeline to Europe via Ukraine, a lifeline for decades, is officially shutting down as the contract between the two nations expires on New Year’s Day.
This marks the end of a deal that was inked in 1991 and smoothly exported cheap gas to European capitals.
Europe Turned To Alternative Routes
The relationship between Russia and Ukraine has been fraught since the annexation of Crimea in 2014.
The Ukraine war in 2022 accelerated the EU’s push to move away from Russian energy.
Europe has turned to alternatives like liquefied natural gas (LNG) from Qatar and the US and increased pipeline imports from Norway.
Gazprom, Russia’s state-owned gas giant, reported a $7 billion loss last year—the first since 1999.
Ukraine on the other hand will lose $800 million a year in transit fees from Russia after the deal expires.
