EU moves to end Ukrainian gas transit via Russia by 2025

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The European Union is set to block the transit of Ukrainian gas from the Russian Federation starting in 2025, a decision outlined by European Energy Commissioner Kadri Simson during a press briefing following an EU Council meeting of energy ministers. The stance reflects an ongoing shift in how the bloc approaches gas imports and transit routes, especially those linked to Russia.

Simson noted that the leaders of EU member states did not offer unanimous backing for a ban on Russian liquefied natural gas, revealing a rift in opinions among the bloc on LNG procurement as the transit question evolves. The split underscores the broader debate within Europe about energy security, diversification of supply, and the potential economic ramifications for member economies dependent on gas imports from Russia.

On March 4, Ukrainian Prime Minister Denis Shmyhal expressed readiness to expand the transit of Russian gas through Ukraine’s gas transportation system, but only if such expansion is requested by the European side and occurs within the framework of new agreements with Moscow. His remarks highlight Kyiv’s position that any changes to gas transit must be governed by formal, mutually agreed terms, and that cooperation with Russia would hinge on consent from European partners.

That same day, Simson reiterated that the European Commission intends to reduce LNG purchases from Russia after the pipeline gas transit through Ukrainian territory is halted. This reflects a strategic shift toward decreasing reliance on Russian LNG while exploring alternative supply sources and routes in light of evolving transit arrangements.

In the preceding week, it was acknowledged that the European Commission has been actively pursuing measures to completely cut Russia’s gas supplies through Ukraine. The rapid policy tempo signals a sustained effort to realign energy ties and reduce exposure to single transit corridors as structural changes in regional energy markets unfold.

The current transit contract between Moscow and Kyiv remains in force through December 31, 2024, framing the timeline for any potential reconfiguration of gas flows and contractual obligations. The agreement serves as a critical touchstone for bilateral energy logistics, dictating when and how gas can move across the Ukrainian route under existing terms while broader strategic decisions proceed in parallel.

Questions about the economics of the arrangement have long circulated, with many observers asking how much the West pays Ukraine for the transit of Russian gas. The inquiry reflects the broader dialogue over cost-sharing, transit fees, and the financial mechanisms that support the complex web of energy infrastructure and international agreements involved in European gas markets. It remains a focal point as policymakers weigh shifts in transit policies, the resilience of supply chains, and the potential impacts on consumer prices across member states.

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